Politico reported the information.During Monday's G7 finance ministers meeting, Tokyo firmly rejected the EU's proposal to replicate its strategy of leveraging Russian sovereign assets—worth approximately €210 billion held in Belgian bank Euroclear—to provide financial support to Kyiv. Japanese officials indicated they cannot utilize the roughly $30 billion in frozen Russian assets on Japanese territory to issue loans to Ukraine, according to two EU diplomats familiar with the discussions.The European Commission is pressing member states to finalize an agreement on tapping up to €210 billion in sanctioned Russian funds before a crucial leaders' summit scheduled for December 18. However, Belgium has emerged as a major obstacle, expressing concerns about potential liability if Russia successfully recovers the seized assets.Belgian Prime Minister Bart De Wever has argued that broader participation from other G7 nations would mitigate the risk of Russian retaliation being focused solely on Belgium. Yet both the United States and Japan have refused to join the EU's initiative, leaving the bloc to shoulder Ukraine's substantial financing requirements alone.During the meeting, U.S. representatives announced they would discontinue support for Ukraine after distributing the final installments of a G7-coordinated loan negotiated under the Biden administration in 2024, according to an EU diplomat. This development comes as Ukraine faces a staggering budget deficit of €71.7 billion for next year, with public spending cuts looming in April without new funding.Japanese Finance Minister Satsuki Katayama cited legal constraints as the reason for rejecting the asset seizure plan, one EU diplomat reported. However, multiple officials suggested Japan's position aligns with U.S. opposition to the scheme, with Tokyo reluctant to contradict its critical ally.President Donald Trump has indicated plans to use the frozen Russian assets as leverage in negotiations with Vladimir Putin, proposing to return a portion to Russia while using the remainder to fund American investments in Ukraine rather than direct aid to Kyiv.Despite these setbacks, European Commission President Ursula von der Leyen reaffirmed her commitment to the proposal during Monday's meeting with Ukrainian President Volodymyr Zelenskyy. "Our Reparations Loan proposal is complex but at its core, it increases the cost of war for Russia," von der Leyen stated, joined by British Prime Minister Keir Starmer, French President Emmanuel Macron, and German Chancellor Friedrich Merz.In a positive development for von der Leyen, both the United Kingdom and Canada have expressed willingness to transfer Russian state assets held within their jurisdictions to Ukraine—contingent on the EU's plan moving forward. The issue is expected to dominate discussions during Friday's meeting between Starmer and De Wever.