Canada is taking part with an initial contribution of €500 million in the Ukraine loan that the European Union has set up. That was said by Canada’s Prime Minister Mark Carney at a joint press conference with the President of the European Council, António Costa, in Montreal.
Asked how Canada intended to shape its participation in the loan, Carney said, according to Ukrinform: “Our first contribution will be €500 million.” The loan was an “important and effective mechanism that uses frozen assets to provide Ukraine with urgently needed assistance”. It was also about “substantial support for Ukraine’s defence and reconstruction”. They had also discussed Ukraine’s broader financial and security needs.
Costa thanked Canada for the decision to join the loan. “This is a strong signal of our long-term shared commitment to Ukraine,” he said, according to Ukrinform.
The mechanism has a volume of €90 billion. Canada’s participation also enables Ukraine to buy military equipment from Canadian defence companies with EU funds, according to a background paper by the Canadian government cited by the Kyiv Independent. Canada had previously negotiated joining the mechanism and is expected to announce further direct financial aid for Kyiv.
According to the Kyiv Independent, Kyiv expects a funding gap of at least €70 billion for the coming year, even after deducting €45 billion that the EU already intends to pay out. According to its report, the European Commission and the 27 EU states are also discussing this gap; there is hope that the bloc will announce additional aid beyond the €45 billion by the end of the year.
Canada’s contribution joins pledges from other allies: according to the Kyiv Independent, Norway pledged $9 billion for 2027 on 7 October, and the United Kingdom announced $13 billion on 28 October – the largest pledge in its history.
