On 16-18 December, Deputy Minister of Finance of Ukraine Olga Zykova joined the working visit of the government delegation headed by the First Deputy Prime Minister of Ukraine - Minister of Economy of Ukraine Yuliia Svyrydenko to Japan. 

The delegation included representatives of the Ministry of Finance of Ukraine, the Ministry of Economy of Ukraine, the Ministry of Community Development, Territorial and Infrastructure Development of Ukraine and the Ministry of Health of Ukraine.

The Ukrainian delegation held a series of meetings with high-ranking officials of the Government of Japan, heads of Japanese organisations and leading companies. The key topic of discussion was the deepening of cooperation between the two countries, in particular in the economic sphere and recovery.    

During the meeting with Eisuke Mori, Chairman of the Japan-Ukraine Parliamentary Friendship Association, and representatives of all parliamentary parties, Japan's strong commitment to further support Ukraine was reaffirmed.

The Ukrainian side expressed gratitude for the unwavering bipartisan support of Ukraine by the Japanese Parliament: “The partnership between Ukraine and Japan is crucial in the context of wartime challenges. Budgetary support is of particular importance - from February 2022 to the end of this year, the total amount of funding will be about USD 8.5 billion. This assistance ensures the stability of basic public services, supports our recovery efforts and strengthens the economy in the most difficult times.”

In addition, the importance of continuing Japan's sanctions policy against russia was noted. 

Together with the Minister of Economy, Trade and Industry of Japan Yoji Muto, Minister for Foreign Affairs Takeshi Iwaya, Chief Cabinet Secretary Yoshimasa Hayashi, the parties discussed further priorities and mechanisms for the development of the Japan-Ukraine partnership.

Japan is the second largest donor country in terms of direct budget support among the countries of the world (after the United States) and the fourth among all international partners (after the EU, the US, and the IMF). 

Most of the funds were raised through the World Bank's mechanisms and systemic projects in Ukraine. Initiatives such as DPL, PEACE, INSPIRE, HEAL, ARISE, HOPE, THRIVE, RISE, SURGE are aimed at supporting key sectors of the economy and meeting the urgent needs of citizens in times of war. These include social assistance, healthcare, the agricultural sector, reconstruction, education, the private sector, and support for reforms.

The Japanese side noted that several areas of additional support for Ukraine are currently being considered. First of all, energy, continuation of humanitarian projects and demining. 

Regarding further cooperation between Ukraine and Japan in the financial sector, the parties discussed the G7's decision on the Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, which provides for the repayment of loans to Ukraine from the profits of the immobilised russian assets. The total amount from G7 is up to USD 50 billion.

“Japan's comprehensive assistance to Ukraine is unprecedented. I am convinced that the further work of the governments will contribute to the new achievements of the financial sector, in particular in providing the State Budget with the necessary resources. Japan, as one of the founders of the ERA mechanism, will ensure the attraction of the relevant funding for Ukraine in the next year,” the Deputy Minister of Finance said. 

Olga Zykova also drew the attention of the Japanese side to the threats posed by russia to the world financial system and the global economy due to the aggressor country's violation of FATF (Financial Action Task Force) standards: “The FATF should take more decisive action on the risks and threats posed by Russian financial crimes to the international community. In particular, by placing the Russian Federation on the ‘blacklist’ at the upcoming FATF plenary meeting in February 2025. We look forward to Japan's support in this context.”

During the meeting with President of the Japan International Cooperation Agency (JICA) Akihito Tanaka, the parties discussed the need to expand joint projects in priority areas, taking into account systematically growing and changing needs.

Since February 2022, JICA has provided budgetary assistance to Ukraine in the amount of USD 581 million, as well as launched the Emergency Recovery Programme (Phase 1, 2 and 3) grant programs totalling about USD 600 million.

The participants reviewed existing projects in Ukraine in which the Agency can participate. These include finance, infrastructure, energy, agriculture, humanitarian demining, environmental protection, healthcare, education, social services, digitalisation and industrial development. 

The Ukrainian delegation presented priority projects in Ukraine in which the Agency can participate. These include finance, energy, industry, infrastructure, agriculture, humanitarian demining, environmental protection, and digitalisation. 

Particular attention was paid to the importance of financing public projects in healthcare, education, and social services. In the context of supporting effective projects implementation, the Project Preparation Facility was mentioned. 

The Government of Ukraine also held a series of meetings in Tokyo with the Chairman of the «Keidanren» Committee, Chairman of the Board of Directors of «Marubeni» Corporation Fumiya Kokubu and heads of leading Japanese companies.

The main topic on the agenda is the integration of Japanese and Ukrainian businesses, as well as attracting new investments to Ukraine to support recovery and obtain guarantees for post-war reconstruction.

"Japan's experience in implementing recovery projects is extremely valuable for Ukraine. Further active involvement of Japanese companies in Ukraine and expansion of business support initiatives will contribute to the role of the private sector in further economic recovery and reconstruction of Ukraine," Olga Zykova said. 

The opening of the Japan External Trade Development Organisation (JETRO) office in Kyiv in October 2024 was also noted. This is a significant step in JETRO's future contributions to improving economic partnership between the two countries and supporting business.