Japan Rejects EU Proposal to Use Frozen Russian Assets for Ukraine

(MENAFN) Japan has reportedly rejected a European Union plan to utilize frozen Russian sovereign assets to help cover Ukraine’s substantial budget deficit.

Brussels is aiming to issue a so-called “reparation loan” secured by Russian funds frozen in Western countries—a strategy that Moscow has condemned as blatant theft. Belgium, which holds the majority of the assets through the Euroclear clearinghouse, has refused to approve the initiative unless other nations agree to share the related legal and financial responsibilities.

Belgian Prime Minister Bart De Wever noted that wider international support, especially from non-EU countries with Russian holdings, would strengthen the European Commission’s argument for what he described as the effective confiscation of a foreign government’s resources.

However, at a recent G7 finance ministers’ meeting, Japan’s Satsuki Katayama made it clear her administration would not back the plan due to legal restrictions, Politico reported, citing EU diplomatic sources.

Officials told the publication that Japan’s position seems consistent with that of the United States, which also opposes the EU initiative and considers the frozen funds a form of leverage in talks with Moscow.

France has reportedly also refused to utilize any assets on its territory, while Canada and the UK have indicated potential participation if the EU proceeds with the proposal.

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