Japan and Canada will provide nearly $691 million to support the Ukrainian state budget and social payments. The funds will be transferred to the general fund of the State Budget shortly. This was announced by the Ministry of Finance, according to Rubrika. PromPolitInform reports.
As noted by the ministry, the Ministry of Finance of Ukraine and the World Bank signed a grant agreement for $690.8 million as part of the “Public Expenditure Support for Sustainable Governance in Ukraine” (PEACE in Ukraine) project.
The funds were raised through the G7 Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, which provides a total volume of $50 billion.
This is the first grant from Japan under the instrument and the final tranche from Canada. The grant funds will be provided through contributions from international partners:
$544 million – contribution from the Government of Japan;
$146 million is Canada’s contribution;
$0.8 million is funds from the PEACE in Ukraine Multi-Donor Trust Fund.
The grant funds will be used to reimburse key government expenditures, including pension payments, social assistance, and housing and utility subsidies.
The signing ceremony was attended by Minister of Finance of Ukraine Serhiy Marchenko, World Bank Regional Director for Eastern Europe Bob Som, Ambassador Extraordinary and Plenipotentiary of Japan Masashi Nakagome, and Deputy Chief of Mission of the Embassy of Canada in Ukraine Christian Roy.
Minister of Finance of Ukraine Serhiy Marchenko expressed gratitude to the international partners and emphasized that the grant will increase state budget revenues, reduce the need for external borrowing, strengthen macro-financial stability, and ensure timely social payments.
The PEACE in Ukraine project has been implemented since June 2022 in response to Russia’s full-scale armed aggression and aims to ensure the continued functioning of state institutions at the national and regional levels during martial law. Ukraine has begun receiving funds from partner countries under the ERA program. This is a G7 initiative under which Ukraine receives funds secured by revenues from frozen Russian assets. Overall, the G7 ERA initiative provides for $50 billion to be allocated to Ukraine, $20 billion of which will be provided by the European Union.
Ukraine received the first tranches of frozen Russian assets from the European Union in January 2025. Ukraine also received almost $1 billion from the United Kingdom, secured by revenues from Russian assets.
Additionally, the Canadian government sent Ukraine $1.7 billion under the G7 initiative.
Also on October 1, 2025, Ukraine received another tranche of macro-financial assistance from the EU in the amount of €4 billion under the ERA Loans mechanism. The funds are secured by revenues from the frozen assets of the Central Bank of Russia.
