Japan Refuses to Use Frozen Russian Assets

Japan has rejected a proposal from the European Union to utilize frozen Russian assets for financing Ukraine. This information was reported by Politico, citing its sources.

Japan holds approximately $30 billion worth of Russian assets. During the G7 finance ministers' meeting on December 8, Tokyo clarified that it does not intend to use these assets for providing Kyiv with a "compensatory loan." According to a European diplomat, Japan's finance minister, Shunichi Suzuki, referred to legal uncertainties.

Several other sources also indicate that Japan's stance is linked to the position of the United States, which is also opposed to the use of frozen Russian assets, and Tokyo does not wish to disregard this. The idea of providing Ukraine with a "compensatory loan" backed by frozen Russian assets was proposed by European Commission President Ursula von der Leyen this fall.

Most of the central bank assets, around €260 billion, are held in the EU, but Belgian authorities, where a significant portion of the funds is stored, oppose this idea. Authorities in Belgium are concerned that if sanctions against Russia are lifted, Moscow could demand the funds, and Belgium would have to repay them.