The Ukrainian government has officially approved a new agreement with Japan to secure around $3 billion (approximately £2.4 billion) through the international Ukraine Facility programme. The funding, which comes from revenues generated by frozen Russian assets, will be allocated to Ukraine’s urgent budget needs, national reconstruction, and long term development.
Prime Minister Denys Shmyhal confirmed the approval of the agreement on Thursday, stating that the deal will contribute directly to Ukraine’s financial stability and rebuilding efforts as the war with Russia continues. The funds will be released under the broader Ukraine Facility initiative, which is expected to raise a total of $50 billion (around £39.8 billion) to support Ukraine’s recovery and resilience.
According to the Prime Minister, these specific funds are derived from interest on Russian state assets that have been immobilised by the international community. He emphasised that Ukraine expects all such frozen assets of the aggressor state to be confiscated and redirected towards repairing the damage caused by Russia’s full scale invasion.
This financial mechanism marks another step in holding the Russian dictatorship accountable for its war against Ukraine. The deal with Japan highlights the growing international resolve to ensure that Russian resources fund Ukrainian reconstruction rather than sit untouched in Western institutions.
Previously, Reuters reported that financial firm Euroclear would redistribute €3 billion (around £2.6 billion) of frozen Russian assets to Western investors to compensate for losses inflicted by Moscow’s aggression, further tightening the economic pressure on the Kremlin.
