Canada in talks to join EU's Ukraine loan, but it still needs to donate to Kyiv, Brussels says
Even if Canada helps the EU with its loan to Ukraine, it still needs to follow Norway's lead and provide direct financial support to Ukraine, said European Commission spokesperson Balazs Ujvari.
BRUSSELS, Belgium — The European Commission announced on September 18 that Canada is in discussions to join the EU's 90 billion euro ($104 billion) loan to Ukraine, but stressed that Canada must still provide direct aid to Kyiv as well. The loan, finalized by EU countries in April, aims to cover two-thirds of Ukraine's total financial requirements until the end of 2027.
Canada has shown interest in participating in the loan, with ongoing technical talks taking place, according to a European Commission spokesperson, Balazs Ujvari, speaking at a press conference on September 18.
This development comes amidst the strengthening of Canada-EU relations and the announcement by European Commission President Ursula von der Leyen during her State of the Union speech on September 16 that Canada would become the bloc's first associate member. Canada is the second nation to negotiate such an agreement with the EU for the Ukraine Support Loan, following the U.K.'s negotiations in July.
In return for contributing to the loan's interest payments, Canadian manufacturers will have the opportunity to engage in Ukraine's defense procurement at the same terms as EU and Ukrainian companies. This move could also enable Ukraine to broaden its industrial base.
While Canada's involvement may alleviate some of the financial burden on the EU, it does not provide additional funding for Ukraine. President Volodymyr Zelensky has highlighted a $27 billion shortfall in the 2026 budget, and both Ukrainian and EU politicians have emphasized the need for third countries to increase their support.
As of now, only Norway has responded to the call, pledging $9 billion for 2027. The EU has urged like-minded partners, including Canada and the U.K., to follow suit. Ujvari affirmed that the EU raises this requirement directly and consistently with London and Ottawa. Canada is anticipated to announce direct financial assistance to Kyiv at some point, although the timing remains uncertain.
Potential opportunities for Canada to pledge funds could arise during the United Nations General Assembly in New York or the September 28 summit in Toronto, which focuses on the return of Ukrainian children abducted by Russia.
Written by urgent.news from Kyiv Independent's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
