Japan Denies Opposition to European Plan for Seizing Frozen Russian Assets

Japan Denies Reports of Rejecting EU Proposal on Frozen Russian Assets

Japan’s Ministry of Finance has firmly rejected media reports claiming that Tokyo had turned down the European Union’s proposal to seize frozen Russian assets, according to Reuters.

In a statement on December 9, Atsushi Mimura, Japan’s Deputy Finance Minister for International Affairs, described the reports as “completely false.” Mimura emphasized that Japan has consistently acted in Ukraine’s best interests, maintaining alignment with its national priorities. He added that this position reflects Japan’s strategic considerations, noting that “Japan could one day face a similar situation in East Asia.”

The clarification came in response to a Politico report published the same day, which claimed that Japan had opted not to support the European Union’s initiative to use frozen Russian state assets to benefit Ukraine. According to that report, Tokyo declined the EU’s request during a virtual meeting of G7 finance ministers to replicate Brussels’ plan for channeling the monetary value of Russian sovereign assets held at the Euroclear clearing house in Belgium to Ukraine.

The Politico report suggested that Japan’s refusal stemmed from legal constraints and an inability to utilize approximately $30 billion worth of frozen Russian assets held within the country. Several officials reportedly indicated that Japan’s decision was also influenced by the United States’ position on the matter, with Tokyo reluctant to act against the preferences of its key security ally.

This development comes at a critical time when Western nations are debating how to leverage frozen Russian assets to support Ukraine’s defense and reconstruction efforts. Since Russia’s full-scale invasion of Ukraine in February 2022, Western countries have frozen approximately $300 billion in Russian central bank assets, with significant portions held in European financial institutions.

The G7 finance ministers had previously expressed support for utilizing these frozen Russian assets to fund reparations for Ukraine. In a joint statement, they committed to continuing collaborative efforts to explore various financing options to support Ukraine, potentially including the use of the full value of Russian sovereign assets frozen in their jurisdictions until Russia pays reparations. Their stated goal is to end the conflict and establish what they describe as a “just and lasting peace in Ukraine.”

Financial experts note that the legal complexities surrounding the seizure of sovereign assets have created significant challenges for this approach. Under international law, state assets typically enjoy immunity from enforcement measures by foreign jurisdictions, making outright confiscation legally problematic without establishing new precedents.

The debate over Russian assets highlights the broader geopolitical considerations at play. Japan’s unique position in East Asia, with territorial disputes involving Russia and facing regional security challenges from China and North Korea, creates a complex calculus for Tokyo’s foreign policy decisions.

For Ukraine, securing stable financial support remains crucial for both its immediate defense needs and long-term reconstruction planning. The World Bank has estimated that Ukraine’s reconstruction costs could exceed $400 billion, making the potential use of frozen Russian assets an attractive option for Western supporters seeking to offset these enormous expenses.

As the G7 continues discussions on this matter, the international community watches closely to see whether a consensus approach to Russian assets will emerge, or if individual nations will pursue separate paths based on their specific legal frameworks and strategic interests.