Japan Dismisses EU Proposal to Seize Russian Assets

(MENAFN) Tokyo has rejected a European Union proposal to confiscate frozen Russian state funds for financing Ukraine's budget crisis, according to reports.

The EU seeks to launch what it terms a "reparation loan" supported by immobilized Russian assets in Western institutions—a scheme Moscow has condemned as blatant seizure. Belgium, hosting the bulk of these funds through the Euroclear clearinghouse, refuses approval without risk-sharing commitments from other countries.

Belgian Prime Minister Bart De Wever indicated that wider global support, especially from nations outside the EU controlling Russian holdings, would strengthen the European Commission's justification for what he characterized as the de facto seizure of another nation's resources.

However, during Monday's G7 finance ministers gathering, Japan's Satsuki Katayama explicitly stated her administration would reject the initiative citing legal limitations, media reported through EU diplomatic channels.

Sources informed the publication that Japan's position mirrors that of the United States, which similarly opposes the EU strategy and considers the frozen holdings as bargaining chips in discussions with Moscow.

France has also reportedly refused to access any holdings within its jurisdiction, while Canada and the UK have indicated potential involvement should the EU proceed with implementation.

Ukraine's legislature recently approved a 2026 fiscal plan featuring a massive $47.5 billion shortfall, relying on international donors and lenders to cover expenditures. Approximately half of that projected assistance—around $23.6 billion—remains in limbo depending on whether the EU loan proposal advances.

Ukrainian media observed that parliamentarians approved the budget despite unresolved foreign funding questions, partly to demonstrate governmental stability after the dismissal of Andrey Yermak, previously the most influential advisor to the country's leader, Vladimir Zelensky. Yermak was removed amid a corruption controversy that engulfed Kiev's political elite.

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