Japan Allocates $3 Billion to Ukraine as Part of G7’s Loan

The Japanese government has allocated JPY 471.9 billion (£3.08 billion) as part of a £50 billion loan from the G7 countries to support Ukraine. The Japanese 47news reported on this. As of October 28, 2024, the G7 reached a final agreement to start supporting Ukraine with loans totaling about £50 billion.

Each G7 country will sign an individual loan agreement with Ukraine. The funds will be disbursed in installments between the end of 2024 and the end of 2027. The loan will be repaid from the proceeds of the frozen Russian assets.

Loan from G7

It also became known that the EU will provide Ukraine with EUR18.115 billion (£19.6 billion) as part of this loan, despite the fact that the European Parliament approved EUR35 billion of the EU contribution to the loan (about £38 billion).

Such a sum was a safeguard in case the United States refused to contribute the previously agreed share. And it was expected that this amount would decrease after the U.S. made its contribution. According to a statement by the Minister of Finance of Canada, the Canadian contribution will amount to CAD £5 billion (£3.7 billion).

In addition, on October 22, 2024, it became known that the United Kingdom would provide Ukraine with a loan of GBP2.26 billion (£2.94 billion) as part of a loan from the G7. And on October 23, 2024, Daleep Singh, the U.S. Deputy National Security Advisor on International Economics confirmed the allocation of £20 billion by the United States as part of the £50 billion loan agreed by the Group of Seven at the expense of Russian frozen assets.

Targeted expenditures

The G7 program for Ukraine includes a £50 billion loan.

The money will be used for military and budgetary needs, and to restore the war-torn country. The loan will be repaid from the proceeds of Russian frozen assets under Western sanctions. However, it is not yet clear how the loan money will be allocated and for what needs.

And whether the partners will impose restrictions on the types of expenditures. In particular, it is known that part of the loan funds from the European Union will be used by Ukraine to purchase weapons primarily made in Ukraine, domestic long-range missiles and drones. And for the Ukrainian energy sector.

In addition, Ukraine is ready to spend part of the funds to strengthen its air defense.

Ukrainian-made Palianytsia long-range missile-drone. Photo credits: United24

Similarly, according to the UK government, the funds will be used to purchase air defense systems, artillery, and other military equipment. As well as for budgetary expenditures.

The Deputy National Security Advisor stated the White House intends to split its share of the loan--£20 billion--on military and financial assistance for Ukraine. Military aid must be approved by the U.S. Congress.

"The United States will provide £20 billion to support Ukraine in this effort, whether it is split between economic and military support or whether it is provided entirely through economic assistance," Daleep Singh, the U.S.

Deputy National Security Advisor on International Economics said.