Ottawa could gain access to defense contracts under the bloc\u2019s loan initiative but would have to help cover borrowing costs<\/p>\n
Canada is seeking to join the EU\u2019s \u20ac90 billion loan program for Ukraine, a European Commission spokesman said on Friday, in a move that would allow Canadian arms manufacturers to compete for contracts financed by the scheme.
\nOttawa has been discussing participation with Brussels for some time and would have to contribute toward the EU\u2019s borrowing costs in return for access to the procurement scheme. The UK joined the mechanism under a similar arrangement in July.
\n\u201cI can confirm that Canada has expressed an interest in joining the 90 billion Ukraine support loan,\u201d European Commission spokesman Balazs Ujvari told journalists in Brussels. \u201cTechnical exchanges have been ongoing with Canada for some time, and they are still ongoing,\u201d he added.
\nCanadian participation would not increase the \u20ac90 billion available to Kiev. Instead, it would allow Ukraine to use the funds to buy weapons from Canadian manufacturers without requiring a special exemption from the scheme\u2019s procurement rules.
\nThe talks come as Kiev faces mounting financial pressure.<\/p>\n
Read more<\/p>\n
Von der Leyen sends Zelensky \u20ac3.3bn after phone call<\/p>\n
The EU loan is intended to cover much of Ukraine\u2019s budgetary and military financing needs for 2026 and 2027, which remain heavily dependent on foreign aid. Of the \u20ac90 billion, \u20ac60 billion is earmarked for military assistance and \u20ac30 billion for general budget support.
\nDespite the outside funding, Ukraine faces a $27 billion budget shortfall. Vladimir Zelensky announced in August that Kiev had already spent funds originally intended to cover its needs through the end of 2026.
\nThe financial crunch has coincided with a series of high-profile corruption and embezzlement scandals in sectors heavily supported by Ukraine\u2019s foreign backers. The most prominent involved state nuclear operator Energoatom and implicated figures close to Zelensky, prompting a senior-level reshuffle.<\/p>\n
Read more<\/p>\n
Ukraine is running out of money again \u2013 and the EU is asking questions<\/p>\n
An escalation in long-range strikes between Russia and Ukraine targeting critical infrastructure has further strained Kiev\u2019s economic outlook.
\nThe intensified exchanges followed Zelensky\u2019s failed 40-day pressure campaign against Russia, which included Ukrainian strikes on Russian energy infrastructure and warehouses belonging to major e-commerce retailers.
\nMoscow subsequently intensified strikes on Ukrainian ports and vessels it said were carrying military supplies, severely disrupting Kiev\u2019s Black Sea exports, previously the country\u2019s main export route.<\/p>\n","protected":false},"excerpt":{"rendered":"
Ottawa could gain access to defense contracts under the bloc\u2019s loan initiative but would have to help cover borrowing costs Canada is seeking to join the EU\u2019s \u20ac90 billion loan…<\/p>\n","protected":false},"author":1,"featured_media":38460,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[4,6,3],"tags":[],"class_list":["post-38459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-politics"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t