The Japanese government will provide Ukraine with a loan of 471.9 billion yen ($3.08 billion at the current exchange rate) as part of the G7 initiative "Accelerating Emergency Revenues (ERA) for Ukraine," reports Kyodo News on Monday.
It was noted that by October 28, the G7 countries reached a final agreement on the provision of approximately $50 billion in aid to Ukraine and the distribution of these funds, including the EU will provide a loan of EUR 18.115 billion.
It is clarified that each G7 country will conclude individual loan agreements with Ukraine, distributing loans in installments from December 1, 2024, to the end of 2027. They will be repaid from revenues generated from frozen Russian assets, meaning Ukraine will effectively not have to repay them.
As reported, the G7 announced on October 25 in Washington that they had reached a consensus on collectively providing Ukraine with loans totaling $50 billion. Earlier, the U.S. indicated that it would provide $20 billion under the ERA. Subsequently, the EU confirmed plans to provide Ukraine with approximately EUR 18 billion over 2025 as new macro-financial assistance, the conditions of which are tied to the Ukraine Facility.
The UK also announced on October 22 that it is providing Ukraine with a military loan of GBP 2.26 billion (almost $3 billion at the current exchange rate) for the purchase of necessary military equipment under the ERA.
Canada announced in June, immediately after the G7 decision on the ERA initiative, that it would allocate CAD 5 billion ($3.6 billion at the current exchange rate) within this framework.
The European Commission reminded that the creation of the EU’s special Ukraine Loan Cooperation Mechanism (ULCM) facilitated the consensus among G7 members, through which emergency revenues from frozen Russian sovereign assets and other voluntary contributions made by member states or third countries will flow. These resources will then be directed towards repaying the principal and interest on Ukraine's corresponding bilateral loan agreements with creditors.
The IMF, in its updated report following the fifth review of the Extended Fund Facility (EFF) program, indicated that upon the conclusion of the war at the end of 2025, Ukraine would need $33.1 billion out of the mentioned $50 billion for budget support: $19.1 billion next year, $9.2 billion in 2026, and $4.9 billion in 2027.
In a negative scenario of the war extending until mid-2026, Ukraine's budget would require the full $50 billion to cover its deficit.