By Canadian Press

Ottawa eyeing Ukrainian partnership, EU loans for defence equipment, minister says

Jun 26, 2025 | 9:29 AM

OTTAWA — Defence Minister David McGuinty says the federal government is weighing whether to follow in the footsteps of several European nations by forging a new defence co-production deal with Ukraine for military equipment.

McGuinty says the idea is under “active consideration” by the Department of National Defence and the Canadian Armed Forces.

Ukraine has become a world leader in combat drone technology over the course of its war with Russia, and countries such as the U.K. and Denmark have announced plans for co-operative equipment production projects with Kyiv.

McGuinty made the comments while speaking to Canadian reporters on a call from the embassy in Riga, Latvia, capping off his trip to Europe this week.

Prime Minister Mark Carney announced a massive new defence spending commitment at the NATO summit in The Hague this week and said in Brussels that Canada and the European Union will negotiate a new security and defence procurement partnership.

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McGuinty says Canada needs to be able to leverage European loans through that partnership and that his government intends to join up with European nations on bulk purchasing — something he says will save money on defence procurement.

This report by The Canadian Press was first published June 26, 2025.

Kyle Duggan, The Canadian Press