The Japan Bank for International Cooperation (JBIC) has signed a new memorandum of understanding with the European Investment Bank (EIB) that points their joint work at two areas: economic security, including critical-mineral supply chains, and Ukraine reconstruction. JBIC said it signed the memorandum on the 15th, on the occasion of the IMF-World Bank annual meetings, with EIB President Nadia Calviño's institution as counterparty.
What the memorandum covers
JBIC describes the agreement as a step up from the relationship it has built with the EIB. It is meant to promote cooperation, including co-financing, on projects in which Japanese and European companies are expected to take part. The named fields are economic security, with supply-chain resilience for critical minerals given as the lead example, and Ukraine reconstruction.
The EIB is the European Union's public financial institution. JBIC's release describes it as providing long-term finance and technical assistance to projects that contribute to economic integration and balanced development inside and outside Europe.
Third agreement in eight years
The two lenders first signed a cooperation memorandum in October 2018 at the Japan-EU high-level dialogue on industry, trade and economy, aimed at joint work inside and outside the EU. In October 2021 they updated it to cover carbon neutrality, infrastructure and innovation. JBIC says it has since held continuing talks with the EIB at various levels to firm up areas of cooperation.
The new memorandum changes the priority list: critical minerals and Ukraine are now the stated focus. JBIC says it will keep working with overseas public financial institutions to create business opportunities for Japanese companies and to deepen Japan-EU economic ties.
What is not yet specified
JBIC's release names no projects, financing amounts or timetable, and it does not say how the co-financing would be structured.