14 Apr 2023 12:08

Japan to give $3.5-bln direct budget assistance to Ukraine in 2023

MOSCOW. April 14 (Interfax) - The Japanese government is planning to give $3.5 billion direct budget assistance to Ukraine in 2023 to fund priority social and humanitarian expenses.

The issue was discussed at a meeting of Japanese Finance Minister Shunichi Suzuki and his Ukrainian counterpart Sergei Marchenko on the sidelines of spring meetings of the International Monetary Fund and the World Bank in Washington, the Ukrainian media said with the reference to the press service for the Ukrainian Finance Ministry on Thursday.

"Ukraine highly appreciates the contribution of Japan, including systemic financial and humanitarian assistance. As it presides in the G7 in 2023, Japan demonstrates the principled leadership in supporting the issue on the agenda of international events and improving coordination of financial assistance for Ukraine," Marchenko said.

External financing plays a key role in Ukraine's macro-economic stability amid the crisis, he said.

While discussing Ukraine's recovery and reconstruction, Marchenko said that Kiev was counting on support from international partners and the private sector in the achievement of fast recovery targets in 2023.

Representatives of the Japanese Finance Ministry said at the meeting they were ready to support Ukraine's recovery, including, through potential joint projects with the Japan International Cooperation Agency (JICA).

They estimated Japan's soft-term financing of Ukraine since the end of February 2022 at $581 million.

Japan said earlier it was ready to allot $5 billion to Ukraine, including $1.5 billion to be allotted in the first quarter of 2024, as this year's budget demand for external financing had been practically met.

The JICA is a governmental agency providing technical assistance, grants and soft loans to foreign governments. As one of the biggest agencies in the world, it assists over 150 countries and serves as the sole agency in Japan rendering every kind of development aid.