Ukraine received $690 million in grants from Japan and Canada. Where will the money go

Ukraine received a grant from Japan and Canada worth $690 million under the G7 ERA mechanism through the World Bankʼs PEACE in Ukraine program.

The Ministry of Finance of Ukraine writes about this.

This is the first tranche from Japan and the last tranche from Canada, financed within the framework of the Extraordinary Revenue Acceleration for Ukraine mechanism of the G7 countries with a total volume of $50 billion.

The funds raised have been transferred to the general fund of the state budget of Ukraine and will be used for priority expenditures: pensions and social support programs for the population, including housing and communal subsidies.

Grant funding is provided through contributions from international partners:

• $544 million — contribution from the Japanese government;
• $146 million — Canadaʼs contribution;
• $0.8 million — funds from the Trust Fund of many donors of the PEACE in Ukraine project.

The implementation of the ERA mechanism began at the end of 2024. Canadaʼs total contribution under this initiative is 5 billion Canadian dollars (almost $3.6 billion), of which Ukraine received two previous tranches of 2.5 billion and 2.3 billion Canadian dollars in the spring and summer of 2025. Japanʼs contribution to the mechanism of financial support for Ukraine by the G7 countries is expected to be 471.9 billion Japanese yen (over $3 billion).

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