Canada in talks to join EU's Ukraine loan, but it still needs to donate to Kyiv, Brussels says

BRUSSELS, Belgium — The European Commission confirmed on Sept. 18 that Canada is in talks with the EU to participate in the bloc's 90 billion euro ($104 billion) loan to Ukraine, but reiterated that Canada also still needs to donate directly to Kyiv.

The 90 billion euro loan was finalized by EU countries in April and is designed to cover two-thirds of Ukraine's total financial needs until the end of 2027.

"Canada has expressed an interest in joining (the loan)... technical talks are still ongoing," European Commission spokesperson Balazs Ujvari told journalists at a press conference on Sept. 18.

The news comes amid deepening Canada-EU relations, and European Commission President Ursula von der Leyen announcing a plan to make Canada the bloc's first "associate member," in her State of the Union speech on Sept. 16.

Canada is the second country to negotiate such an agreement with the EU for the Ukraine Support Loan, after the U.K. did so in July.

In return for helping the EU with the loan's interest payments, manufacturers from London and Ottawa can participate in Ukraine's defense procurement on the same terms as EU and Ukrainian companies.

It also "gives Ukraine the opportunity to look at a broader industrial base," Ujvari said.

While Canada's participation in the 90 billion loan may slightly reduce Europe's cost burden, it does not unlock additional financing for Ukraine, and President Volodymyr Zelensky has already identified a $27 billion shortfall in the 2026 budget.

Ukrainian and EU politicians have each made clear that they expect third countries to step up their support.

So far, only Norway has answered the call, with a $9 billion pledge for 2027.

"It is important our like-minded partners also follow suit, including Canada and the U.K.," Ujvari said, in response to a question from the Kyiv Independent.

He also noted that the EU raises this need directly and regularly with London and Ottawa.

Canada is still expected to announce direct financial support for Kyiv at some point, but exactly when remains unclear.

The next opportunities to do so could come as world leaders meet in New York for the United Nations General Assembly, or around the Sept. 28 summit in Toronto focused on the return of Ukrainian children abducted by Russia.