Canada negotiates entry into EU's €90 billion Ukraine loan scheme

The European Commission announced that Canada is in technical discussions to become part of the EU's 90 billion euro loan programme for Ukraine, which covers about two-thirds of the country's financing requirements until the end of 2027. While the bloc welcomes Canada's interest, it reiterated that the country still needs to deliver a direct financial contribution to Kyiv. If Canada joins, its manufacturers would be allowed to compete for Ukrainian defence procurement on equal terms with EU and Ukrainian firms, expanding the pool of suppliers.

Canada follows the United Kingdom, which secured a similar agreement in July, and its participation could slightly reduce the EU's cost share, though it does not create new funding for Ukraine. President Volodymyr Zelensky has warned of a $27 billion shortfall in the 2026 budget, urging more third-country support. The next chance for Canada to announce direct aid may arise at the UN General Assembly in New York or at a Toronto summit on Ukrainian child abductions scheduled for late September.