Key facts
- Canada is in talks to join the EU's 90 billion euro loan to Ukraine.
- The EU loan to Ukraine was finalized in April and aims to cover two-thirds of Ukraine's financial needs until the end of 2027.
- Canada's participation would allow its manufacturers to join Ukraine's defense procurement on the same terms as EU and Ukrainian companies.
- The European Commission reiterated that Canada must also provide direct donations to Kyiv.
- The UK previously negotiated a similar agreement with the EU for the loan in July.
- Norway has pledged $9 billion for 2027 in direct support to Ukraine.
Canada is in discussions with the European Union to participate in the bloc's 90 billion euro loan package for Ukraine, the European Commission confirmed on September 18. While Canada has expressed interest, technical talks are ongoing, and the EU reiterated that direct financial contributions to Kyiv are still expected from Ottawa.
The EU's loan, finalized in April, is intended to cover a significant portion of Ukraine's financial needs through the end of 2027. Canada's potential involvement would allow its manufacturers to participate in Ukraine's defense procurement under the same conditions as EU and Ukrainian companies, potentially broadening Ukraine's industrial base. This move follows a similar agreement negotiated by the United Kingdom in July.
European Commission President Ursula von der Leyen recently proposed making Canada the EU's first "associate member," signaling deepening relations between the two.
However, the European Commission stressed that Canada's participation in the loan does not unlock additional financing for Ukraine, which faces a $27 billion shortfall in its 2026 budget. Officials noted that like-minded partners, including Canada and the UK, are expected to increase their support, with Norway being the only country so far to answer the call with a $9 billion pledge for 2027. The EU regularly communicates this need to both London and Ottawa. The timing of Canada's expected direct financial support remains unclear, with potential opportunities arising during the United Nations General Assembly or a summit in Toronto focused on abducted Ukrainian children.