Ukraine received $1.3 billion from Japan through the G7 mechanism using proceeds from Russian assets
Kyiv • UNN
Ukraine received a grant from Japan through the G7 mechanism, funded by profits from Russian assets. The funds will be directed to social expenditures of the state budget.
Ukraine received a grant of almost $1.3 billion from Japan within the G7 ERA mechanism, financed by profits from immobilized Russian assets, Prime Minister Yulia Svyrydenko announced on Wednesday, writes UNN.
Ukraine received almost $1.3 billion from the Government of Japan under the World Bank's PEACE in Ukraine project. The funds have been credited to the general fund of the state budget and are directed to social expenditures.
She indicated that this is the second tranche from Japan, financed under the G7's Extraordinary Revenue Acceleration for Ukraine mechanism. Its total volume is 50 billion US dollars.
Since February 2022, budget support from Japan has exceeded $10.7 billion, of which over $2.7 billion has come in the form of grants, she added.
The Prime Minister expressed gratitude to the government of Japan for the grant, as well as to the World Bank for coordination, noting that "this assistance is extremely important for ensuring Ukraine's financial stability."
For reference
The G7 member states' Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, amounting to up to $50 billion, provides for a loan to Ukraine, which is repaid from profits generated by immobilized Russian sovereign assets.