Japan to allocate up to $150M to support Ukrainian economy

The Japan Bank for International Cooperation (JBIC) will provide up to $150 million to the Black Sea Trade and Development Bank (BSTDB) for reconstruction and economic development projects in Ukraine, First Deputy Prime Minister - Economy Minister Yuliia Svyrydenko wrote in social networks, Report informs referring to Interfax.

“Cooperation between Ukraine and Japan is getting even closer. During the Tokyo Economic Development Conference, 56 documents were signed to deepen our partnership and attract hundreds of millions of US dollars for the reconstruction of Ukraine (...) JBIC will provide a loan of $150 million to support Ukrainian private sector through the Black Sea Trade and Development Bank,” she noted.

The funds will be used for already approved projects.

The agreement between JBIC and the BSTDB will strengthen cooperation in the field of agriculture, processing industry, transport and logistics, digital infrastructure and medicine in Ukraine. In particular, renewable energy projects will be of particular importance, the economy minister noted.

In addition, the Nippon Export and Investment Insurance (NEXI) agency has launched a new program for Ukraine to cover investment and trade risks worth 1.25 billion euros, she noted. It will consist of two parts: 937.5 million euros for insuring the investments of Japanese companies (for five years) and 312.5 million euros of credit for the export of Japanese goods and services (for two years).

The Japan International Cooperation Agency (JICA) is expected to allocate about $20 million to the Ukrainian private investment fund Horizon Capital.