The U.S. and Japan have refused to finance Ukraine under the scheme proposed by the European Union – Politico

At a meeting of G7 finance ministers, the United States and Japan made it clear they would not be able to finance Ukraine under the scheme proposed by the European Union.

This is reported by Politico, citing European diplomats.

According to them, Tokyo refused to join the plan to use frozen Russian assets to issue a loan to Ukraine. Japan indicated that it cannot make use of the roughly $30 billion in Russian funds frozen on its territory.

At the same meeting, the U.S. stated it would reduce its support for Kyiv after transferring the final tranches of the loan agreed under the Joe Biden administration back in 2024.

Meanwhile, the G7 finance ministers said they would continue to work on options for financing support for Ukraine.

Their joint statement notes that they are discussing, among other things, the potential use of the full value of frozen Russian assets until Russia pays reparations.

At the same time, it is emphasized that any decisions will be taken “within national legal frameworks.”

The G7 countries also reaffirmed their support for reforms in Ukraine, including measures to reduce informal employment, combat corruption, and improve public administration, including in the state-owned enterprise sector.

The partners also expressed their readiness to support a new IMF program and declared their intention to increase pressure on Russia if peace talks fail.

According to European estimates, next year Ukraine will need to cover a budget deficit of €71.7 billion, and without new inflows the country will have to begin cutting spending as early as April.

Let us recall that in the recently adopted draft state budget of Ukraine for 2026, members of parliament tripled their own pay.