cross-posted from: https://scribe.disroot.org/post/7110362
Ukraine’s Finance Ministry and the World Bank signed a grant agreement on Thursday worth $690.8 million, funded by Japan and Canada through proceeds generated from frozen Russian assets under an Extraordinary Revenue Acceleration (ERA) Loan.
Signed in autumn 2024, the ERA Loan is the key macrofinancial assistance for Ukraine, helping Kyiv to sustain core state functions during wartime. The tranche represents Canada’s final contribution under the ERA instrument and Japan’s first disbursement.
The funding was secured under the “Supporting Public Expenditures for Sustainable Public Administration in Ukraine” program, known as PEACE in Ukraine, a mechanism set up by the World Bank and Ukraine’s Ministry of Finance.
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According to the finance ministry, the grant will be directed to Ukraine’s general budget fund and used to reimburse critical state expenditure, including pension payments and social assistance programs.
These include housing and utility subsidies, which have grown in importance as millions of Ukrainians face reduced incomes amid the war and repeated attacks on civilian infrastructure.
Of the total $690.8 million package, $544 million stems from the Japanese government, $146 million from Canada, and $800,000 from a multi-donor trust fund established under the PEACE in Ukraine program.
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Following the latest disbursement, total funding mobilized through the PEACE in Ukraine program will reach $51.7 billion, the finance ministry reported.
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The ERA Loan is a crucial component of Ukraine’s 2025 financial strategy, backed by profits generated from frozen Russian assets held in Europe.
The program redirects interest earnings from Russia’s immobilized assets toward Ukraine to compensate for the destruction caused by the war. The ERA Loan provides $50 billion in financial assistance that Ukraine will not have to repay.
This initiative was negotiated between Ukraine, the EU, the US, Canada, Japan, and the UK, with joint agreements signed in late 2024. These countries remain the ERA’s major stakeholders.
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Wasn’t the EU considering doing something similar a while ago but then they eventually decided against it?
Nope, don’t like this. One violation of international law should not justify another. The fact that Canada will engage in this towards a country like Russia while not doing the same to a country like Israel is just further contributing to the breakdown in international law. This is just making shit up to do what you want. Law needs to be applied equally for it to have any meaning. If Canada, Japan and other nations want to apply this to everyone engaged in wars of aggression, then that would at least be something. If not, it’s just more damage to international law. This is an escalation in a series of bad precedents. Carney cannot simultaneously maintain the image of Canada as a reliable partner while also yoloing into the post-rules based order by throwing international law out the window to suit geopolitical interests.
