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Canada in talks to join EU's €90 billion loan for Ukraine

Canada is negotiating with the European Union about contributing to the €90 billion loan for Ukraine, with both sides aiming to settle the size of Ottawa's participation before a Montreal summit at the end of October. Prime Minister Mark Carney, who signed a 100-year partnership with Kyiv last week, is using the talks to deepen ties with Europe amid strained trade relations with the United States.

Key points

  • Canada and the EU are in talks over a possible Canadian contribution to the €90 billion loan for Ukraine.
  • A decision on the size of the contribution is expected before a Montreal summit at the end of October.
  • The UK is currently the only non-EU state participating in the loan scheme.
  • Carney signed a 100-year partnership with President Zelensky last week; Zelensky says total agreements under it exceed US$2 billion.
  • Canada has already provided roughly C$6.5 billion (about US$4.7 billion) in military aid to Ukraine and pledged C$270 million for interceptor missiles.
  • Carney is due to meet European Commission President Ursula von der Leyen in Strasbourg and UK Prime Minister Andy Burnham in Liverpool this week.
  • The EU approved the €90 billion loan in April; Ukraine received its first €3.2 billion tranche at the end of June.

Why it matters

If Ottawa joins, it would become only the second non-EU participant in the loan scheme after the UK, widening the financial coalition behind Ukraine. The move is also part of Carney's broader push to diversify Canada's partnerships away from Washington and toward Europe at a time when Ottawa–US trade talks are stalled.

What happened

Canada and the European Union are in discussions about a possible Canadian financial contribution to the EU's €90 billion loan for Ukraine, according to the Financial Times. Prime Minister Mark Carney is set to travel to Europe this week, with meetings planned with European Commission President Ursula von der Leyen in Strasbourg and new UK Prime Minister Andy Burnham in Liverpool. Both sides want to agree on the size of Canada's contribution before a summit scheduled in Montreal at the end of October. The UK is currently the only non-EU state participating in the loan scheme. Last week, Carney and President Volodymyr Zelensky signed a 100-year partnership agreement, which Zelensky said includes deals worth more than US$2 billion, covering air defence, Patriot missiles, F-16 ammunition and joint drone production.

How Ukrainian sources describe it

Ukrainian outlets emphasize the scale of the recently signed 100-year partnership, highlighting specific items such as Patriot missiles, F-16 ammunition and joint drone production, alongside Zelensky's claim that the package exceeds US$2 billion. They also detail the structure and timing of the EU loan — €45 billion each in 2026 and 2027, split between social budget support and defence — and frame a Canadian contribution as a natural extension of an already functioning financial pipeline to Kyiv.

How international sources describe it

International coverage, led by the Financial Times and reflected in the Azerbaijani agency report, focuses on the geopolitical backdrop: Carney's effort to deepen ties with Europe and reduce Canadian dependence on the United States. The reporting underlines his planned meetings with von der Leyen and Burnham, as well as EU caution about Canada's proposed 'associate membership' format, which Brussels has not equated with the arrangements it has with Norway or Switzerland.

Background

The EU formally approved the €90 billion loan for Ukraine in April, with €45 billion to be disbursed in each of 2026 and 2027, split between social budget support (€16.7 billion in 2026) and defence needs (€28.3 billion in 2026). Ukraine received its first tranche of €3.2 billion at the end of June, with additional funds earmarked for drone production. Canada has already provided roughly C$6.5 billion (about US$4.7 billion) in military aid to Ukraine and pledged C$270 million for interceptor missiles. Ottawa–Washington trade talks effectively reached an impasse last month, and the EU has been cautious about Canada's proposed 'associate membership' format, given that Canadian standards historically align more closely with American than European norms because of Canada's dependence on the US market.