Japan’s Loan to Ukraine Sparks Russian Accusations of Theft

Russia has sharply criticized Japan for providing a $3.3 billion loan to Ukraine, accusing Tokyo of “theft” and “treachery” for using proceeds from frozen Russian assets to fund the aid.

The loan, signed on April 18, is part of the G7’s Extraordinary Revenue Acceleration for Ukraine (ERA) programme, aimed at supporting Kyiv’s reconstruction efforts amid the ongoing war.

Loan Details and G7 Involvement

Japan’s agreement with Ukraine involves a loan of 471.9 billion yen ($3.3 billion), which will be repaid using proceeds from Russian assets frozen in the European Union due to the conflict in Ukraine.

These assets, valued at tens of billions of dollars, are central to the G7’s $50 billion initiative to bolster Ukraine’s recovery.

The move has drawn Russia’s ire, with Moscow viewing it as an illegitimate use of its sovereign funds.

Russia’s Strong Rebuke

Russian Foreign Ministry spokeswoman Maria Zakharova condemned Japan’s actions during a Moscow briefing, warning that such moves would further strain already tense Russia-Japan relations.

She described Tokyo’s actions as “extremely hostile” and “treacherous,” asserting they violate both legal and universal principles.

Zakharova dismissed Japan’s hope that the loan would not harm bilateral ties, declaring: “Such actions will certainly and inevitably have a negative impact on relations with Russia.”

Broader Diplomatic Fallout

The loan exacerbates existing tensions between Moscow and Tokyo, already strained by Japan’s support for Ukraine and its condemnation of Russian actions.

Russia recently indicated it sees no basis for advancing a long-stalled peace treaty with Japan to formally end World War Two hostilities, citing Tokyo’s “unfriendly” stance.

The dispute over four islands — known as the Kurils in Russia and the Northern Territories in Japan — continues to hinder diplomatic progress.