Canada’s Budget to Spur Business Participation in Ukraine’s Reconstruction
Canada’s federal government plans to incentivize domestic businesses to take part in Ukraine’s post-war reconstruction, allocating CAD $2 billion (approximately US $1.5 billion) through the country’s Export Development Agency to deepen international economic cooperation.
The Gaze reports this, referring to the draft federal budget submitted to Parliament.
The new financial mechanism will support Canadian exporters in key sectors such as infrastructure and clean technologies, helping them access projects in rapidly growing economies, including those in the Indo-Pacific region and Ukraine’s critical infrastructure recovery.
“The new funding framework will empower exporters to expand into emerging markets and contribute to rebuilding essential systems in Ukraine,” the document states.
The budget also outlines plans for a CAD $2 billion preferential trade package aimed at encouraging global partners to “buy Canadian,” fostering new commercial opportunities abroad while reinforcing Canada’s role in global reconstruction efforts.
By coupling export incentives with international reconstruction efforts, Canada positions itself as both an economic partner and a long-term ally in Ukraine’s rebuilding process.
In addition, Canada is set to make one of its largest defense investments in decades, with the federal government planning to allocate CAD $81.1 billion (approximately US $60 billion) over the next five years to modernize and strengthen its Armed Forces.
The funds will be directed toward rebuilding, rearming, and expanding the capabilities of the Canadian Armed Forces (CAF). The plan marks a major step in Ottawa’s broader effort to reinforce national security and deepen cooperation with NATO allies amid global instability.
Of the total amount, CAD $6.2 billion (around US $4.5 billion) will go toward expanding Canada’s defense partnerships, including increased military assistance to Ukraine and the scaling up of joint training and international programs.
Another CAD $2.7 billion (US $2 billion) will be allocated over the next two years to support Operation Reassurance, Canada’s key NATO mission in Latvia that deters potential Russian threat.
As The Gaze reported earlier, Canada is allocating approximately CAD 3 million (UAH 92 million) to support the implementation of projects under the Tallinn Mechanism to strengthen Ukraine's digital security and critical infrastructure protection.