Canada seeks key role in Ukraine loan backed by frozen Russian assets
Photo: Canada wants to get closer to the EU (flickr)
Canada seeks to obtain a role as a mechanism for providing Ukraine with a loan backed by frozen Russian assets, according to the Financial Times.
Ottawa expects that participation in such a scheme would simultaneously strengthen support for Ukraine and deepen the country's relations with the European Union.
The initiative is being considered against the backdrop of ongoing discussions in Europe about how to use frozen Russian assets to financially support Ukraine.
As is known, after the start of the full-scale invasion by Russia, Western countries froze significant amounts of Russian state funds as part of sanctions.
Canada, meanwhile, seeks to coordinate its economic and financial support for Ukraine with European partners. One of Ottawa's goals is to strengthen ties with the EU.
This concerns Canada's possible participation in Ukraine's lending mechanism, which involves using the income or value of frozen Russian assets as a basis for financing.
The issue of using Russian assets remains one of the most complex for Western countries due to legal and financial risks. At the same time, European states continue to seek options that would allow directing funds to support Ukraine without creating additional risks for the financial system.
Canada is already one of the largest Western supporters of Ukraine and provides Kyiv with military, financial, and other assistance. Ottawa is now considering the possibility of more active participation in the European support mechanism.
According to the FT, such a step could simultaneously become a way for Canada to strengthen its role in supporting Ukraine and build closer relations with the EU.
Against the backdrop of deteriorating relations with the US, Canada is seeking a new format for rapprochement with the EU, which could include special status for the country.
Days ago, the European Commission stated that it is examining the issue of funding shortages in Ukraine. This is needed to "unfreeze" Russian assets in European accounts.
