Japan to transfer funds from profits of Russian assets to Ukraine

Loan Agreement between Ukraine and Japan

In 2025 Ukraine and the Japan International Cooperation Agency (JICA) signed a loan agreement for 471.9 billion yen (over USD 3 billion).

According to the terms and conditions, the loan will be serviced and repaid at the expense of the proceeds from the frozen Russian assets, stored in Japan.

Financing mechanism

This is the first time that Tokyo has implemented a model for using profits from Russian assets to support Ukraine.

The Japanese side emphasises that all funds will be used to restoration of critical infrastructure, power engineers and humanitarian needs.

“This is a step of solidarity with the Ukrainian people and a reaffirmation of our support in the struggle for peace and reconstruction,” the Japanese government said.

Context: how the frozen assets mechanism works

After the start of the full-scale invasion of Russia, the G7 countries froze more than $300 billion of Russian assets. Some of them generate income - interest on securities or bank deposits.

It is these profits that are planned to use to help Ukraine, without violating international law.

Japan has become one of the first countries, which officially approved the legal mechanism for transferring such funds to Kyiv.