Canada seeks to join €90 billion loan for Ukraine: What it could change
Mark Carney (photo: Getty Images)
Canadian Prime Minister Mark Carney's team is discussing joining the EU's €90 billion loan program. If an agreement is reached, Ukraine will have new opportunities to purchase weapons, according to Euronews.
Journalists learned that the EU and Canada are currently holding technical consultations.
If Ottawa joins the program, Ukraine can use the loan funds to buy weapons and ammunition from Canadian defense manufacturers.
Moreover, such purchases would not be subject to the "Made in Europe" requirement established for the loan program.
At the same time, Canada would have to pay up to €3 billion in interest on the loan. The final amount will depend on how actively Canadian companies use the program opportunities. Canada is still negotiating the specific terms of its participation.
Earlier, in July, the European Union approved the United Kingdom's participation in the loan program. This became possible after the country met three key conditions:
- Agreed to cover costs related to the loan
- Established a security and defense partnership with the EU
- Continued providing financial and military assistance to Ukraine.
The total loan is €90 billion. Of this, €60 billion is earmarked for military assistance, while another €30 billion is intended to support Ukraine's budget.
In 2026, €28.3 billion is planned for defense needs, while €16.7 billion will support Ukraine's budget.
The loan is planned to be repaid using proceeds from frozen Russian assets held in European banks.
Earlier, media reported that Canada was seeking a new format for closer ties with the EU that could provide the country with special status.
It later became known that the EU wanted to offer Canada the bloc's first-ever associate-member status.
Amid the latest developments, US President Donald Trump threatened tariffs against the EU if its alliance with Canada proved to be "hostile" toward the United States.
