Canada seeks to join €90 billion Ukraine loan as it deepens EU ties amid US trade war - FT

The two sides hope to agree on the size of Canada's contribution before an EU summit in Montreal at the end of October, according to people briefed on the talks.

The United Kingdom is currently the only non-EU country participating in the loan.

Carney is seeking to build closer ties with European allies as relations between Ottawa and Washington deteriorate. According to the FT, the Canadian prime minister wants to forge an alliance of liberal powers committed to the multilateral international order and sees support for Ukraine as one way to demonstrate Canada's commitment to Europe.

Carney is traveling to Europe this week and is due to meet European Commission President Ursula von der Leyen in Strasbourg on Wednesday.

Canada has already allocated C$6.5 billion ($4.7 billion) in military assistance to Ukraine. Last week, Carney and Ukrainian President Volodymyr Zelenskyy also signed a declaration establishing a 100-year partnership between the two countries.

The push for closer ties with Europe comes amid a worsening trade dispute between Canada and the United States. Carney has sought to diversify Canada's international relationships and reduce its reliance on its southern neighbor, which remains by far its largest trading partner.

Canada is also negotiating broader cooperation with the EU, including in trade, security, critical raw materials, energy, clean technologies, visa liberalization and financial systems.

“It’s my strong personal view that the international order will be rebuilt, but it will be rebuilt out of Europe,” Carney said at a summit in May.

The EU approved the €90 billion loan for Ukraine in April. The funding is intended to cover Ukraine's budgetary and defense needs in 2026 and 2027, with €60 billion earmarked for military assistance and roughly €30 billion for budget support.