Japan to provide Ukraine with $246.5 million loan by end of 2025

Ukraine is set to receive a $246.5 million loan from Japan by the end of 2025, the Ukrainian Ministry of Finance announced.

According to the ministry’s post on Facebook, cited by Caliber.Az, the funds will be provided under the Support for Recovery through Sound Fiscal Management (SURGE) programme, through an agreement signed with the International Bank for Reconstruction and Development.

Of the total amount, $229.7 million will be allocated directly to Ukraine’s state budget by the end of 2025. The remaining $16.8 million is earmarked for capitalising interest, helping to lower the cost of servicing Ukraine’s debt obligations in the coming years.

The SURGE project, implemented in Ukraine since 2024, aims to enhance fiscal management and establish an efficient public investment management system. Prior agreements under the programme have provided Ukraine with $760 million in funding.

Earlier this year, on  April 18, Finance Minister Serhiy Marchenko signed an agreement with Japan for a loan of 471.9 billion Japanese yen (approximately $3 billion) as part of the G7 ERA initiative, which has a total funding volume of around $50 billion.

The loans will be serviced and repaid using future profits from frozen Russian assets. The 30-year financing is intended to support Ukraine’s priority budgetary needs while promoting economic recovery and development.

By Tamilla Hasanova