Ukraine to co-found defense bank aimed at financing weapons production
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Ukraine and eight partner countries plan to sign an agreement establishing a new international defense bank on Nov. 30, potentially opening another source of long-term financing for weapons production, the governments said in a joint statement published Oct. 29.
The Canada-led Defense, Security and Resilience Bank (DSRB) aims to begin operations in 2027. It would help governments finance their defense needs, and manufacturers expand production, with benefits tied to participation in the institution.
As Russia’s war drags on, Ukraine needs sustained funding to keep its military supplied. The proposed bank could give allies another way to help finance Ukraine’s defense over the long term, supporting weapons production and military purchases.
Canadian Finance Minister Francois-Philippe Champagne said on Oct. 26 that the bank would be headquartered in Canada, with a European hub in Luxembourg. Its mandate would cover industrial expansion, critical supply chains and eligible procurement, including financing gaps affecting smaller defense companies.
Reuters reported in August that the project was targeting about 100 billion euros ($111.3 billion) in capital: 20 billion euros ($22.3 billion) paid in and 80 billion euros ($89 billion) callable from members if required. The latest official statements do not specify a capital target or announce funding earmarked for Ukraine.
President Volodymyr Zelensky confirmed Canada's invitation for Ukraine to become a founding member back in July in a Telegram post following talks with Canadian Prime Minister Mark Carney.
“It will work to attract capital and develop defense-industrial capacity and technologies tested in real combat conditions,” Zelensky said.
Alongside Ukraine and Canada, the founding group includes Albania, Belgium, Greece, Latvia, Luxembourg, Romania and Turkey.
The announcements do not specify Ukraine's contribution, borrowing terms or potential allocation. The November signing would mark another step toward establishment, rather than the start of lending.
