Cooperation between Japan and Ukraine

On 19 February 2024, as part of the increasing cooperation between Japan and Ukraine, the Japan-Ukraine Conference for Promotion of Economic Growth and Reconstruction was held in Tokyo. During the conference, the governments and businesses of both countries (including our Ukrainian clients) signed over 50 agreements and memorandums that open opportunities for starting and developing businesses in Ukraine.

In view of Japan continuous support of Ukraine we closely monitor all developments in Japan-Ukraine economic relationship. We collaborate with number of Japanese governmental institutions and private companies and believe that would play an important role in rebuilding Ukraine.

Major achievements

• Our important client – Japan External Trade Organisation (JETRO) announced establishing a representative office in Kyiv. Additionally, JETRO has signed several Memorandums for business support in Ukraine, including a Memorandum with the EBRD for supporting small and medium-sized enterprises.
• The countries signed a new Convention for the Elimination of Double Taxation that will replace the existing convention and offer more favourable and flexible withholding tax rates.

Business and government cooperations

• The governments signed a Memorandum of Cooperation for Establishing the Joint Crediting Mechanism between Ukraine and Japan (JCM). The memorandum lays foundation for further development of JCM to support decarbonization efforts.
• Japan announced a $100 million grant to Ukraine, including the coverage for projects in energy services, transport, and humanitarian demining equipment areas.
• The Japanese state export credit agency NEXI launches new credit lines for overseas investment and export insurance to Ukraine.
• The Japan International Cooperation Agency (JICA) and the Ministry of Economy of Ukraine signed a Memorandum of Cooperation aimed at engaging the private sector in the recovery and reconstruction of Ukraine.
• The Japan Bank for International Cooperation (JBIC) will provide a $150 million loan to support recovery projects carried out by Ukrainian businesses.
• Deloitte has also helped to organize a number of meetings of Ukrainian government officials with Japanese businesses.

Businesses cooperations

• Rakuten Symphony, Inc., Sojitz Corporation, and PicoCELA Inc. have agreed to cooperate with Kyivstar PJSC to restore and develop Ukraine's digital infrastructure.
• GLOBAL SECURITY EXPERTS Inc. and DTEK have agreed to cooperate within vulnerability assessment and cybersecurity human resource development for power plant systems.
• KOMAIHALTEC. INC and NJSC Naftogaz signed a Memorandum for the joint development of wind power projects. Additionally, Sumitomo Corporation and Naftogaz agreed on the modernization of the combined heat and power plant.
• Sumitomo Corporation, Kawasaki Heavy Industries, Ltd., and the Gas Transmission System Operator of Ukraine signed a Memorandum on preparations for the modernization of gas compressor stations.

We will be glad to support you if you have questions regarding the cooperation with Japanese companies, as well as if you need any support with doing business in Ukraine or have investment and M&A initiatives.

If you have any questions or need advice, feel free to contact us.