Doing business
Geographically distant from us, however, Japan has demonstrated that it is the main political ally of Ukraine in Asia. The political steps taken by the Japanese government to support us in the war are truly unique. The uniqueness of the situation is that Japan is even changing some of its own strict rules in legislation to help our country.
Japan imposed the first sanctions against the aggressor in 2014, immediately after the start of the military attack and occupation of the Crimea and parts of eastern Ukraine. It was an important signal for the whole world, and Asia in particular: a country with a super-powerful economy that is a member of the Group of Seven openly declared its position in the conflict. In 2022, the Japanese government imposed sanctions on 73 russian entities,39 individuals and their collaborators. The sanctions include freezing of assets, restrictions on payments, capital transactions, a ban on the export of goods, etc.
Over the past eight years, Japan’s total financial support has amounted to $6.5 billion. There are several humanitarian projects that provide modern equipment to medical institutions.
Last year, the Japanese government provided over $1.6 billion of official financial and material assistance to Ukraine because of the full-scale invasion of russia. The Japanese government provided $95 million of aid to Ukraine to restore critical infrastructure. It also sent almost 70 tonnes of medicines and medical devices. In particular, portable ultrasound machines and artificial respiration devices.
In 2023, the Government of Japan will provide Ukraine with another $400 million that will be used to restore critical infrastructure and economic development. The intergovernmental agreement stipulates that these funds will be used to improve the efficiency of the following sectors: humanitarian demining equipment; transport services; power equipment and demolition waste management; water supply and sewage; medical and educational equipment; and support for the agricultural sector. In addition, the Government of Japan will provide $70 million in grant support for Ukraine’s recovery under the United Nations Development Programme.
It also plans to provide $7.6 billion in aid for post-war recovery and reconstruction of Ukraine.
The uniqueness of modern Ukrainian-Japanese relations also means that many things have to be said with the prefix “for the first time”:
Ukraine and Japan have agreed to cooperate in the field of digital transformation. For the first time, the Ministry of Digital Transformation of Ukraine, the State Service of Special Communications and the Ministry of Digitalisation of Japan have signed a trilateral memorandum of cooperation. The document sets out the basis for cooperation in cyber defence, innovation development and provides an opportunity to exchange experience in the development of e-government and IT industry.
Japan is not limited to purely utilitarian things. The state demonstrates solidarity at different, sometimes unexpected levels. For example, donations for Ukraine are collected in Buddhist temples where religious communities pray for peace in our country. And the Japanese government has decided to change the hieroglyphic spelling of the name Kyiv and other geographical names of Ukraine to the Ukrainian, rather than the previously used russian imperial spelling.
The development of mutually beneficial trade and economic cooperation also remains an important priority for both countries. Despite the decrease of exports by almost 90% in 2022 because of russia’s military aggression against Ukraine, Japan is an important trade partner of the region.
As of 2022, the volume of exports from Dnipropetrovsk region amounted to $367.6 thousand. The goods that are in greatest demand among Japanese consumers are aluminium and aluminium products, toys, leather goods, finished textiles, etc.
Export operations were carried out by 6 companies from Dnipropetrovsk region. The main exporters are enterprises of the metallurgical complex and the processing industry.
TOP-5 exporters (ranked by volume of exported products):
Imports of goods from Japan to Dnipropetrovsk region amounted to $19.6 million and decreased by 40% compared to 2021. Traditionally, the region purchased rubber, gum, land transport, machinery and equipment, ferrous metal products, etc.
Import operations were carried out by 169 importers.
TOP-5 importers (ranked by volume of imported products):
Import operations were mainly carried out by trade, metallurgical, processing and machine-building enterprises.
Source: information for the article was taken from https://armyinform.com.ua and other open online resources