Canada wants to join EU loan for Ukraine of €90 billion
Canada is negotiating financial participation in the European Union's €90 billion loan program for Ukraine. Ottawa and Brussels expect to determine the possible size of the Canadian contribution before the EU-Canada summit scheduled for late October in Montreal.
Financial Times reports on the negotiations, citing informed sources. If the sides agree, Canada will join the Ukraine Support Loan—the EU's main lending mechanism for financing Ukraine's budgetary and defense needs in 2026-2027.
The program's total volume is €90 billion. Approximately €60 billion is earmarked for defense procurement and development of Ukraine's defense-industrial base, and another €30 billion for budget support and state operations. In 2026, Ukraine may receive up to €45 billion from the total package. The European Commission has already begun disbursements under the program, transferring the first €3.2 billion of macro-financial assistance in June.
According to FT, the United Kingdom is currently the only non-EU country that has joined this mechanism. Canada's participation would not only strengthen funding for Ukraine but also be part of a broader rapprochement between Ottawa and the European Union.
Canadian Prime Minister Mark Carney is trying to diversify the country's foreign-economic and political ties amid deteriorating relations with the United States. Canada and the EU are simultaneously discussing deepening cooperation in trade, critical raw materials, energy, digital affairs, and artificial intelligence.
The new loan negotiations come days after Carney and President Volodymyr Zelenskyy signed a Declaration on a 100-Year Partnership between Canada and Ukraine. It provides for deepening cooperation in defense, economic recovery, and investment, as well as establishing a long-term strategic partnership between the countries.
Canada is also expanding direct defense support for Ukraine. During Zelenskyy's September visit, the sides agreed, among other things, to deepen cooperation in the production of drones, counter-drone means, ammunition, and electronic warfare systems.
No final decision has yet been made on the amount and format of Canada's participation in the EU loan. The sides want to agree on the main parameters before the meeting in Montreal at the end of October.
Based on: Financial Times, European Commission, Government of Canada
