Japan Becomes Ukraine’s Largest Donor with €1.25 Billion for Investors

by Roman Cheplyk
Monday, February 19, 2024
Japan Becomes Ukraine’s Largest Donor with €1.25 Billion for Investors

Japan has announced a significant support package of 1.25 billion euros aimed at backing Japanese investors in Ukraine, unveiled during the conference on economic development and recovery in Tokyo

This initiative places Japan as the forefront donor of budget aid to Ukraine in the early months of 2024. The support includes the establishment of a Japan Export Credit Agency (NEXI) program offering guarantees to Japanese investors and a credit line to promote the export of Japanese goods essential for Ukraine's reconstruction efforts. Additionally, discussions on enhancing trade liberalization and updating the investment protection agreement between the two nations were highlighted. Ukrainian Prime Minister Denys Shmyhal expressed gratitude for Japan's pledge of $4.5 billion in financial aid for the current year and the signing of a convention to avoid double taxation, easing business operations between Ukraine and Japan. Finance Minister of Ukraine, Serhiy Marchenko, anticipates an extra $1.8 billion from Japan in the first quarter, underscoring Japan's leadership in direct budget support to Ukraine with an external financing need of $37.3 billion for 2024. Japan's ongoing commitment to Ukraine's reconstruction and social protection reflects a deepening of bilateral cooperation and mutual support.

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