PM: Ukraine, Japan seal $3 billion deal to boost Kyiv’s wartime economy

Ukrainian Prime Minister Denys Shmyhal has said that Ukraine and Japan officially signed a critical agreement that will unlock $3 billion in emergency funding for Kyiv under the Extraordinary Revenue Acceleration (ERA) programme, aimed at supporting Ukraine’s wartime economy and resilience.

"Ukraine and the Japanese agency JICA have signed an agreement necessary for receiving $3 billion under the ERA initiative. The funds will be repaid using revenues generated from frozen Russian assets," Caliber.Az reports, citing Shmyhal’s message on Telegram.

He said that the newly secured funds will be used for high-priority budget expenditures aimed at stimulating economic development and reinforcing the country's defences.

"This money will be directed toward priority budgetary needs for economic growth and strengthening Ukraine," he added. 

To date, Ukraine has received $14.7 billion under the ERA initiative, a programme designed to accelerate access to international financial aid while utilising seized Russian sovereign assets as a long-term repayment mechanism. The ERA programme falls under a wider $50 billion loan agreement outlined by G7 leaders in October 2023.

By Naila Huseynova