Carney Commits Additional $2.5 Billion for Reconstruction of Ukraine as He Meets Zelenskyy

Prime Minister Mark Carney announced an additional $2.5 billion in “economic assistance” for Ukraine as he met with Ukrainian President Volodymyr Zelenskyy in Halifax on Dec. 27.

Canada has previously given nearly $22 billion in total to Ukraine since February 2022, including more than $6.5 billion in military assistance.

Zelenskyy’s stop in Halifax came on his way to Florida for a meeting with U.S. President Donald Trump over a proposed peace plan.

Carney said the additional funds would help Ukraine “unlock” financing from the International Monetary Fund, World Bank, and European Bank for Reconstruction and Development.

According to the Prime Minister’s Office (PMO), the money will enable the International Monetary Fund to lend an additional $8.4 billion to Ukraine as part of an extended financing program. It will also act as a loan guarantee of up to $322 million to the European Bank for Reconstruction and Development to support Ukraine’s gas imports and reinforce its energy security, the PMO said.

Canada’s financial support will also be used as a loan guarantee of up to $1.3 billion to the World Bank’s International Bank for Reconstruction and Development to support Ukraine reconstruction.

Additionally, Canada has extended and expanded debt service suspension for Ukraine for up to $1.5 billion in 2025/26.

The meeting between Carney and Zelenskyy came after the two spoke on the phone Dec. 26 and discussed the “latest developments” in the peace talks, according to the PMO.

During the call, Carney is said to have “commended” Zelenskyy for his “continued efforts” to secure peace for Ukraine.

Russia Strike

The two leaders spoke briefly to the media in Halifax before heading to a bilateral meeting. During the quick exchange, Carney mentioned an overnight strike on Ukraine by Russia.

Russia sent hundreds of missiles and drones to attack Kyiv and other parts of Ukraine, killing two people and injuring 46, including two children, according to authorities. About one-third of Kyiv was left without heat after the strikes, with an estimated 600,000 households without power in the city and surrounding areas.

The Russian Defense Ministry said on Dec. 27 that it carried out a “massive strike” overnight, saying it was in response to Ukraine’s attacks on “civilian objects” in Russia.

Carney called the Russian attack “barbarism” and said lasting peace required a “willing Russia.”

“The attack on Kyiv shows just how important it is that we stand with Ukraine during this difficult time,” Carney said as the two leaders met in Halifax.

Zelenskyy said Russia’s recent attack showed the need to continue air defence against Russia.

“We had good steps in diplomacy but we can’t live in the illusion that gives us the possibility to have less air defense with Russia, it does not work,” the Ukrainian leader said.

He said his country wants peace and to “stop this war.”

Zelenskyy also said he hoped he would have a “very important” and “very constructive” meeting with U.S. President Donald Trump.

Ukraine-US Meeting

A meeting between Zelenskyy and Trump is scheduled for Dec. 28 in Florida where the two leaders will discuss security guarantees for Ukraine and territorial issues, as well as a draft political framework for ending the conflict that Zelenskyy said was about 90 percent complete.

Trump has been trying to get a deal to end the almost four-year-long war.

Zelenskyy presented a 20-point draft peace plan earlier this week, something he described as the main framework for ending the war.

Tom Ozimek, The Canadian Press, and Reuters contributed to this report.