Canada is holding talks with the European Union over the possibility of participating in a loan arranged by the bloc to support Ukraine, in a move aimed at strengthening ties between Ottawa and European capitals while reducing the country’s reliance on the United States, according to informed sources.
Canada and the European Union are discussing the size of Ottawa’s potential contribution to the loan, with an agreement expected to be reached before the EU-Canada summit scheduled to take place in Montreal at the end of October.
Britain is currently the only non-EU country participating in the provision of the loan, as Canada seeks to expand its cooperation with Europe amid strained relations between Ottawa and Washington.
Carney Pushes for Closer Ties With Europe
The Canadian initiative is part of Prime Minister Mark Carney’s broader effort to strengthen relations with Europe and diversify the country’s international partnerships, reducing its dependence on the United States, particularly amid growing difficulties in relations between Ottawa and Washington.
Carney is also seeking to build an alliance of liberal powers that support the multilateral international system, which he believes is facing increasing pressure and disruption as a result of policies pursued by U.S. President Donald Trump’s administration.
By participating in the European loan for Ukraine, the Canadian prime minister hopes to reaffirm his country’s commitment to supporting its European allies and strengthening cooperation with them on international issues.
Carney is scheduled to visit Strasbourg this week, where he will meet European Commission President Ursula von der Leyen, before traveling to Liverpool for talks with British Prime Minister Andy Burnham.
€90 Billion European Loan for Ukraine
The European Union and the Group of Seven countries, which includes Canada, have frozen around €300 billion in Russian assets, with approximately €180 billion of those assets held at Belgium-based Euroclear.
EU countries had previously failed to reach an agreement on confiscating the frozen Russian assets and using them as part of what was described as a “reparations loan” for Ukraine.
Instead, the bloc agreed to allocate €90 billion to Ukraine during 2026 and 2027 through a loan designed to support Kyiv as the war continues.
The move has drawn criticism from Rodion Miroshnik, a Russian Foreign Ministry ambassador-at-large, who criticized the allocation of the funds to Ukraine, arguing that Kyiv uses the money for “terrorism and crimes against civilians.”
