Japan inks $100mn loan accord with Ukraine to help it deal with economic crisis amid war

In a bid to help war-torn Ukraine combat the Russian aggression, Japan on Monday has inked a 13 billion Yens ($100 million) loan arrangement with Ukraine, promising financial aid as the nation struggles to recover from Russia's invasion. According to the Japan International Cooperation Agency (JICA), the assistance would be co-financed with the World Bank and would be included in the budget of the Ukrainian government. Further, these funds would not be used for military objectives in Ukraine. 

In addition to this, the loan would be used to promote ‘de-monopolization and anti-corruption institutions’, enhance ‘land and credit markets', and boost the ‘social safety net’, JICA noted. It is worth mentioning that this loan agreement was signed after Japanese Prime Minister Fumio Kishida announced in April that Japan would boost its total yen loans to Ukraine to $300 million. 

Officials remarks on the USD 100mn loan deal

Furthermore, this loan contract was signed online by JICA Head Akihiko Tanaka and Ukrainian Finance Minister Sergii Marchenko. During the signing ceremony, Tanaka said, “The invasion and humanitarian crisis is the greatest challenge faced this century to the international order, and commons values of democracy and the rule of law," Japan Today reported. While, Marchenko claimed that millions of Ukrainians are currently battling not just for their country's freedom, but also for Europe's security and the world's democratic principles.  

Apart from this, Japan had earlier agreed to send gas masks, hazmat suits, and drones to Ukraine to counter the mounting worries about Russian forces using chemical weapons. Japan has always been vocal about assisting Ukraine and has imposed severe sanctions against Russia since the commencement of the Russia Ukraine war on February 24.  

Japan imposed sanctions against Russia

Japan, which has condemned Russia for its unjustified invasion of Ukraine, has recently placed additional sanctions on the nation. As of May 10, over 130 individuals have been targeted in Japan's latest sanctions, including Russian Prime Minister Mikhail Mishustin, Deputy Security Council Secretary Rashid Nurgaliyev, LPR and DPR officials, and relatives of Russian businessman Gennady Timchenko, according to media reports. Japan's assets will be frozen as a result of the penalties. 

According to TASS, Japan has imposed additional export restrictions on Russian enterprises tied to the Russian defence sector. The Tactical Missile Armaments Corporation, as well as Almaz-Antey, are among 70 businesses added to the list. Semiconductors, maritime and aviation security devices, telecommunications equipment, and military items, including weapons, software, and oil refining machinery, are among the 300 products and technology prohibited from export. 

(Image: AP)