Japan rejects EU proposal to use frozen Russian assets for Ukraine – Politico

Japan has rejected the European Union's proposal to join its plan to use frozen Russian assets for the benefit of Ukraine.

Source: Politico, Brussels-based politics and policy news organisation, citing its sources

Details: At Monday's meeting of G7 finance ministers, Tokyo rejected Brussels' request to support its plan to provide Ukraine with Russian sovereign assets held at the Belgian bank Euroclear.

This move has dashed the bloc's hopes of gaining global backing for the initiative.

Two EU diplomats familiar with the discussions told Politico that Japan had made it clear that it could not use the approximately US$30 billion in frozen Russian assets held on its territory to provide Ukraine with a loan.

An EU diplomat also told Politico that Satsuki Katayama, Minister of Finance of Japan, had ruled out the use of Russian assets due to legal issues.

However, several officials said that Japan's position is linked to US opposition to using Russian assets for Ukraine, suggesting Tokyo does not want to ignore its key ally.

Read also: EU is looking for funds for Ukraine: what options can replace the reparations loan?

Background:

• On 3 December, European Commission President Ursula von der Leyen announced two proposals on funding Ukraine in 2026 and 2027, one of which would use proceeds from frozen Russian assets in the EU to provide Ukraine with a reparations loan.
• Even before the new proposal from the European Commission was made public, Belgian Foreign Minister Maxime Prévot said it was absolutely unacceptable.
• Other EU countries are opposed to granting Belgium unlimited guarantees to release the loan for Ukraine.
• According to media reports, the UK government is ready to transfer £8 billion (over US$10.6 billion) in frozen Russian assets to support Ukraine.

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