Ukraine Receives $690M Grant From Japan and Canada Under ERA Mechanism

Ukraine has received a $690 million grant from Japan and Canada under the G7 ERA mechanism, with the funds provided through the World Bank’s PEACE in Ukraine program.

As reported by the Government Portal, this is the first tranche from Japan and the final tranche from Canada financed under the G7’s Extraordinary Revenue Acceleration for Ukraine (ERA) mechanism, which totals $50 billion. This was reported by LB.ua.

The funds have already been transferred to Ukraine’s state budget general fund and will be used to finance priority government expenditures, including pension payments and social support programs, such as housing and utility subsidies.

The grant funding is provided through contributions from international partners:

• $544 million — contribution from the Government of Japan;

• $146 million — contribution from Canada;

• $0.8 million — funds from the Multi-Donor Trust Fund of the PEACE in Ukraine project.

The ERA mechanism began implementation at the end of 2024. Canada’s total contribution under this initiative amounts to 5 billion Canadian dollars (nearly $3.6 billion), of which two previous tranches totaling 2.5 billion and 2.3 billion Canadian dollars were received by Ukraine in the spring and summer of 2025.

Japan’s contribution to the G7 financial support mechanism for Ukraine is expected to total 471.9 billion Japanese yen (over $3 billion).

In early February, the Ministry of Finance of Ukraine and the World Bank signed an agreement to provide $690.8 million in grant funding. At the time, it was stated that Ukraine would receive these funds from frozen Russian assets.