Japan denies refusing EU proposal on confiscating frozen Russian assets
Japan has denied reports that it rejected a European Union proposal to join plans to confiscate frozen Russian assets.
This was reported by Reuters, Censor.NET informs.
The Japanese government on Tuesday dismissed media reports claiming it had turned down an EU proposal to join plans to use frozen Russian state assets to finance Ukraine.
"This is completely untrue," Deputy Minister of Finance for International Affairs Atsushi Mimura told reporters.
He added that "Japan has acted in the interests of Ukraine, taking into account its own national interests", as one day Japan itself may face a similar situation in East Asia.
He also commented on media reports that Japan’s Finance Minister Satsuki Katayama had allegedly ruled out using about $30 billion in frozen Russian assets to provide a loan to Ukraine, citing legal problems.
"Minister Katayama has never made such remarks. She said at the meeting that Japan is preparing to take concrete steps to support (Ukraine)," Mimura stated.
Background
Earlier, it was reported that Japan had refused to support the EU initiative to use frozen Russian state assets for the benefit of Ukraine. That decision derailed Brussels’ attempt to secure global backing for confiscation.
What is known about the "reparations loan" for Ukraine
- It should be recalled that at their October meeting, European Union leaders postponed a decision on using frozen Russian assets as collateral for a so-called "reparations loan" for Ukraine worth 140 billion euros ($163 billion). EU leaders plan to return to this issue at their meeting on 18–19 December.
- Belgium, where the bulk of these assets is held, opposed the European Commission’s proposal to use frozen Russian assets at the EU leaders’ meeting. The country fears legal and financial retaliation from Moscow and wants other EU states to share these risks.
- Earlier, European Commission President Ursula von der Leyen proposed using frozen Russian assets as collateral to provide Ukraine with "reparations loans". Formally, the sanctioned Russian assets would not be confiscated, but Ukraine would only start repaying these loans after Russia pays reparations.
- In response, Russian dictator Putin signed a decree effectively allowing fast-tracked expropriation of the assets of Western companies that have not yet left Russia.
- According to various estimates, the European Union’s "reparations loan" for Ukraine, backed by Russian assets, could amount to 130–140 billion euros. Its final size will be determined after the International Monetary Fund assesses Ukraine’s financing needs for 2026 and 2027.
- In total, more than 175 billion euros in cash from frozen Russian assets has now accumulated in Euroclear, which can be used to secure the new loan. But before the EU agrees to provide the reparations loan, it will want to repay the G7’s 45 billion euro ($50 billion) loan to Ukraine, agreed last year and meant to be serviced from profits on frozen Russian assets.
