Ukraine has received a $1.3 billion grant from Japan to support social expenditures, according to the Ministry of Finance.
The funding was provided through the World Bank’s PEACE in Ukraine project and is part of the G7’s $50 billion Extraordinary Revenue Acceleration (ERA) financing mechanism for Ukraine.
Follow our coverage of the war on the @Kyivpost_official.
This tranche is Japan’s second disbursement under the ERA initiative. The funds were directed to the Facilitation of Resources to Invest in Strengthening Ukraine (F.O.R.T.I.S.) multi-donor trust fund before moving to the state budget’s general fund.
In a Wednesday press release announcing the transaction, Ukraine’s Finance Minister Serhiy Marchenko said the funds would be used to reimburse social spending, including public-sector salaries, healthcare services and pensions.
“This is a significant contribution to Ukraine’s financial resilience and the timely fulfillment of social obligations,” Marchenko was quoted as saying in the ministry’s press release.
“Thanks to this support, total funding mobilized through the PEACE in Ukraine project has now surpassed $53 billion.”
In February 2026, Kyiv signed a $690.8 million ERA grant funded by Japan and Canada using frozen Russian assets. Japan contributed $544 million, marking its first use of the ERA instrument, which channels interest from Russia’s frozen assets to Ukraine, a country still heavily reliant on external financing.
Other Topics of Interest
Kernel Buys Back Enselco From Its Majority Shareholder for $348M
Kernel, Ukraine’s largest agricultural holding and sunflower producer, agreed to purchase the Enselco agrо holding for $348 million from Andriy Verevsky, its chair and majority shareholder.
According to the press release, Japan remains the second-largest donor country and the fourth-largest overall financial backer of Ukraine. Since February 2022, its total budgetary support has exceeded $10.7 billion, including more than $2.7 billion in grants.
Turning Russian assets into Ukrainian support
The ERA mechanism, agreed upon by G7 leaders at a June 2024 summit in Italy, provides Ukraine with loans it is not required to repay. Funds are repaid from profits on frozen Russian assets.
The political framework was set in mid-2024, with the UK making the first disbursements in early 2025.
The mechanism has become the primary source of Ukraine’s external funding in 2025. Of the record $52.4 billion in total foreign budgetary support Ukraine received last year, approximately 70% ($37.9 billion) was provided through ERA.
For 2026, Ukraine requires approximately $52 billion in external financing to ensure budget stability. Most of this funding gap is expected to be filled by ERA disbursements, EU instruments, and bilateral support from partners.
On March 25, Marchenko said Ukraine had already raised over $5.5 billion in international funding in early 2026, with the latest tranche from Japan – alongside $1.4 billion in EU aid generated from Russia’s frozen assets – likely bringing the total above $8 billion.