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Minister of Foreign Affairs appearance before the Standing Committee on Foreign Affairs and International Development (FAAE) on Nord Stream 1 Gas Turbine

2022-08-04

Table of Contents

  1. Scenario Note
  2. Opening Remarks (MINA and Minister Wilkinson)
  3. FAAE Members’ Biographies
  4. Sanctions in Response to the Russian Invasion of Ukraine (including recent exemptions)
  5. Support to Ukraine
  6. Reinforcing Eastern Flank Allies
  7. Export Controls – General
  8. Canada’s Sanctions Regime (including the intent laid out in Budget 2022 to strengthen it)
  9. NATO
  10. Russia
  11. Lethal Aid/Military Contributions to Ukraine
  12. War Crimes committed by Russian Forces in Ukraine (including work by Canada to refer them to the ICJ and ICC)
  13. Canada-Germany Bilateral/Commercial Relations
  14. European Energy Security (NRCan)
  15. Value of Russian Assets seized in Canada
  16. Nord Stream 1 Turbine – Chronology / Key Quotes (NRCan)
  17. Additional Questions & Answers (NRCan)
  18. Additional Questions & Answers (GAC)

Meeting scenario

Opening Remarks (MINA and Minister Wilkinson)

Motion to appear – Passed July 15, 2022

That, pursuant to Standing Order 108(2), the Standing Committee on Foreign Affairs and International Development undertake a study to examine the government’s decision to circumvent Canadian sanctions to allow the export of Gazprom turbines; that the committee determines the number of meetings required to carry out this study; that the Minister of Natural Resources and Minister of Foreign Affairs appear before the committee, along with officials from their respective departments, no later than July 22nd, 2022 based on availability, noting the urgency of the situation; that representatives from the Ukrainian Canadian Congress, the Ambassador of Ukraine to Canada, Ambassador of Germany to Canada, Ambassador of the European Union to Canada be invited to appear before the committee; and that committee members submit lists of additional witnesses.

Issue specific context

Positions of the Foreign Affairs Critics on the Nord Stream 1 gas turbine:

Michael Chong, CPC

Stéphane Bergeron, BQ

Heather McPherson, NDP

Committee context

First Round

Second Round

Committee membership & interest – See binder tab 3 for full bios

Previous appearance

Date: July 18, 2022

Speaking notes for the Honourable Jonathan Wilkinson, Canada’s Minister of Natural Resources, for an appearance before the Standing Committee on Foreign Affairs and International Development Natural Resources on the conflict in Ukraine

Words: 880

Delivery Time: Est. 5 minutes @ 160 wpm

I welcome the opportunity to join Minister Joly to discuss this serious matter: Russia’s brutal assault on the Ukrainian people, and its continued weaponization of energy against our European allies.

We strongly support Ukraine’s heroic defence against Russia’s illegal aggression. My heart has been with Ukraine and its people every single day since this war began.

The unity of NATO members has resulted in robust sanctions that have imposed severe costs on Putin’s regime, and will continue to do so.

Canada and our allies have supplied military aid critical to the defence of Ukraine. This is on top of our efforts to welcome refugees, and provide humanitarian aid.

We are facing a regime that is actively destabilizing global energy markets in an effort to continue its war of aggression against Ukraine and to undermine the energy security of our allies in Europe as a form of blackmail.

That’s why we are engaging extensively with our American and European friends to coordinate our response to Russia’s aggression, while supporting Europe in its goals to move towards secure, reliable and clean energy sources.

Pause

In June, Siemens Canada applied to Global Affairs Canada with an urgent request for a permit to allow for the continuation of regularly scheduled engineering services, technical support and maintenance of six A65 turbine engines at their facilities in Montreal.

As Minister Joly has said, this decision was not taken lightly. I connected multiple times with my counterparts in Ukraine, Germany and the EU to better understand the situation, including the technical aspects of the issue, if any alternatives were possible and the risks around Russian disinformation that had already begun to spread. I and my department also consulted with experts including the Canada Energy Regulator and the International Energy Agency.

We have always recognized that the intention of our sanctions is to punish Putin – not to jeopardize Europe’s fundamental energy security and economic stability.

Some have casted doubt that Gazprom would continue to operate the pipeline - providing vital energy to Europe’s households as they stock up for the winter. Given that

Gazprom is essentially an arm of Putin’s regime, these concerns are well-founded.

Let me be clear, Putin decided to weaponize the Nordstream repairs by publicly stating that unless the turbines were brought back; it would be Canada’s fault that Germany was losing access to Russian gas. This game being played by Russia was designed to divide our alliance.

Canada will never aid Putin in dividing the unity of purpose in our alliance. Instead, our government consulted closely with our allies in order to take this card out of Putin’s hand.

That is why Minister Joly granted Siemens the permit allowing them to complete the scheduled maintenance work and return all six turbines to Germany. As Minister Joly mentioned, this permit is time limited and revocable.

Canada’s decision to remove Putin’s excuse and keep our alliance united has been publicly supported by the US and across Europe. They understand this was the only responsible course of action, while recognizing Ukraine’s concerns around the continued integrity of sanctions against the Russian regime.

Putin’s attempt to shut off the flow of natural gas through the Nord Stream pipeline would threaten the fundamental energy security and economic stability of Europe, if he decides to do this anyway, it will be his decision alone and our united alliance will stand together in enforcing the consequences of those actions upon his regime.

Let me be clear, returning the turbines that deliver natural gas to Europe is essential to ensuring the continued economic stability of Europe – which is vital to the defence of Ukraine as well. Alongside our allies, we have collectively provided billions of dollars to Ukraine in military, financial and humanitarian aid to fight Russian tyranny.

And we will continue to help nations like Germany access energy as they continue to transition away from Russian oil and gas. As we do this, we remain clear-eyed on the short term challenges presented by Putin’s weaponization of energy.

Our allies understand the difficult position they are in. And Germany is taking action in real time to lower energy demand - asking industry to produce half a million new heat pumps each year - to prepare for what is coming.

And Germany is not alone in its concerns, Italy, Austria, Slovakia, Czechia and many other allied countries are also fundamentally threatened by Putin’s actions.

[Pause]

Canada’s action highlights two priorities.

First, we and our allies must do everything in our power to help Europe access secure alternatives to Russian energy as winter approaches.

And second, Canada must continue to support our European allies in decarbonizing their energy system to reduce their overall dependence on Russia while fighting climate change.

On energy security, we have acted swiftly with the infrastructure that exists today.

Canadian producers have stepped up by agreeing to my request that they increase oil and gas production by 300,000 barrel equivalents per day.

I would remind my colleagues that European Commission President stated that “It’s our switch to renewables and hydrogen that will make us truly independent.”

That is why, in the longer term, we are also supporting Europe with our expertise in renewables and nuclear, while encouraging private sector proposals to build export capacity on our Atlantic coast for clean fuels such as Hydrogen, that are consistent with net-zero, and would ensure Europe’s long term energy security.

Colleagues, it’s clear that Europe is moving in the right direction. And we are moving in lockstep.

As the Russians use energy as a tool for blackmail, we will continue to support our European friends in transitioning away from Russian hydrocarbons. This is how we support them in shoring up their energy security while remaining laser-focused on moving towards net zero to combat the threat posed by the climate crisis.

I look forward to your questions.

Thank you.

FAAE Members' Biographies

ALI EHSASSI
(LPC – WILLOWDALE, ON)
CHAIR

ALI EHSASSI

Key Interests

Parliamentary Roles

MP Ehsassi served as Parliamentary Secretary to the Minister of Innovation, Science and Industry (December 2019 – August 2021). He was Vice-Chair for the Canada-China Legislative Association (CACN) (April 2019 – Feb 2020), which he has been a member since December 2015. He has also been a member in both the Canadian NATO (CANA) and Canada-Africa (CAAF) Parliamentary Associations.

Notable Committee Memberships

Background

MP Ehsassi was born in Geneva and raised in New York City and Tehran. He is a graduate of the University of Toronto (B.A.), attended the London School of Economics (M.SC.) and received degrees from Osgoode Hall Law School (LL. B) and Georgetown University in Washington, D.C. (LL.M).

Previously, MP Ehsassi worked as a lawyer in the private sector and as a civil servant at the provincial and federal levels.

Issue Specific Statements

From July 8 to 10, 2022, MP Ehsassi travelled to the Baltics (Latvia, Lithuania and Estonia) concerning the war in Ukraine. On May 6, 2022, MP Ehsassi travelled to Kyiv alongside an EU parliamentarian delegation.

On May 13, 2022, MP Ehsassi made the following statement in the House:

“Mr. Speaker, two months after Putin's full-scale invasion of Ukraine, estimates suggest that over 2,100 Russian missiles have rained down on Ukraine, displacing 12 million, damaging over 200 health care facilities, and destroying 200 heritage sites throughout the country. While visiting Irpin, Bucha and Borodyanka last week, I witnessed first-hand the mass atrocities and unspeakable crimes Russia has visited upon Ukraine.

Despite such unconscionable brutality, every Ukrainian I encountered represented an awe-inspiring profile in courage and fortitude.

That is why the surprise visit by our Prime Minister, Deputy Prime Minister and Minister of Foreign Affairs to Kyiv was crucial, a testament to our country's unwavering commitment to support Ukraine and hold Putin to account. Proud Ukrainians will never relent, and neither should we in our assistance.”

At the April 25, 2022 FAAE meeting on Vaccine Equity and Intellectual Property Rights, MP Ehsassi pushed back on the opposition assertion that the main issue in COVID-19 vaccine procurement is related to supply, and he questioned the effectiveness of a TRIPS waiver at the WTO.

On March 12, 2021, during Question Period, MP Ehsassi rose in the House to deliver the following statement: “It is important for our government that there is a just global recovery from the COVID-19 pandemic. Canada is a strong proponent of a multilateral rules-based system within the WTO context. We are committed to ensuring strong, resilient global medical supply chains and have reached out to the waiver proponents to better understand their concerns.”

He has previously been outspoken about Iran and flight PS752, questioning compensation, requesting an assessment on Iran’s draft report and a transparent investigation, and has asked departmental officials if this matter could/should be addressed at the International Court of Justice.

MARTY MORANTZ
(CPC – CHARLESWOOD – ST. JAMES – ASSINIBOIA - HEADINGLEY, MB)
VICE-CHAIR

MARTY MORANTZ

Key Interests

Parliamentary Roles

Martin Morantz was first elected in October 2019. He served as the National Revenue Critic from March to August 2020.

MP Morantz is a newer MP, but has involved himself in many parliamentary groups, such as the Canada- Europe (CAEU), Canadian NATO (CANA), Canada-US (CEUS), and Canada-UK (RUUK) Parliamentary Associations, as well as the Canadian Delegation to the Organization for Security and Co-operation in Europe Parliamentary Assembly (SECO). He is also the Vice-Chair for the Canada-Israel Inter- Parliamentary Group (CAIL).

Notable Committee Memberships

Background

MP Morantz holds a BA in political studies from the University of Manitoba and a law degree from Osgoode Hall Law School. Prior to his election to Parliament, he served as city councillor on the Winnipeg City Council (2014-2018) where he chaired the Finance and Infrastructure Committee. Prior to his tenure as City Councillor, MP Morantz was a lawyer for 23 years in a Winnipeg law firm. He also presided over Jernat Investment Ltd., a property investment and financial services firm. He also served on the boards of many community groups focusing on autism advocacy and research, assisted living and numerous groups in the Jewish community.

Issue Specific Statements

During the May 12, 2022 FAAE meeting on the war in Ukraine, MP Morantz focused on the relationship between Russia and China, vis-a-vis Ukraine:

“Thank you, Mr. Chair. I want to touch on the meeting between Mr. Putin and Mr. Xi in February before Russia invaded Ukraine. In that meeting they declared a new era in the global order, where they endorsed their respective territorial ambitions. Presumably that means that Russia is endorsing China's claim over Taiwan. The pact challenged the U.S. as a global power and NATO as a cornerstone of international security and liberal democracy.

I guess the question in my mind was.... I can understand why Mr. Putin would love to have this pact before he invaded Ukraine. I'd be interested in your comments on why President Xi would agree to such a thing. I'm wondering if President Xi regrets it, given how badly this Russian incursion has gone for them.”

During the March 21, 2022 FAAE meeting on Vaccine Equity and Intellectual Property Rights, MP Morantz was highly critical of the government for providing $173 million in funding to Medicago for its Covifenz COVID-19 vaccine, despite Phillip-Morris' 20 percent ownership of Medicago, and the WHO’s long standing policy of non-collaboration with tobacco firms.

In December 2021, MP Morantz accused the government of “funding terrorists” following an NGO Monitor report which stated that Canadian tax dollars have been linked to the Union of Agricultural Work Committees (UAWC) (which is connected to the designated terrorist organization: the Popular Front for the Liberation of Palestine). UAWC was declared a terrorist organization by the Israeli government in October 2021.

In March 2021, MP Morantz presented three petitions to the House of Commons regarding: (1) ending the violence in Tigray; (2) allowing humanitarian access to the region; and (3) calling for international investigations into war crimes and human rights violations.

In February 2021, MP Morantz delivered a speech comparing the Uyghur genocide to the Holocaust, demanding that the Prime Minister do more to help liberate them, and that the government “call out the Chinese Communist regime’s heinous acts for what they truly are: a genocide.”

On January 27, 2021, during QP, he declared that Canada’s funding to the United Nations Relief and Works Agency (UNRWA) is being used to fund the indoctrination of children by inciting violence toward Jews. He asked the government to suspend its funding, stating that classroom materials distributed to Palestinian students encourage them to “defend the motherland with blood”, portray child-murdering terrorists as heroes and call Israel the enemy.

On November 4, 2020, MP Morantz rose in the House at QP to ask the Prime Minister whether he approved the export of drones to Turkey.

On October 8, 2020, MP Morantz rose in the House of Commons and presented a petition regarding the persecution of the Uyghurs. He stated: “The petition says in part that it is clear that the UN conventions around the prevention and punishment of the crime of genocide have been breached. Canada cannot remain silent in the face of this ongoing atrocity. The petition formally requests we recognize that Uighurs in China have been, and are being, subject to genocide and to use the Magnitsky Act in this case”.

STÉPHANE BERGERON
(BQ – MONTARVILLE, QC)
VICE-CHAIR AND CRITIC FOR FOREIGN AFFAIRS AND INTERNATIONAL DEVELOPMENT

STÉPHANE BERGERON

Key Interests

Parliamentary Roles

MP Bergeron is currently the Bloc Québécois’ (BQ) Critic for Foreign Affairs, International Development and Canada-China Relations. He has been a member of numerous parliamentary associations and interparliamentary groups, particularly the Canada-China Legislative Association (CACN) and the Canadian NATO Parliamentary Association (CANA). He also served as Vice-Chair for the Subcommittee on International Trade, Trade Disputes and Investment of the Standing Committee from 2002-2004, and the Whip for the BQ from 1997 to 2001.

Notable Committee Memberships

Background

MP Bergeron served as a BQ member of the House of Commons from 1993 to 2005 and a member of Quebec’s National Assembly from 2005 to 2018. In 2019, he returned to the House of Commons as a BQ member. MP Bergeron has a bachelor’s and master’s degree in political science. After first leaving the House of Commons and serving in Quebec’s National Assembly for 13 years, he was registrar of Rimouski’s CEGEP. He was previously a political advisor and a teaching assistant at Université Laval within the political science department. From 1984 to 1993, he served in the Canadian Forces as a naval cadet instructor cadre officer.

Issue Specific Statements

On May 2, 2022, during a meeting of FAAE, MP Bergeron was critical of the government for not providing a timeline for the reopening of the embassy in Kyiv, and the government’s lack of transparency in its security assessments. On March 29th, 2022, MP Bergeron spoke critically of the government’s proposed plan for Ukrainian refugees who seek to come to Canada, and the lack of assurance that health care coverage would be provided.

During an opposition day on December 7, 2021, regarding the creation of a Special Committee on Afghanistan (AFGH), MP Bergeron rose to criticize the government on calling an election as the situation in Kabul was escalating. During this debate, he also linked escalation by Russia at the Ukraine border to Afghanistan as “countries who do not share Canada’s values taking advantage of the coalition’s supposed weakness to impose their views.”

The majority of MP Bergeron’s statements have been related to China, including the eight-month vacancy of Canada’s Ambassadorship and the related impact on the bilateral relationship. He has raised concern regarding the possible invasion of Taiwan by the People’s Republic of China. In Question Period, MP Bergeron has focused on human rights, asking “What will it take for the government to take action and finally get Raif Badawi released?” He followed this question by stating: “it is scandalous that Raif Badawi is languishing in prison after seven years without having committed any crime. If the government can sit down with Saudi Arabia at the G20, if it can sit down with Saudi Arabia to do business and sell the country weapons, then it can certainly sit down with Saudi Arabia to demand the release of Raif Badawi.”

ZIAD ABOULTAIF
(CPC – EDMONTON MANNING, AB)

ZIAD ABOULTAIF

Key Interests

Parliamentary Roles

MP Aboultaif has been a member of numerous parliamentary associations and friendship groups. He has been a recurring member to multiple groups, such as the Canadian NATO Parliamentary Association (CANA), the Canada-Europe Parliamentary Association (CAEU), the Canada-UK Inter-Parliamentary Association (RUUK), and the Canada-US Inter-Parliamentary Association (CEUS). MP Aboultaif was also Conservative Critic for digital government from November 2019 to September 2020 and previously served as the Critic for International Development and the Critic for National Revenue.

Notable Committee Memberships (Ziad Aboultaif)

Background

MP Aboultaif was first elected in 2015 and has been re-elected since. He is a small business owner, working in logistics and distribution. He has stated that he has dealt with the process of international trade, dealing with Kuwait, the United Arab Emirates, and the United States, for his own business commitments. His 2015 campaign pledged to support small businesses and to support pipeline development.

Issue Specific Statements

At the May 5, 2022 session of FAAE on Tibet, MP Aboultaif focused on the deterioration of human rights of the Tibetan people and raised concern that it will only further worsen as China grows in strength.

During the April 4, 2022 FAAE session on Vaccine Equity and Intellectual Property Rights, MP Aboultaif was highly critical of the government for providing $173 million in funding to Medicago for its Covifenz COVID-19 vaccine, despite Phillip-Morris' 20 percent ownership of Medicago, and the WHO’s long standing policy of non-collaboration with tobacco firms.

MP Aboultaif has made multiple pointed statements regarding his support for the oil and gas industry, stating “If Line 5 is shut down, all Canadians from coast to coast to coast will feel the economic downturn”. He has also made statements regarding the importance of diversification in trade and has questioned if Canada has a plan for investing in other markets, should there be need.

RACHEL BENDAYAN
(LPC – OUTREMONT, QC)
PARLIAMENTARY SECRETARY TO THE MINISTER OF TOURISM AND ASSOCIATE MINISTER OF FINANCE

RACHEL BENDAYAN

Key Interests

Parliamentary Roles

MP Bendayan was first elected in a by-election in February 2019. She is currently serving as the Parliamentary Secretary to the Minister of Tourism and Associate Minister of Finance and has previously served as the Parliamentary Secretary to the Minister of Small Business, Export Promotion and International Trade. She has also been a member of the Canada-Europe Parliamentary Association (CAEU), the Canadian Delegation to the Organization for Security and Co-operation in Europe Parliamentary Assembly (SECO) and is a member of the Executive to the Canada-France Inter- Parliamentary Association (CEUS).

Notable Committee Memberships

Background

Before entering politics, MP Bendayan was a lawyer with Norton Rose Canada in Montreal in the fields of litigation and international arbitration, specializing in international trade law. While in private practice, Bendayan also taught at the Université de Montréal’s Faculty of Law. She ran for the Liberal Party in Montréal in 2015, losing to Thomas Mulcair. After the election, she was hired as the chief of staff to the former Minister of Small Business and Tourism, Bardish Chagger.

Issue Specific Statements

On June 9, 2022, MP Bendayan made the following statement in the House regarding the situation in Ukraine:

“Mr. Speaker, the Russian invasion began over 100 days ago. Since then, the people of Ukraine have been experiencing a massacre.

In December, two months before the invasion, I proposed that the Standing Committee on Foreign Affairs and International Development urgently examine the situation in Ukraine. Our work is not done, and I still think it is very important.

Our foreign affairs committee heard from the Ukrainian ambassador about the horrific acts of violence, rape, torture and cold-blooded murder of civilians. The Ukrainian ambassador invited our committee to come to Ukraine to bear witness to this, which I very much hope to do, but the Conservative Party refused. What is more, it has been nearly four weeks that the Conservatives have been filibustering the work of our committee, preventing us from hearing from witnesses and getting on with our work.

Now, just this week, the Conservative Party officially proposed to the House to drop sanctions against Russia on certain agricultural goods. It is shameful.

In times of crisis and in times of war, we must rise. We cannot obfuscate. We cannot back down. We must rise to meet the moment.”

On May 12, 2022, MP Bendayan spoke in the House against the CPC opposition motion for the reestablishment of the Special Committee on Canada-China Relations, which she characterised as “inappropriate”.

During the May 5th, 2022 FAAE session on Tibet, MP Bendayan spoke to China’s “coercive labour” practices against the Tibetan people, and the “colonial boarding schools” meant to deny children access to their culture, language, religion, and families.

In recent committee meetings, MP Bendayan has stressed the importance of protecting Canada’s supply chains in international trade agreements. She also gave a speech on vaccine access where she stated: “The pandemic is not over anywhere until it is over everywhere.” (May 2021).

In the past (October 2020), MP Bendayan has mentioned her concern about the decision of the United States to investigate the export of blueberries and stated her party will advocate for exporters. She has expressed interest in tariffs, exports, and bilateral trade, with the United States.

HON. MICHAEL D. CHONG, P.C.
(CPC—WELLINGTON – HALTON HILLS, ON)
OFFICIAL OPPOSITION CRITIC FOR FOREIGN AFFAIRS

HON. MICHAEL D. CHONG, P.C.

Key Interests

Parliamentary Roles

MP Chong is currently serving as the Official Opposition Critic for Foreign Affairs. MP Chong previously occupied the positions of President of the Queen’s Privy Council for Canada, the Minister of Intergovernmental Affairs and the Minister for Sport from February to November 2006. He has been a member of the Canadian NATO Parliamentary Association (CANA), the Canada-China Legislative Association (CACN), and the Canada-United States Inter-Parliamentary Group (CEUS), among others.

Notable Committee Memberships

Background

MP Chong was first elected to Parliament in 2004 and has been chair of several House of Commons Standing Committees. He is a co-founder and member of the All-Party Climate Caucus since it was formed in 2011. In the 42nd Parliament, MP Chong served as the official opposition’s Shadow Minister for Infrastructure and Shadow Minister for Science. In 2015, Chong’s Reform Act passed in Parliament and became law.

Prior to his election, MP Chong acted as chief information officer for the National Hockey League Players’ Association and as a senior technology consultant to the Greater Toronto Airports Authority for the redevelopment of Pearson International Airport. MP Chong also co-founded the Dominion Institute, now known as Historica Canada, an organization committed to raising Canadians’ awareness of history and civics. He currently sits on its board of governors. MP Chong attended Trinity College in the University of Toronto where he obtained his BA in philosophy.

Issue Specific Statements

On July 10, 2022, MP Chong issued the following statement on behalf of the CPC regarding the Nord Stream 1 gas turbine:

“Yesterday, Canadians learned that the Liberal government will be releasing a Russian owned gas turbine currently located in Canada to Germany, which will effectively allow for the turbine’s return to Gazprom, a Russian-state owned natural gas company. By returning the gas turbine, Canada is circumventing its own sanctions on Russia.

The Liberal government has failed to recognize Canadian energy as vital to both our economy, as well as Canada and Europe’s collective security. Though the fifth largest natural gas producer in the world, Canada has failed to step up in this time of extraordinary crisis. As Putin continues to use Russia’s energy supply as leverage against European democracies, it is clear the Liberal government’s commitment to supply 100,000 barrels per day equivalent of natural gas by year’s end is simply not enough.

Instead of circumventing the global sanctions package meant to punish Putin, the Liberal government should approve new pipelines and liquid natural gas terminals so that Canadian natural gas can displace Russian energy supplies in Europe. Allowing the return of the gas turbine sets a dangerous precedent of folding to Putin’s blackmail of Europe, and will negatively impact Canada’s standing on the world stage.

It is clear Prime Minister Trudeau was more than willing to allow Europe to become dependent on Russian oil and gas, and is now prepared to look the other way while Russia funds its brutal and illegal war in Ukraine with the profits from the energy it sells to Europe.

Conservatives will continue to stand with Ukraine, the people of Ukraine, and the more than one million Canadians with ties to Ukraine. We will also continue to advocate for policies that strengthen our relationship with our allies like Germany, so they are less reliant on Russian natural gas. Conservatives will call on the government to implement strong measures to counter Russia’s aggression and to strengthen the security of Canada and its allies.”

At the May 5, 2022 FAAE session on Tibet, MP Chong pointed to the sanctions imposed on Chinese officials for their human rights abuses/violations against the Uyghur people in Xinjiang, questioned their effectiveness, and whether sanctions should be imposed for similar abuses in Tibet.

On January 8, 2022, MP Chong released a statement accusing the Trudeau government of “failing to take serious action against the Iranian regime for the downing of Flight PS752.”

MP Chong has made several statements on Afghanistan, most recently during the CPC Opposition Day on December 7, 2021. He characterized Canada’s withdrawal as “a betrayal of the legacy of the hundreds of thousands of soldiers of the NATO alliance who fought in the war in Afghanistan for freedom, democracy and the rule of law.”

On April 12, 2021, MP Chong accused the government of threatening to cancel funding for the Halifax Security Forum if it awarded the John McCain Prize to Taiwan’s President and asked whether Canada supports Taiwan’s participation at the WHO’s meeting in May 2021.

MP Chong was sanctioned by the government of the People’s Republic of China (PRC) on May 27, 2021.

On March 26, 2021, during Question Period, he raised the secret trials of Michael Kovrig and Michael Spavor and questioned the government on its participation in the Asian Infrastructure and Investment Bank (AIIB). On March 30, 2021, he expressed concerns on Twitter that the Chinese were limiting access to the WHO investigating team.

MP Chong (and MP Garnett Genuis) have focused significant attention on the human rights situation of the Uyghur population in China. On January 24, 2021, the two MPs issued a Conservative statement calling on the government to recognize the Uyghur genocide, encourage allies to do the same, and update its travel advisories to reflect the potential threats to Canadians when travelling to China. He led the charge on the motion adopted by the House recognizing the genocide of Uyghurs on February 22, 2021. On March 27, MP Chong, along with members of SDIR, was specifically targeted by Chinese sanctions to which he responded that he would wear it as a badge of honour. He is now advocating for Canada to put in place systems to prevent imports of goods issued of forced labour.

MP Chong has been interested and vocal on a variety of issues including China, the mistreatment of Uyghurs, arms export controls, Iran, and Armenia.

HON. HEDY FRY, P.C.
(LPC – VANCOUVER CENTRE, BC)

HON. HEDY FRY, P.C.

Key Interests

Parliamentary Roles

Dr. Fry served as the Parliamentary Secretary to the Minister of Citizenship and Immigration and the Minister of Human Resources and Skill Development (Internationally Trained Workers Initiative) from July 2004 to November 2005. She also served as the Parliamentary Secretary to the Minister of Citizenship and Immigration from December 2003 to June 2004. Dr. Fry has been a member of many parliamentary committees, associations, and interparliamentary groups, since 2002. She currently serves as head of Canada’s delegation to the Organization for Security and Cooperation in Europe’s Parliamentary Assembly (OSCEPA) and is the OSCEPA’s Special Representative for Gender Issues. She also Chairs the Canadian Association of Parliamentarians for Population Development (CAPPD).

Notable Committee Memberships

Background

Dr. Fry is a Trinidadian Canadian politician and physician. She completed her medical training at the Royal College of Surgeons in Ireland. She is currently the longest-serving female Member of Parliament, winning nine consecutive elections in the constituency of Vancouver Centre. Ms. Fry

worked at St. Paul's Hospital in Vancouver for 23 years. She served as president of the British Columbia Federation of Medical Women in 1977. She was president of the Vancouver Medical Association in 1988 to 1989, the BC Medical Association in 1990-1991, and chaired the Canadian Medical Association's Multiculturalism Committee in 1992-1999.

Issue Specific Statements

On May 12, 2022, MP Fry tweeted “China surrounds Taiwan with war ships and war planes - Says its ‘just drills’ where have we heard that before?”, regarding the PLA Air Force violation of Taiwan’s ADIZ.

During the April 25, 2022 FAAE meeting on Vaccine Equity and Intellectual Property Rights, MP Fry focused extensively on the proposed TRIPS waiver at the WTO, COVID-19 vaccine hesitancy, gender equity in vaccine uptake and educating those who are vaccine hesitant.

In a previous FAAE committee meeting (June 1, 2021), MP Fry said: “it would be so very important to have Ukraine as an eastern European democratic country committed to all the international rules and all the tenets of democracy”. She also questioned what officials will be doing to protect women and girls’ sexual and reproductive rights, specifically when they are fleeing their countries (and at high risk of being abused). Her comments regarding Ukraine often focus on the protection of democracy, given her role in the Canadian Delegation to the OSCE Parliamentary Assembly.

Ms. Fry rose in the House in February 2020 to speak on female genital mutilation (FGM), noting, “In 1997 the Liberal government criminalized FGM in Canada. Now we are engaging with other nations, donors, UN organizations and civil society to take action to eliminate FGM globally… More needs to be done. Ending FGM requires governments to act with legislation to protect the human rights of women and girls, with policies that empower them and, most importantly, in this year of Beijing+25, to remember that women's rights are human rights.”

In 2017, Ms. Fry rose in the House to speak on refugee and migrant women and girls worldwide, stating: “Of the 65 million people displaced by conflict, 55% are women and children. Displaced women and girls often experience rape, forced marriages, and sexual slavery… As we laud our own progress, let us remember that women's rights are human rights, and we cannot celebrate fully until all women enjoy those rights.”

GARNETT GENUIS
(CPC – SHERWOOD PARK – FORT SASKATCHEWAN, AB)
OFFICIAL OPPOSITION CRITIC FOR INTERNATIONAL DEVELOPMENT AND HUMAN RIGHTS

GARNETT GENUIS

Key Interests

Parliamentary Roles

MP Genuis is currently the Conservative Critic for International Development and Human Rights. He previously served as the Conservative Critic for Canada-China Relations and Multiculturalism. He was a member of the Canadian NATO Parliamentary Association (CANA) from September 2018 to March 2019 and a member of the Canada-United States Inter-Parliamentary Group (CEUS) from February to March 2017. In September 2017, he triggered an emergency debate in the House of Commons concerning the plight of Rohingya Muslims in Myanmar, and he has presented a private member’s bill and numerous petitions over the past two Parliaments to draw attention to the combat against trafficking in human organs.

Notable Committee Memberships

Background

MP Genuis was elected in 2015, 2019 and again in 2021. He grew up in Strathcona County and got involved in his community through volunteering with various organizations, including a local care centre.

At age 15, he began writing a column for Sherwood Park News for which he continues to be a regular contributor as an MP.

MP Genuis holds a bachelor of public affairs and policy management from Carleton University and master's of science in philosophy and public policy from the London School of Economics. Prior to his election, he worked in the Prime Minister’s Office.

On his website, he cites three of his priorities being: the development of pipelines, advancing human rights, and immigration.

Issue Specific Statements

On June 20, 2022, MP Genuis submitted the following Order Paper Question (OPQ) to Global Affairs Canada concerning Russia Day:

With regard to engagement with the Russia embassy in Ottawa, since February 23, 2022:

  1. How many meetings, phone calls, or email exchanges have occurred between ministers, ministerial staff, parliamentary secretaries, or public servants, and representatives of the Russian embassy?;
  2. what were the (i) dates, (ii) times, (iii) details, (iv) objectives, (v) outcomes, of the meetings or exchanges in (a)?;
  3. How many social events hosted by the government were held where the Russian embassy or an employee of the Russian embassy received an invitation?;
  4. What were the (i) dates, (ii) times, (iii) locations, (iv) details, of the social events in (c)?;
  5. How many social events hosted by the Russian embassy did a Canadian minister, ministerial staffer, parliamentary secretary, or public servant attend; and (f) what were the (i) dates, (ii) times, (iii) locations, (iv) details, of the social events in (e)?

On June 16, 2022, MP Genuis made the following statement in the House during the debate on Global Food Insecurity:

“Madam Chair, we are in the House tonight talking about probably one of the most critical issues that we are going be confronting in this Parliament. We are talking about a global food crisis, and we need to talk about it more. We are talking about a global food crisis in which hundreds of millions of people's lives and well-being are at stake. We know already that 181 million people are expected to be at crisis or worse levels of hunger around the world. This is a massive challenge that we need to talk about more: the global food crisis. We need to be sounding the alarm on this and calling for stronger government action.

How do we address this challenge? I think we need to reflect on the need to focus more on food security and food aid as part of international development. We need to talk about the role the Russian aggression is playing in causing global hunger. We need to talk about how Canadian government policy is hurting the agricultural sector and reducing its ability to respond to this global crisis. All three of these are parts of the response we need to have.”

MP Genuis is sponsoring Senator Ataullahjan’s Bill S-223 (trafficking in human organs) in the House of Commons (currently at second reading as of May 16th, 2022).

On May 12, 2022, he rose in support of MP Chong’s motion to re-establish the Special Committee on Canada-China Relations, in which he said the following: “From its creation, the committee did critical and relevant work. One indication of that is that, while most parliamentary committees barely get mentioned in the press, this special committee broke news stories at virtually every single public hearing”.

At FAAE on March 24, 2022, MP Genuis spoke to Huseyincan Celil’s continued detention in China, and criticized the government for a “lack of engagement in recent years, especially since 2015”. On the subject of Russia, he requested the specific amount of sanctioned assets that have been seized in Canada since the beginning of the war in Ukraine.

On December 21, 2021, MP Genuis recently presented petitions in the House for: 1) increased support of the Haraza community in Afghanistan; and 2) asking Parliament to use Magnitsky sanctions against those responsible for human rights violations in China.

On June 10, 2021, he also spoke on Canada being the only G7 country to have drawn from COVAX supply, characterizing it as a “real failure”.

On November 26, 2020, he introduced a motion (M-55) to combat foreign state interference in Canada.

During a meeting at CACN on May 25, 2020, MP Genuis delivered the following statement, comparing the situation in Hong Kong to Russia’s previous invasion of Ukraine: “There is no honour in trying to play the disinterested and neutral broker between the oppressor and the oppressed. There is only honour in championing the cause of the oppressed and working to advance the cause of justice. That is what Canada did after Putin's invasion of Ukraine. We drove an international consensus which isolated the Kremlin, punished it for its actions and supported the Ukrainian people. We used a combination of economic and political measures to support victims of violence and to deter future aggression. A government with a principled foreign policy would be doing the same today.”

On January 24, 2020, together with Foreign Affairs Critic Chong, MP Genuis issued a Conservative statement calling on the government to recognize the Uyghur genocide, encourage allies to do the same, and update its travel advisories to reflect the potential threats to Canadians when travelling to China. Although MP Chong presented the motion for the House to recognize the Uyghur genocide, MP Genuis has been a strong advocate on this topic and spoke quite often on the issue in the House.

HEATHER MCPHERSON
(NDP – EDMONTON STRATHCONA, AB)
CRITIC FOR FOREIGN AFFAIRS AND INTERNATIONAL DEVELOPMENT

HEATHER MCPHERSON

Key Interests

Parliamentary Roles

In the 44th Parliament, MP McPherson was appointed as the NDP Deputy Whip, Critic for Foreign Affairs, International Development, and Deputy Critic for Canadian Heritage. She was previously the Deputy House Leader for the NDP. McPherson is also a member of numerous parliamentary associations and interparliamentary groups, such as the Canadian Branch of the Commonwealth Parliamentary Association (CCOM), the Canadian NATO Parliamentary Association (CANA), the Canada-Europe Parliamentary Association (CAEU), and the Canada-Israel Interparliamentary Group (CAIL). She is Vice- Chair of the Canada-Africa Parliamentary Association (CAAF), which she has been a member of since 2019.

Notable Committee Memberships

Background

Heather McPherson is the Member of Parliament for Edmonton, Strathcona. She was elected in 2019 and 2021. McPherson was a member of the Canadian delegation to the United Nations and the former executive director of the Alberta Council on Global Co-operation. MP McPherson’s website states that she has an interest in poverty reduction, human rights, environmental protection, and gender equality.

Issues specific statements

On July 11, 2022, MP McPherson made the following statement on behalf of the NDP regarding the Nord Stream 1 gas turbine:

"It is shocking and disappointing that the Liberal government has decided to allow the Nord Stream 1 turbines to be sent to Germany and returned to Russia. This decision goes against the sanctions Canada imposed on Russia in response to the illegal invasion and genocide in Ukraine.

Canadians expect their government to show real solidarity with Ukraine but the Liberal government’s decision is an affront to Ukrainians.

How will Canada have any legitimacy in asking other countries to hold Russia accountable for its crimes when we do not adhere to our own sanctions?

Putin claims Russia will provide gas to Germany with the return of the turbines – but we cannot believe anything Putin says. He has lied time and time again. Why would this time be any different? It is important to note that Russia does not need this turbine to supply gas to Germany.

New Democrats support the request from the Ukrainian Canadian Congress to immediately reconvene the House of Commons Foreign Affairs Committee to discuss the federal government's decision. I have also proposed that the Committee study Canada’s failing sanctions regime. It is clear that the Liberal government’s approach to sanctions is both inconsistent and incoherent, and Canadians deserve to know why.

This decision sets a dangerous precedent. Russia will use these pressure tactics again and again – and the Liberal government must not capitulate. New Democrats urge the Liberal government to reverse this decision.”

At the May 3, 2022 SDIR session on the current situation of human rights in Ukraine and Russia, MP McPherson spoke to “the ways that Russia has gone into Ukraine, despite lying over and over again, has fired on citizens and has, very clearly, done unspeakable, horrific things”. She has been very critical of the Russian government and their alleged war crimes and crimes against humanity in Ukraine, which she has characterized as such.

During the April 25, 2022 FAAE meeting on Vaccine Equity and Intellectual Property Rights, MP McPherson was very critical of AstraZeneca and Pfizer for their COVID-19 vaccine procurement practices and asked “when will it be enough money for you” that vaccines could be provided without cost and pointed to Pfizer’s $37 billion profit for their COVID-19 vaccine.

MP McPherson has been a strong voice on Afghanistan, especially on women and girls in the region. She tweeted on December 16, 2021: “I am completely devastated by this news. A 10-year-old girl, a child, died because her family supported the Canadian military and Canada did not protect them. The Liberals have failed this girl, this family, and all the Afghans who have been abandoned.”

MP McPherson put forward two motions at FAAE’s December 13, 2021 meeting: 1) that the committee undertake a study on global vaccine access at the earliest possible opportunity and that the study focus on Canada's contribution to COVAX, as well as the impacts of intellectual property rights on global access to COVID-19 vaccines; and 2) that the committee hold at least two meetings on the situation unfolding in Ukraine and that witnesses include officials from Global Affairs Canada and the Ukrainian Canadian Congress.

MP McPherson was sanctioned by the government of the People’s Republic of China (PRC) on May 27, 2021.

MP McPherson has also repeatedly raised Canada’s official development assistance at both FAAE and SDIR. For example, at the November 26, 2020 SDIR meeting, she stated that “Canada has not played a strong enough role in development” and asked witnesses to speak to the importance of humanitarian aid.

HON. ROBERT OLIPHANT P.C.
(LPC – DON VALLEY WEST, ON)
PARLIAMENTARY SECRETARY TO THE MINISTER OF FOREIGN AFFAIRS

HON. ROBERT OLIPHANT P.C.

Key Interests

Parliamentary Roles

Rob Oliphant was made the Parliamentary Secretary to the Minister of Foreign Affairs in May 2019 and retained this role in the 43rd and 44th Parliaments. He is actively involved in parliamentary associations. He is currently Vice-Chair of the Canada-Africa Parliamentary Association (CAAF) and is a member of the Canada-Europe Parliamentary Association (CAEU), the Canadian NATO Parliamentary Association (CANA), and the Canada-China Legislative Association (CACN), among many others.

Notable Committee Memberships

Background

PS Oliphant was first elected to the House of Commons in October 2008. He was defeated in the 2011 federal election but was re-elected in 2015, 2019 and 2021. He graduated with a bachelor of commerce from the University of Toronto in 1978. During his time at University of Toronto, he was active in the University of Toronto Liberal Club, as well as the Ontario (New) Young Liberals. After obtaining a master’s of divinity from the Vancouver School of Theology, he was ordained as a United Church Minister in 1984. His official title is The Reverend Doctor Robert Oliphant, MP.

PS Oliphant worked in Premier David Peterson’s office in 1989. He later worked for two provincial Ministers, Christine Hart, Minister of Culture and Communications, and Mavis Wilson, Minister Responsible for Women’s issues.

He has been vocal on issues of support for people living with disabilities, the LGBTQ+ community, and encouraging multiculturalism. From 2008-2011, he served as the Official Opposition Critic for Veteran’s Affairs and for Multiculturalism.

Issue Specific Statements

At FAAE on May 5, 2022, PS Oliphant voted in favour of MP Chong’s motion regarding the Sino-Tibetan dialogue, that Canada should support the facilitation of negotiations between the People’s Republic of China and the Central Tibetan Administration, while adding an amendment to “[enable] Tibet to exercise genuine autonomy within the framework of the Chinese.”

During the May 2nd, 2022 FAAE meeting on the war in Ukraine, PS Oliphant said the following: “You used the word “barbaric” earlier. I would say that Canadians have been shocked. This is the 21st century, yet the war being waged by Russia against Ukraine is nothing like it should be in the 21st century. It shouldn't be happening, of course, but it feels like an ancient war, where civilians and infrastructure are targeted, and there is an aggression that we have not seen—that I have not seen in my lifetime. Canada will continue to stand in solidarity.”

In a Global Affairs Canada news release from January 6, 2021, Parliamentary Secretary Oliphant reaffirmed support for advancing non-proliferation and disarmament during the third meeting of foreign ministers of the Stockholm Initiative for Nuclear Disarmament.

On January 1, 2021, PS Oliphant tweeted: “Canada and Canadians cannot and will not abandon the Afghan people. Despite the tremendous challenges on the ground, we continue to get humanitarian assistance through using trusted multilateral partners.”

PS Oliphant frequently defends Canada’s foreign policy model, stating it “is based on renewing a rules- based international order that Canadians have built together, protecting universal human rights, supporting democracies,” and noting “We are a leader in the world on critical issues, whether it is in Venezuela, or in the Middle East or in China, all around the world. We will continue to stand with our allies, with NATO partners, as we continue to ensure Canada's leadership is strong and heard in our world with allies and like-minded who work with us.”

RANDEEP SARAI
(LPC – SURREY CENTRE, BC)

RANDEEP SARAI

Key Interests

Parliamentary Roles

MP Sarai was first elected in 2015. Previously, he has been involved in many parliamentary groups, such as the Canada-China Legislative Association (CACN) from 2015-2020, the Canadian NATO Parliamentary Association (CANA) from 2016-2019, and the Canada-Israel Interparliamentary group (CAIL) in 2016.

Notable Committee Memberships

Background

MP Sarai is a lawyer by training, with experience in real estate development and urban planning. He has a BA from the University of British Columbia, majoring in political science, and a bachelor of laws degree from Queen’s University. He has served on the boards of a number of community organizations dedicated to combatting youth violence in Surrey.

Issues specific statements

At SDIR on May 3, 2022, MP Sarai underlined the “egregious” and “appalling” human rights violations in Ukraine, including “war crimes and crimes against humanity that were being committed by Russian forces against civilians”.

During the April 25, 2022 FAAE meeting on Vaccine Equity and Intellectual Property Rights, MP Sarai questioned the effectiveness of a TRIPS waiver at the WTO, given there is insufficient manufacturing capacity for a waiver to be practical, stating: “I would like to find out if any of the witnesses can elaborate on how practical a TRIPS waiver would be, taking in the time...how long it would take to build a facility specifically for the mRNA type of vaccines, which would procure the ingredients and manufacture and deliver vaccines?”

At FAAE on March 28, 2022, MP Sarai questioned departmental officials on the upcoming trip by the UN High Commissioner for Human Rights, Michelle Bachelet, to China and her expected report on the current human rights situation in Xinjiang.

MP Sarai has raised issues regarding the inequities of vaccination and the socioeconomic impact that vaccine inequality presents worldwide. Additionally, he raised concerns about climate change, and the need for more sustainable and green processes. He has also made statements regarding international organ trafficking, voicing his support for Bill S-223, An Act to Amend the Criminal Code and the Immigration and Refugee Protection Act (trafficking in human organs) during its second reading.

SAMEER ZUBERI
(LPC – PIERREFONDS – DOLLARD, QC)

SAMEER ZUBERI

Key Interests

Parliamentary Roles

MP Zuberi was a member of the Canadian NATO Parliamentary Association (CANA), the Canadian Branch of the Commonwealth Parliamentary Association (CCOM), and of the Canadian Group of the Inter- Parliamentary Union (UIPU).

Notable Committee Memberships

Background

MP Sameer Zuberi was first elected as the Member of Parliament for Pierrefonds-Dollard in 2019. MP Zuberi previously worked at McGill University’s Faculty of Medicine and has also worked professionally as a legal researcher, an educator, in media relations and in human rights. His work includes serving on McGill University’s Senate, the boards of a West Island poverty relief organization – a legal association, and the Conseil intercultural de Montréal which is an advisory body to the City of Montreal. MP Zuberi holds degrees in law from the Université du Québec à Montréal (UQAM) and in mathematics from Concordia University.

Issue Specific Background

On March 24, 2022, at a FAAE meeting, MP Zuberi asked whether Canada is working with our allies to create an off-ramp for Vladimir Putin that allows him to save face to end the conflict. On May 6, 2022, MP Zuberi met with Canada’s Ambassador to the UN to discuss the human rights situation in Ukraine.

On Twitter, MP Zuberi has condemned Russian action to silence independent journalism within the country. At SDIR’s last meeting, MP Zuberi asked witnesses to provide examples of Russia’s violations of international obligations and human rights abuses.

Sanctions in response to the Russian invasion of Ukraine

Supplementary messages

Update

On July 29, 2022, Canada sanctioned an additional 43 individuals and 17 entities. These persons include military officials involved in the Bucha massacre and entities in the defence sector directly or indirectly supporting the Russian military.

Background

Since the start of the February invasion, under the Special Economic Measures Act (SEMA), Canada has sanctioned over 1200 individuals (1057) and entities (202) in Russia, Belarus and Ukraine. This includes senior officials, close associates of the Putin regime financial elites, oligarchs and their family members and agents of disinformation for their involvement in the Russian invasion of Ukraine, as well as those supporting the regime’s ongoing aggressive actions in Ukraine and Belarus. In addition, Canada implemented targeted and hard-hitting restrictions in financial, trade (goods and services), energy, transport and defense sectors. Most recently, Canada prohibited the provision of 30 services in 15 targeted industry categories in the oil, gas, chemical and manufacturing sectors. In coordination with allies and as part of our G7 commitment, Canada also prohibited the import of certain gold products from Russia on July 7, 2022. Canada introduced restrictions on trade to and from the so-called LNR and DNR regions; revoked Russia’s and Belarus’s Most Favoured Nation status; banned export and import of targeted luxury goods to/from Russian and Belarus; targeted Russia’s ability to access to the global financial system; supported advocacy efforts to have major Russian banks removed from SWIFT; stopped the issuance of new permit applications and cancelled valid permits to export controlled military, strategic, and dual-use items to Russia. Canada also prohibited the export to Russia and Belarus of a list of goods and technologies, including several used or that could be used in the manufacturing of weapons. Canada closed airspace to all Russian and Belarusian aircraft and prohibited all Russian vessels from entering internal waters and docking at domestic ports. Canada along with the US, UK, Australia and New Zealand restricted Russian oil and gas imports.

Impact: Canada’s sanctions measures, in coordination with our like-minded partners, have had a serious impact on Russia. On June 27, 2022, Russia defaulted on paying its foreign debt for the first time since 1918; and the World Bank’s “Global Economic Prospects” (June 2022) says Russian GDP will decline by 6% in 2022 and 3.5% in 2023. Russia is facing unprecedented global isolation, those closely associated with

the Putin regime are prevented from accessing our financial system. Russia’s capacity to wage war is impaired, and negative economic impacts will help to dissuade future aggression. Canada is aware that it faces some collateral economic damage for taking

economic measures against Russian oligarchs and businesses, but inaction would have had a greater negative impact on Canada in the long term. Canada’s measures against Russia do not and will not target essential exports of food and agricultural inputs to third countries, or other humanitarian necessities such as medicine and medical devices. This is in line with our partners – the United States, the United Kingdom, the European Union and many more.

Support to Ukraine

Supplementary messages

Supporting facts and figures

Reinforcing eastern flank allies

Supplementary messages

Supporting facts and figures

Background

Operation REASSURANCE is Canada’s military contribution to NATO’s efforts in Central and Eastern Europe. Since 2017, Canada has led the NATO eFP battlegroup in Latvia as Framework Nation, one of eight such battle groups (with others located in Bulgaria, Estonia, Hungary, Lithuania, Poland, Romania and Slovakia). Nine Allies currently contribute troops to eFP Latvia. On March 8, Canada announced it will renew its commitment to Operation REASSURANCE beyond 2023.

On June 29, Canada and Latvia signed a Joint Declaration outlining our joint commitment to augment the Canada-led eFP Latvia battlegroup. This includes commitments by Canada, in consultation with Latvia and Allies, to scale up the current battlegroup by enabling a rapid and effective reinforcement in Latvia with a multinational brigade’s worth of forces. This includes commitments to: develop command and control elements in Latvia, forward-deploy or preposition personnel and equipment, acquire and deploy capabilities, such as anti-tank and air defence systems, and lead a planning process with Allies to identify troops to ensure the ability to surge a brigade into Latvia, as required by SACEUR.

ATIP protected background

Canada is undertaking three additional actions to bolster the CAF’s presence on NATO’s eastern flank. [REDACTED] Romania to bolster the deployment of the six CF-18s as part of the air policing mission. [REDACTED] Latvia to bolster the eFP.

[REDACTED].

Export controls - general

Supplementary messages

Update

In February 2022, export controls restrictions toward Russia were amongst the measures announced by the Prime Minister following the invasion of Ukraine. Since 2019, the issue of export controls has received sustained public, media and parliamentary attention, including through the 2021 study and report on arms exports permits of the Standing Committee on Foreign Affairs and International Development.

Supporting facts and figures

Background

Export controls are meant to ensure that controlled items are exported in a manner that is consistent with Canada’s foreign and defence policies and national security. Controls are not meant to unnecessarily hinder international trade, but to regulate and impose certain restrictions on exports in response to clear policy objectives. Most strategic items are controlled for export further to Canada’s commitments in the four main multilateral export control regimes.

Canada's sanctions regime

Supplementary messages

Update

Recent listings under Canada’s Special Economic Measures Act (SEMA) include:

Supporting facts and figures

Background

SEMA allows Canada to impose sanctions on a foreign state, its individuals and entities, either due to a grave breach of international peace and security resulting in an international crisis; a call from an international organization on its members to impose sanctions; gross systematic violations of human rights; or cases of significant corruption. SEMA sanctions can include a dealings ban on targeted individuals and entities, and restrictions on trade or financial transactions. To maximize effectiveness, Canada coordinates with other countries. There are SEMA sanctions on 13 countries (see annex).

The Justice for Victims of Corrupt Foreign Officials Act (JVCFOA) allows Canada to target foreign nationals responsible for or complicit in gross violations of internationally-recognized human rights and acts of significant corruption. There are 70 individuals listed under the JVCFOA (see annex). Canadians are prohibited from dealing with these individuals, effectively freezing their Canadian assets. They are also inadmissible to Canada under the Immigration and Refugee Protection Act.

Further to announcements made in Budget 2022, amendments to the SEMA and JVCFOA now allow for the seizure, forfeiture, disposal and redistribution of sanctioned assets. Proceeds generated from the sale of assets may be used for reconstruction of affected states, restoration of international peace and security, and compensation to victims.

In consultation with other government departments, GAC officials are currently finalizing the Terms of Reference of the Governance Committee that is being set up to make recommendations to the Minister of Foreign Affairs on potential assets to pursue under this new asset seizure and forfeiture regime, including in relation to the current conflict in Ukraine. Work in relation to further potential SEMA and JVCFOA amendments is also on-going.

Canada is legally required to implement sanctions imposed by the UNSC. These sanctions are implemented in Canada through regulations under the United Nations Act. There are 12 countries subject to UN sanctions: Central African Republic, Mali, DRC, Iran, Iraq, Lebanon, Libya, DPRK, Somalia, South Sudan, Sudan, and Yemen.

Through targeted sanctions measures, the Government of Canada strives to minimize adverse consequences for civilians and for legitimate humanitarian businesses and activities. It mitigates unintended humanitarian consequences of sanctions through legislated exceptions for certain activities and the permit and certificate processes.

A review of the JVCFOA & SEMA is legislated to be undertaken by committees of the House and the Senate within five years after the coming into force of the JVCFOA (i.e. before Oct 18, 2022). To this end, the Department is preparing a memorandum for your information that provides further details on this review and explains the important opportunity it provides to reflect on lessons learned about these tools over the last five years. It is also a key opportunity to address identified gaps in the legislation and to build on best practices for the use of these tools moving forward.

Annex: Canadian autonomous sanctions listings

Special Economics Measures Act (SEMA)

Justice for Victims of Corrupt Foreign Officials Act (JVCFOA)

NATO

Supplementary messages

Supporting facts and figures

Background

NATO: The Alliance has been a cornerstone of Canada’s defence and security since 1949, and remains central to Euro-Atlantic security and the rules-based international order. NATO has three core tasks: (1) collective defence, (2) crisis management, and (3) cooperative security.

Russia/Ukraine: Allies have bolstered their contributions to NATO’s enhanced Forward Presence (eFP) battlegroups in the Baltic States and Poland, and established additional battlegroups in Bulgaria, Hungary, Romania and Slovakia. Allies are responding to Russia’s invasion of Ukraine with sanctions and other measures, and contributing military aid on an individual basis. NATO is not a party to the conflict.

Membership: NATO’s door is open to new European members. Allies have invited Finland and Sweden to join the Alliance, and the ratification process is underway. Allies have reaffirmed they stand by the decision made at the 2008 NATO Bucharest Summit that Ukraine “will” (eventually) become a member of the Alliance. Canada supports NATO’s Open Door Policy, and has invested significantly in bilateral and defence relations with Ukraine in support of its Euro-Atlantic aspirations.

NATO Summit: From June 28-30, NATO Leaders held a transformative and historic Summit in Madrid. This included four main deliverables: (1) an updated Strategic Concept, (2) an invitation to Finland and Sweden to join the Alliance, (3) strengthened force posture on NATO’s eastern flank, and (4) increased common funding. NATO also launched a €1 billion Innovation Fund over the next 15 years to develop dual-use emerging technologies. The Summit featured NATO Partners, including a virtual address by Ukrainian President Zelenskyy, other European Partners, and a first-ever Summit meeting with NATO’s Asia Pacific Partners (Australia, Japan, New Zealand, South Korea). Prime Minister Trudeau announced Canada would host NATO’s Climate Change and Security Centre of Excellence (CCASCOE) in Montréal, and in time, the North American Regional Office of the Defence Innovation Accelerator for the North Atlantic (DIANA). Minister Joly announced Canada is expanding its diplomatic presence in Central and Eastern Europe and the Caucasus, including a new embassy in Armenia, converting current offices in Estonia, Lithuania, and Slovakia to full embassies with resident ambassadors, and strengthening our presence at our embassy in Latvia. Minister Anand and her Latvian counterpart signed a Joint Declaration to reaffirm each other’s commitments to NATO and security along the eastern flank.

Russia: president Putin's war against Ukraine

Supplementary messages

Update

Russian Foreign Minister Sergei Lavrov recently visited Egypt, Uganda, Ethiopia and the Republic of Congo (July 24 – July 27) in an attempt to shore up support on the African continent for Russia’s invasion of Ukraine. In a July 24th address to the Arab League in Cairo, Lavrov made a strident re-affirmation of the maximalist aims of Russia’s war in Ukraine. This comes after Putin’s recent July 19th visit to Iran, where he met with Iranian President Ebrahim Raisi and Turkish President Erdogan.

Russia continues to sell numerous false narratives on the invasion, as well as the global food and energy crisis. Russia is attempting to exploit and exacerbate tensions and potential grievances in Africa and Middle East with the West, by suggesting that Western sanctions are the cause of the global food crisis. Russia is also attempting to drive a wedge in transatlantic relations. Russian authorities continue to implicate Canada in a disinformation campaign to justify reductions of much-needed natural gas deliveries to Europe, claiming a delay in delivery, the faultiness of other current turbines, and lack of transparency in the process regarding the status of delivery.

During his visit to Uganda, Lavrov stated that Russia is prepared to return to the negotiating table with Ukraine at any time; Putin and Turkish President Erdogan are to meet in Sochi on August 5th. At the same time, Russia is preparing to hold "referendums" in the occupied regions of Kherson and Zaporizhzhia – both occupying authorities announced the creation of election commissions – which will only complicate negotiations.

On July 22, Türkiye, UN, Ukraine and Russia signed agreements for a UN-led Black Sea initiative. The two separate agreements include: safe grains passage from Ukraine and UN facilitation for Russian food and fertilizer exports. Russia attacked the port of Odesa one day after signing the agreement. UN Secretary General condemned the attack. Canada, US, Japan and the EU issued similar statements. The UN is evaluating the impact on the Black Sea initiative’s implementation, but indications are that the agreement is moving ahead. Canada and G7 counterparts are focusing efforts on supporting implementation of the agreements, and encouraging both sides to implement. The UN anticipates that the first ships could leave the ports in the near future, which will be an important first step.

Background

Since President Putin’s attempted annexation and illegal occupation of Crimea as well as the occupation of parts of the Donbas with proxy forces and mercenaries, dating back to 2014, he has continued to consolidate his control over Ukraine’s territory and advance efforts at further destabilization. Beginning in November 2021, Putin started amassing a large number of troops and military equipment in illegally occupied Crimea and along Ukraine’s border in Russia, occupied Donbas and in Belarus, effectively encircling the country from three sides. As a pretense to the invasion, Russian leadership had made numerous demands from NATO, including limits on further NATO expansion into Eastern Europe and the removal of troops and weapons from countries that joined the Alliance after 1997.

Despite intense western diplomacy, on February 24, President Putin ordered an invasion of Ukraine. Prior to the invasion, on February 21, President Putin signed decrees recognizing the independence of the so-called Luhansk and Donetsk People’s Republics (LNR and DNR) in eastern Ukraine. Russia immediately started deploying more troops into the LNR and DNR under the guise of “peacekeepers”. The UN Secretary General described it as a “death blow to the Minsk Agreements”. On March 2, the UN General Assembly (UNGA) adopted a resolution on “Aggression in Ukraine”, with overwhelming support and 96 co-sponsors from all regions. On March 1, Canada referred the situation in Ukraine to the International Criminal Court (ICC) with 38 other ICC member states as a result of numerous allegations by the commission of serious international crimes in Ukraine by Russian forces, including war crimes and crimes against humanity.

President Putin’s war of choice against Ukraine continues with rocket attacks on civilian targets across the country but has increasingly focused its ground offensive in the east, including the targeting of civilians, civilian infrastructure, and nuclear facilities. President Putin’s military invasion has been paired with significant malicious cyber operations as well as propaganda and disinformation campaigns, falsely claiming that Ukraine and the West are the aggressors and supporting a “biological war against Russia”, and that Ukraine is developing nuclear weapons and persecuting Russian speakers. As Putin escalates his invasion, he seeks to dominate the information environment and manipulate facts and information surrounding events on the ground.

It is challenging to determine the number of Russian casualties given chaotic battlefield conditions and Russian secrecy surrounding military deaths. Reliable sources estimate that as of July, more than 20,000 Russian troops have been killed in the war so far, and several tens of thousands wounded.

Operation REASSURANCE

If pressed on additional NATO support:

Key facts

Support for Ukraine (Operation UNIFIER)

If pressed on the provision of further military aid to Ukraine:

Key facts

War crimes committed by Russian forces

Supplementary messages

Supporting facts and figures

Background

Russia continues its campaign of aggression against Ukraine, with allegations being made that it continues to commit war crimes and crimes against humanity. In this regard, the report of the OSCE fact finding mission, that was released on April 13, found clear patterns of violations of humanitarian law by Russian forces, and the commission of war crimes. Particularly alarming has been credible reports that Russian forces have committed widespread conflict-related sexual violence.

Canada-Germany bilateral and commercial relations

Supporting facts and figures

Background

Carbon pricing and the “Climate Club”: The “Climate Club” is a G7 initiative developed by Chancellor Scholz in August 2021 (during Germany’s federal election campaign) and elevated in December to a G7 priority. The “club” would create a coalition of countries committed to comparable standards to protect member-states industries from competitors with less stringent climate policies. Members would coordinate how they measure carbon; would cooperate on decarbonizing their industrial sectors; and could implement tariffs on high-carbon imports to create a level playing field to prevent industries from moving to countries with lower climate ambition. On June 28, all G7 countries issued a joint statement supporting the Climate Club at the conclusion of the Elmau Summit.

As part of the Global Carbon Pricing Challenge (GCPC), PM Trudeau has consistently called on countries to implement pollution pricing measures, which have been effective in reducing emissions in Canada. The GCPC includes a goal of covering 60% of global emissions by a price on carbon by 2030.

Coordination on Ukraine War: As NATO and G7 members, Canada and Germany have been coordinating closely on the Russia-Ukraine issue since November 2021, when Russia began its large-scale build-up of troops on the border with Ukraine. Since Russia’s invasion, coordination has continued particularly with respect to sanctions, provision of weapons, diplomatic and consular issues (e.g. embassy closures and re- opening), humanitarian assistance, refugees and plans for reconstruction in Ukraine.

On 26 February, Chancellor Scholz delivered his historic Zeitenwende (“Turning Point”) speech to the Bundestag, during which he announced key changes to Germany’s defence policy, including allowing export of offensive and heavy weapons to Ukraine, as well as a strong transition away from Russian energy imports, which has proven painful for Germany given its reliance on Russian oil and gas.

Assistance to Ukraine

According to information on the German Foreign Federal Office’s website, since 2014, Germany has been one of the world’s largest providers of bilateral assistance to Ukraine. Before February 2014, this consisted almost entirely of financial, development (including peace and stabilization) and financial assistance. Since Russia’s invasion, German military assistance has expanded rapidly to include training on and provision of heavy weapons.

From 2014 to February 2022, German assistance totalled approximately EUR 2 billion, including:

Since February 2022, Germany has committed in additional EUR 4 billion military, humanitarian and financial assistance to Ukraine. Specific weapons (including training) and equipment provided has included:

CETA: CETA has been in force provisionally since September 2017. This includes tariff elimination and commitments in services trade, government procurement and temporary entry of business persons, as well as chapters on labour, the environment, and trade and sustainable development, among others. On July 7, Germany’s governing Ampel Coalition tabled a draft CETA ratification bill at the Bundestag (Germany’s lower chamber) for a first reading. A fully ratified CETA would provide certainty for the future of the agreement and the trading relationship, and would see additional elements of the agreement, such as the provisions on investment protection, enter into force. To date, 16 of 27 EU member states have ratified the agreement, including most recently, the Netherlands.

Chancellor Scholz Visit: The visit was officially announced at the G7 Elmau Summit and will take place August 21-23. The visit will highlight the strong, strategic and friendly bilateral relationship.

Energy Security

Supplementary messages

Supporting facts and figures

Background

Russia’s invasion of Ukraine and subsequent sanctioning of Moscow by Western governments has significantly increased global energy market volatility at a time when markets were already facing uncertainty and growing structural deficit from underinvestment in both conventional and clean energy.

Even before Russia’s invasion of Ukraine, there was an undersupply of oil due to several years of underinvestment in upstream production and export infrastructure, the impact of COVID-19, and production restraint by OPEC+ countries. The combination of an undersupplied market and strong demand recovery was already driving energy cost increases prior to the Russian invasion, especially in Europe.

Efforts to displace Russian crude are prompting a realignment of global energy markets. Although data suggests that trade flows of Russian oil are being redirected towards Asia, it remains unclear whether Asian buyers can make up for the volumes that would compensate for declining European purchases.

A combination of sanctions against Moscow and pre-existing undersupply issues is having a significant impact on the global economy. Oil prices spiked in mid-March, but have since dropped, though benchmark prices remain above $100 per barrel.

Increased energy costs are also contributing to record inflation. In March 2022, year over year inflation rates were 6.7% in Canada, 8.5% in the US, and 7.5% in the Euro area.

To address concern over global supply issues and calm volatile global oil markets, the IEA took two separate collective actions for a total emergency stock release of about 1 mb/d over the April to September period, or total commitments of 182.7 million barrels (mb).

As a net oil exporting country, Canada is not obligated to hold emergency stocks and thus did not participate in either stock release noted above. However, Canada is fully supportive of the collective action taken by IEA members.

Value of Russian assets seized in Canada

Supplementary messages

Background

As part of specific efforts to assist the Ukranian government and people in their fight against the current Russian invasion, Canada joined with the European Commission, France, Germany, Italy, the United Kingdom, and the United States in a cooperative effort to target Russian assets. This effort, known as the Russian Elites, Proxies and Oligarchs (REPO) multilateral task force, was announced formally on March 16, 2022. The Government of Canada’s overall objective as part of the REPO taskforce is to counter Russia’s illegal invasion of Ukraine and hold those responsible for that invasion to account.

An important part of these efforts is the implementation and updating of sanctions that were enacted pursuant to subsection 4(1) to (3) of the Special Economic Measures Act (SEMA). The Government of Canada has imposed sanctions on a number of individuals and entities as listed under the Special Economic Measures (Russia) Regulations (the Regulations). The individuals and entities listed in the Regulations have been included for their complicity in, facilitating, enabling or otherwise supporting Russia’s illegal invasion. The Regulations first came into force on March 17, 2014, and were last amended on April 8, 2022. A similar piece of legislation, the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) (JVCFOA) received royal assent on October 18, 2017.

SEMA and its Regulations and the JVCFOA allows the Governor in Council (GIC) to make orders and regulations to restrict dealings in property and freeze the assets of foreign nationals, if the GIC is of the opinion that certain circumstances have occurred.Footnote 1 These are key tools to help the Government achieve its overall objectives. On June 23rd, 2022, amendments to SEMA and JVCFOA to allow for seizure and forfeiture of assets came into force.

Nord Stream 1 Turbine Chronology – Summary of Media Reports

August 2: The G7 foreign ministers release a statement on energy security that condemns Russian attempts to weaponize its energy exports and pledges to work together to mitigate the impact of energy supply disruptions.

August 1: As Germany prepares for winter, some are voicing concern about potential social unrest, rationing and recession. If energy conservation methods fail, the German government may take control of gas distribution; German Chancellor Olaf Scholz says Trudeau called Russia's bluff by allowing the turbines to be returned; Debate in Germany is rising over whether the country should switch off its last three nuclear power plants.

July 31: President of the Business Council of Canada writes that Canada must “do more to export critical resources to countries we count as allies.” including increasing the infrastructure needed to access global markets. He says Canada’s critical energy infrastructure would strengthen energy security for Canada and its allies, as well as improve global environmental security.

July 29: Gazprom's senior manager says the delivery of a Nord Stream 1 gas turbine to Germany after maintenance was not in line with the contract, stepping up Gazprom’s criticism of Siemens Energy; A fellow at the Foreign Policy Research Institute writes that to survive this energy crisis, Europe needs to: increase natural gas production in the Groningen gas field in the Netherlands, extend Germany’s nuclear power plants’ lifespan, and form new partnerships with global energy suppliers; The latest drop in the Russian gas supply (to 20%) may disrupt Asia’s energy security and could trigger Asia to back away from LNG.

July 28: Autocratic leaders around the world are being approached by EU countries as potential sources of energy; Ukraine's ambassador to Canada says gas supply cuts to Europe prove that the sanctions waiver should not have been granted; CBC notes that neither Natural Resources Canada nor Global Affairs Canada responded directly when asked whether the Trudeau government was considering revoking the waiver; CPC MP Greg McLean writes that while Germany finds itself hostage to Russia, Canada’s government persists with its “aimless and divisive” energy policies.

July 27: Gazprom cuts the Nord Stream 1 gas supply to 20%; Biden’s administration is said to be “working furiously behind the scenes” to keep European allies united against Russia.

July 26: Kremlin says Nord Stream 1 still en route and second turbine is problematic; Announcement that Gazprom has to switch off a turbine; EU energy ministers OK draft document to drop gas demand by 15% (some say it’s watered down legislation); Anonymous source says some countries may resist gas sacrifices; 2 Cdn opinion columns – first says that Trudeau missed opportunity to lead LNG globally, second says pursuit of green energy/forfeit of energy security led to Europe to restart coal plants.

July 25: Gazprom says it will reduce gas supplies to Europe to 20% on July 27; Gazprom says it’s received paperwork about turbine delivery delay, but that other countries’ sanctions could still make the turbine hard to maintain; Siemens says Russia has the key to finalizing turbine delivery; Zelenskyy says Putin waging a gas war against Europe.

July 22: Russia says turbine delivery isn’t hitting snags; German natural gas company takes bailout from its government; Cost of gas in Europe rises because of delivery snag and higher German gas storage targets.

July 21: Nord Stream 1 restarts at 30-40% flow capacity; Missing turbine is stuck in Germany – could take weeks to get to Russia; German economy minister announces emergency measures to cut gas consumption.

July 20: Putin accuses Canada of turbine delay and eyeing market for itself; Gazprom says it still needs Siemens’ documentation to reinstall turbine; Cdn media say turbine’s in transit; Media report a draft EU emergency plan says countries need to cut gas demand by 10-15%; Germany more worried about cost than supply of gas, some suggest recession; German foreign affairs minister says Berlin told Ottawa that Germany might suspend military/economic aid to Ukraine unless Nord Stream 1 is returned; German Ambassador to Canada says she’s lobbying Ottawa to grant sanctions waiver for turbines; International Working Group on Russian Sanctions states it disagrees with Canada’s decision to return turbines.

July 19: Sources say Gazprom will restart a lowered Nord Stream 1 gas flow on July 21; Putin warns of continuing gas supply problems in late July – as little as 20% of full capacity; Putin says other pumping units could cause supply problems and need more maintenance; EU budget commissioner says the bloc assumes flow won’t restart and German government says it won’t assume anything yet; Sources say gas flow should return July 21 but at low flow; Gazprom says it can’t guarantee gas supply even with turbine return; European leaders are said to be resisting Ukraine’s call for tougher sanctions so they can replenish gas stocks for upcoming winter weather; Retired Gen. Rick Hillier says returning the turbines risks undermining efforts to punish Russia, and attention is waning for war in Ukraine; American Generals support Trudeau government’s turbine decision.

July 18: A Moscow newspaper says sources have said that Canada sent the turbines to Germany on July 17, and it will take another 10 days to get to Russia and be installed; Sources say Gazprom is ready declare retroactive force majeure, heightening fears the pipeline will stay offline; Ukraine’s former ambassador to Canada says the country is making a big mistake and is naïve to think the turbines’ return will help secure Europe’s energy needs; Germany considers keeping its three remaining nuclear plants going past it’s original 2022 shutdown date; Exports of Russian energy to China appear to be growing.

July 17: Prime Minister Justin Trudeau speaks with Ukrainian President Volodymyr Zelenskyy; A PMO readout afterwards doesn’t mention sanctions, nor the release of the turbines. It notes the two discussed the “importance of maintaining strong unity amongst allies and continuing to impose severe costs on Russia in the face of its illegal and unjustifiable invasion of Ukraine”; Other media reports say that Zelenskyy told Prime Minister Trudeau that Ukrainians “would never accept” Canada's decision to return the Nord Stream 1 turbine because it would encourage more sanctions violations.

July 16: Gazprom says it asked Siemens for turbine transit documentation on July 15; Chrystia Freeland confirms her approval of the turbines’ return; Some Ukranians say Canada’s turbine decision is wrong.

July 15: Senior Liberal ministers agree to explain the turbine decision at a special FAAE session; FAAE asks for other witnesses: German, Ukrainian and EU ambassadors, plus Ukranian Cdn. Congress witness; CPC critic Michael Chong proposes other witnesses, such as Freeland “[who’s] been silent and invisible”.

July 13: Min. Wilkinson says starting a German nuclear reactor doesn’t solve gas problems; Trudeau says turbine decision was difficult but necessary; Unnamed GAC officials say the turbine sanction exemptions are for up to two years; Russia says the shutdown is for routine maintenance, but observers say the shutdown is to retaliate against sanctions; Analysts expect the pipeline shutdown will go beyond the maintenance dates; German economic ministry won’t comment about Gazprom’s July 13 statement about needing documentation.

July 12: The Ukrainian World Congress and Ukrainian Canadian Congress urge the federal government to reconsider its turbine decision with statements and Cdn columnists are critical of decision.

July 11: Germany welcomes Canada’s turbine decision; Zelenskyy says decision is unacceptable; Ukraine ministries express deep disappointment; Canada’s Parliamentarians debate the turbine decision; U.S. backs turbine decision; Indirect turbine return route will start with Germany, then to Russia; Nord Stream announces the maintenance shutdown (July 11-21).

July 10: Wilkinson’s press secretary confirms there are six turbines at issue; Canadians of Ukrainian origin protest decision.

July 9: Wilkinson announces Siemens to get permit to return turbines.

July 8: Source says Canada/Germany turbine deal is close; German chancellor’s spokesperson says signals from Canada are positive re. turbine return; Ukrainian embassy says it hopes Canada stays on course with all sanctions; Media notes that Russia isn’t compensating for reduced gas supply during maintenance like it has before; Kremlin spokesperson says gas volumes might be boosted through Nord Stream on July 21 if the turbines are returned.

July 7: Germany’s vice-chancellor appeals to Ottawa to release turbines; Germany’s ambassador to Ottawa recognizes pressure on Ottawa from Ukraine; Germany’s ambassador to Ottawa mentions German trade delegation will come August 22-23 to discuss East Coast LNG export facilities replacing some Russian gas.

July 5: Canada’s hope for LNG exports rekindled at June’s G7 summit.

July 4: Germany’s energy regulator asks residents to save energy; Germany considers amendments to energy security laws; Germany’s energy suppliers face soaring costs due to Russia’s reductions.

June 28: German Chancellor defends G7’s softening on commitments to end public support for fossil fuels.

June 23: Germany activates second phase of its three-stage emergency plan for natural gas supplies.

June 17: Russia enters third day of gas flow cuts to Italy, Slovakia, France, Germany, and Austria. Prices soar; Russia says reductions are because of a technical problem; turbine(s) allegedly stranded in Montreal because of sanctions.

June 14: Gazprom says Nord Stream 1’s gas will drop by 40% because of the sanctioned turbine. Germany not too worried.

May: Siemens announces it’s exiting Russia over war in Ukraine. April: Media notes Germany is the biggest buyer of Russian oil. March: U.S. ramps up LNG shipments to Europe to reduce reliance on Russian oil; Sanctions are reported to be hurting Russia’s economy. February: Russia invades Ukraine. January: Media report on controversial not-yet-operational Nord Stream 2 pipeline that may send Russian gas to Germany, Germans may include the second pipeline as a way to hurt Moscow for threatening Ukraine.

Nord Stream 1 Turbine Chronology / Key Quotes

AUGUST 2

The G7 foreign ministers release a statement on energy security that condemns Russian attempts to weaponize its energy exports and pledges to work together to mitigate the impact of energy supply disruptions.

“In considering this and other options, we will also consider mitigation mechanisms alongside our restrictive measures to ensure the most vulnerable and impacted countries maintain access to energy markets including from Russia.”

“We welcome efforts by partners with the aim of replenishing gas reserves and increasing energy security and resilience, amid Russia’s increased weaponization of energy.”

G7 foreign ministers’ press release

AUGUST 1

Germany is already well into preparations for the upcoming winter, when its citizens will likely experience a massive drop in Russian energy supply. Some are voicing concern about potential social unrest during the hardship. Rationing and recession are also looming for Germany as electricity prices jump to record heights. If energy conservation methods fail, the German government may declare a gas emergency that allows them to take control of gas distribution.

German Chancellor Olaf Scholz says Trudeau called Russia's bluff by allowing the turbines repaired in Canada to be returned to Moscow's state-controlled Gazprom, arguing that this move eliminated a pretext for Russia President Vladimir Putin to reduce or stop deliveries of natural gas to Europe. Criticism around the turbines’ return is “baseless,” says Scholz, who adds that he’d welcome LNG supplies from Canada.

Debate in Germany is rising over whether the country should switch off its last three nuclear power plants as planned at the end of this year. The door to some kind of extension appeared to open a crack after the Economy Ministry in mid-July announced a new "stress test" on the security of electricity supplies.

JULY 31

Goldy Hyder, president of the Business Council of Canada, writes an opinion piece that says Canada must “do more to export critical resources to countries we count as allies,” including increasing the infrastructure needed to access global markets. Hyder says that Canada isn’t seen as dependable in diplomatic circles right now, and that developing Canada’s critical energy infrastructure would strengthen energy security for Canada and it’s allies, as well as improve global environmental security, since Canada is committed to reducing emissions and climate change.

JULY 29

Gazprom's senior manager says the delivery of a Nord Stream 1 gas turbine to Germany from Canada after maintenance was not in line with the contract, stepping up Gazprom’s criticism of turbine manufacturer Siemens Energy. The comments deepen the ongoing argument in which Russia has cited turbine problems as its reason for cutting gas supply via Nord Stream 1 — its main gas link to Europe — to just 20% of capacity.

Gazprom's deputy chief executive also said Russia had complained repeatedly to Siemens about problems with other turbines. Instead of responding, Siemens cited previous comments it’s made – that it has no access to on- site turbines and hasn’t received any damage reports from Gazprom.

A fellow at the Foreign Policy Research Institute writes that Europe should be able to withstand Russia’s energy threats, but it needs to urgently take steps to secure alternative supplies. He says that a recession is all but guaranteed and analysts predict that the EU won’t be able to reach its gas-storage target of 80%. He suggests that Europe can improve supplies by: increasing natural gas production in the Groningen gas field in the Netherlands, instead of taking the field offline next year over earthquake risks and environmentalists’ pressure; extending Germany’s nuclear power plants’ lifespan; and forming new partnerships with global energy suppliers.

The latest drop in the Russian gas supply (to 20%) may disrupt Asia’s energy security and could trigger Asia to back away from LNG. South Korea and Japan are anxious there will be energy hoarding, intensifying competition for LNG. Developing countries, especially those in South Asia, are struggling to compete with competitors among soaring energy prices – Pakistan and Sri Lanka have both been deeply affected.

“We see the risk of permanent LNG demand destruction in some countries that could hang on to coal and fuel oil and jump straight to renewables a few years down the road. That is unless more competitively priced LNG is made available to them soon”

Kaushal Ramesh, Singapore-based gas analyst at Rystad Energy (Aljazeera, July 29, 2022)

JULY 28

Autocratic leaders around the world are being approached by EU countries as potential sources of energy as Europe looks to wean off the Russian supply. These alternative sources are not necessarily ethical, including Saudi Arabia, Qatar, Algeria and Iran, which rank low in the Human Freedom Index.

Yulia Kovaliv, Ukraine's ambassador to Canada, says Moscow’s cuts to gas supply to Europe prove that the sanctions waiver for the Nord Stream 1 turbines should not have been granted in the first place.

“This decision of waiving sanctions actually did not have any practical impact on helping the European countries, first of all Germany, to secure their gas supply. Instead we see the next steps of Gazprom blackmailing their European consumers. Gazprom, we believe, took all the steps to provide the evidence that this permission needs to be removed.”

Yulia Kovaliv, Ukraine's ambassador to Canada (CBC, 28 July 2022)

The CBC notes that Natural Resources Canada, which granted the waiver, was “heavily critical” of the latest move by Gazprom but that neither it nor Global Affairs Canada responded directly when asked whether the Trudeau government was considering revoking the waiver in response.

“The Russian regime and its propaganda arms are clearly creating additional false pretexts to further and deliberately cause energy instability across Europe in an attempt to sow division amongst allies, as it continues to wage its unjustifiable war against Ukraine. We see through their lies. The only thing that would prevent gas from flowing to Europe is (Russian President Vladimir) Putin.”

Keean Nembhard, Office of the Minister of Natural Resources (CBC, 28 July 2022)

CPC MP Greg McLean (Calgary Centre, Shadow Minister for Natural Resources), writes in the National Post that while Germany finds itself hostage to Russia, Canada’s government persists with its “aimless and divisive” energy policies. McLean says the fact that Canada can’t deliver needed energy to its allies is Canada’s own policy failure, and that the current government seems oblivious to the consequences, “including capital flows to a hostile regime; manipulation of resource flow and pricing; Canadian diplomatic irrelevance.”

JULY 27

Citing equipment repairs, Gazprom cuts the amount of natural gas flowing through the Nord Stream 1 pipeline to 20 per cent of capacity, halving the 40 per cent capacity at which it was flowing after a July 21 re-start.

“Gas is now a part of Russian foreign policy and possibly Russian war strategy.”

Klaus Mueller, German energy regulator Bundesnetzagentur (Associated Press, 27 July 2022)

The administration of U.S. President Joe Biden is said to be “working furiously behind the scenes” to keep European allies united against Russia as Moscow further cuts energy supply to the European Union. An unidentified US official says the move was retaliation for western sanctions and puts the West in “unchartered territory” when it comes to addressing gas supply through the winter. The White House is said to have sent presidential coordinator for global energy Amos Hochstein to Europe on July 26 to discuss contingency planning with the US-EU energy task force created in March.

“Russia's energy coercion has put pressure on energy markets, raised prices for consumers, and threatened global energy security. These actions only underscore the importance of the work the United States and the European Commission are doing to end our reliance on Russian energy. We will continue working with our European partners to reduce dependence on Russian energy and support their efforts to prepare for further Russian destabilization of energy markets.”

U.S. National Security Council spokesperson (CNN, 27 July 2022)

JULY 26

  1. The Kremlin says the Nord Stream 1 turbine has not yet arrived from Canada and a second turbine is showing defects:

“Yes, indeed, there are some defects with the turbines. The turbine has not arrived after a major maintenance, it's on its way. We hope that it will happen... sooner rather than later. The situation is critically complicated by the restrictions and sanctions, which had been imposed against our country.”

Dmitry Peskov,Kremlin spokesman (Reuters, 26 July 2022)

  1. Both Peskov and Russian Foreign Minister Sergei Lavrov confirm Gazprom will have to switch off a turbine at the Portovaya compressor station “due to security reasons”.
  1. European Union energy ministers approve draft legislation designed to lower demand for gas by 15% from August 2022 through March 2023, with voluntary national steps to reduce consumption but also a trigger for mandatory actions across the 27-member EU if voluntary actions do not yield enough savings.

“The EU has taken a decisive step to face down the threat of a full gas disruption.”

“We have a blueprint to act together in a coordinated way. This was a test for the unity and resolve of the union.”

“The energy squeeze is reviving decades-old political challenges over policy coordination. While the EU has gained centralized authority over monetary, trade, antitrust and farm policies, national sovereignty over energy issues still largely prevails.”

  1. Some media report the EU legislation was “watered down” in negotiations, with opt-outs for island nations and possible exclusions for countries little connected to the European gas network.
  2. Bloomberg cites an unnamed senior EU diplomat saying some EU countries may resist making “sacrifices” for Germany, which “failed to diversify energy sources while lecturing southern nations on putting their fiscal houses in order.”
  3. Opinion columns in Canada include: the suggestion that the Trudeau government has prevented Canada from becoming a world leader in LNG exports (“theoretically, Europe would have been dramatically less dependent upon Russian gas than it is now”); the assertion that the “reckless pursuit of so-called 'green energy' and deliberate forfeiting of energy security” has forced Europeans to re-start coal-fired power plants in response to Russia’s throttling of natural gas supply.

JULY 25

Gazprom says it will reduce gas supplies to Europe to just 20% (33M cubic metres per day) of normal capacity starting July 27 at 4 a.m. GMT.

The company says it has “some paperwork” from Siemens Energy AG related to the delayed delivery of the Nord Stream turbine, but additional issues with sanctions remain unaddressed and “key to maintenance of the equipment”.

For its part, Siemens Energy says the transport of the serviced turbine to Russia “could start immediately, and the ball was in Gazprom's court”.

“The German authorities provided Siemens Energy with all the necessary documents for the export of the turbine to Russia at the beginning of last week. Gazprom is aware of this. What is missing, however, are the customs documents for import to Russia. Gazprom, as the customer, is required to provide those.”

Siemens Energy (Reuters, 25 July 2022)

Ukrainian President Volodymyr Zelenskyy says Vladimir Putin is waging a “gas war” against Europe:

“Russia is not going to resume gas supplies to European countries, as it is contractually obligated to do. And this is an open gas war, which Russia is waging against a united Europe. They don’t care what will happen to the people, how they will suffer from hunger due to the blocking of ports or from winter cold and poverty.”

Volodymyr Zelenskyy, Ukrainian President (CNBC, 25 July 2022)

JULY 22

Russia rejects news reports that the Nord Stream 1 turbine is stuck in transit, with Kremlin spokesperson Dmitry Peskov dismissing it as “nonsense”.

German natural gas importer Uniper says it has agreed to a 15B euro bailout from the German government. The government will take a 30% stake in the company, reducing the ownership of its Finnish parent Fortum to 56% from nearly 80%. The deal allows Uniper to pass on some of the costs of soaring gas prices to consumers in the coming months, something German Chancellor Olaf Scholz says will be offset by government support to poorer households.

Media report impacts on natural gas pricing across Europe because of issues with the Nord Stream 1 pipeline start-up but also because Germany raised its own gas storage targets.

JULY 21

Natural gas starts flowing through the Nord Stream 1 pipeline after the operator “successfully completed all planned maintenance works.” However, flow is well short of full capacity, at between 30% and 40%.

Media report that sources say the “missing turbine” that had been undergoing maintenance in Canada is stuck in transit in Germany because Russia had not given the go-ahead to transport it back. It was flown to Cologne, Germany, on July 17 by logistics firm Challenge Group but the return to Russia could be “days or even weeks”.

“Under normal circumstances, the maintenance of turbines is a routine operation for us. Naturally, we want to transport the turbine to its place of operation as quickly as possible. However, the time it takes is not exclusively within our control.”

Siemens Energy (BBC, 21 July 2022)

“Sometimes one has the impression that Russia no longer wants to take it back. That means the pretext of technical problems actually has a political background, and that is the opposite of being a guarantor for energy security in Europe.”

Robert Habeck, German Economy Minister (BBC, 21 July 2022)

German Economy Minister Habeck announces a new wave of emergency measures to cut the country’s consumption of gas, including requesting companies allow home working wherever possible to enable heating systems in larger buildings to be turned off, obligations to get rid of inefficient heating systems, and a ban on using gas to heat private pools.

JULY 20

Russian president Vladimir Putin accuses Canada of delaying the return of the Nord Stream turbine by Siemens, saying “Ottawa was eyeing the European market itself”.

Gazprom tweets that it has “still not received documentation from Siemens needed for reinstalling a turbine for the crucial Nord Stream 1 gas pipeline amid sanctions from Canada and the European Union”.

Tweets by CBC and others indicate European Commissioner for Energy Kadri Simson says the turbine is “now in transit”.

Media report on a draft emergency plan by the European Union that warns countries to reduce gas demand by 10-15% over the coming months, saying “without deep cuts now they could struggle for fuel during the winter if Russia cuts off deliveries”. Gazprom has already halted deliveries to some EU states. The draft plan, is said to propose a voluntary target over the next eight months “which could be made legally binding in a supply emergency”.

“Russia is blackmailing us. Russia is using energy as a weapon. And therefore in any event, whether a partial major cutoff of Russian gas or a total cutoff of Russian gas, Europe needs to be ready.”

Ursula von der Leyen, European Commission President (CNBC, 20 July 2022)

The Government of Germany says the supply of gas right now is “less of a concern than the cost”, which is already spiking across the EU. Some worry this will cause a recession just as economies start to recover from the COVID-19 pandemic.

Speaking to German media outlet RND on July 20, Foreign Minister Annalena Baerbock says Berlin “warned” Ottawa that Germany could be forced to suspend military and economic aid to Ukraine if the Nord Stream pipeline turbine was not returned. She says that if the “missing turbine led to a stoppage of natural gas from Russia, it could spark popular uprisings and force Berlin to halt support for Ukraine”.

When pressed by RND, Baerbock says her comment about civil unrest was “perhaps a bit exaggerated” but she was speaking of a scenario where “we had no more gas.”

“The Canadians said, ‘We have a lot of questions,’ and we said, ‘We can understand that, but if we don’t get the gas turbine, then we won’t get any more gas, and then we won’t be able to provide any support for Ukraine at all, because we’ll be busy with popular uprisings.”

German Ambassador to Canada Sabine Sparwasser tells the CBC that she is lobbying Ottawa to grant the sanctions waiver for all six Nord Stream turbines in Canada for repair, although she acknowledges that “their return won't ensure Russia responds in good faith and restores the full flow of gas”.

“In many, many experts' opinions, it's a pretext. But we take away that pretext. We're delivering the turbine and then we will see whether there is a weaponization of energy by stopping the delivery or not”.

Sabine Sparwasser, German Ambassador to Canada (CBC, 20 July 2022)

The International Working Group on Russian Sanctions issues a statement disagreeing with the decision taken by the Government of Canada on returning the turbines to Russia, saying the export controls waiver “sets an unacceptable precedent that will only embolden the Putin regime to continue to weaponize its energy leverage over the European continent.”

JULY 19

Bloomberg reports that unnamed people familiar with the matter say Gazprom is “poised to restart” gas exports through Nord Stream 1 on July 21. Shipments would resume after a 10 day maintenance period ends, but remain below normal after the company declared force majeure on some European clients.

Bloomberg also notes that in televised comments after a summit in Iran late July 19, Russian President Vladimir Putin warned that “delays in receiving (the turbine)… could lead volumes to be cut to only 20 per cent of capacity as soon as the end of this month, when another unit is due for maintenance”. Putin said, “Only two (turbines) are operating” and if the unit coming back from Canada doesn’t arrive in time to replace the one due to be sent for repairs, he warned, “just one will function, so 30 million cubic meters will be pumped per day.”

Putin says Gazprom was ready to fulfill its obligations on gas exports, but the capacity of Nord Stream 1 could be reduced due to problems with other pumping units, one of which would need to be sent for maintenance on July 26.

EU Budget Commissioner Johannes Hahn says the bloc is “working on the assumption that flows won’t resume”, and the German government says it “will wait until Monday at least before assessing whether flows are going to resume or not. That’s to give more time for the pipeline part to make its way back to Russia from Canada”.

Anonymous sources familiar with Russian export plans tell Reuters that gas flows are expected to restart as scheduled on July 21, although at lower flow than its capacity of 160M cubic meters per day.

Gazprom tells European customers it “cannot guarantee future gas supplies”, even if it receives the repaired turbines shipped from Canada as expected on July 24.

In resisting Ukraine’s call for tougher sanctions, especially with regard to gas supply, European leaders are said to reason “it is best to replenish stocks now while they have a chance, and not give Putin any excuse to cut off the gas later in the winter”.

“And in the past few days, several European leaders have publicly emphasized that it won’t benefit Ukraine if an already severe energy crisis turns even more brutal in the winter, possibly assisted by Putin strangling gas supplies.”

Retired Canadian general Rick Hillier tells an online panel hosted by the Ukrainian World Congress that Canada’s decision to return the newly repaired turbines “risks undermining a united global effort to punish Russia for its war in Ukraine”. He says attention to the war in Ukraine is waning amid economic issues like inflation and peoples’ vacation plans after two years of the pandemic, and the return of the turbines may signal for some that support for Ukraine is no longer a priority.

“In hindsight, (the return of the turbines) may be seen as the straw that broke the camel's back, and we may start to see a relenting of pressure from NATO and from the West in general… Instead of going upwards and onwards with more and more sanctions, this might be the straw that causes it to turn downwards”.

In the same webinar (and “to the embarrassment of the moderator”, the UWC’s Paul Grod), American Generals David Petraeus and Wesley Clark declare support for the Trudeau government’s decision on the turbines.

“I’m in broad agreement with Canada’s decision. It was a very tough one, but they had support from the U.S. and Germany.”

David Petraeus, former U.S. General (iPolitics, 22 July 2022)

"I think Canada weighed all the options, the information, the pros and the cons, and ultimately made a decision that was in the best interests of all involved. Because if a major country like Germany is deprived of its energy, the cohesion that has been truly extraordinary will be a potential casualty."

David Petraeus, former U.S. General (iPolitics, 22 July 2022)

“The key is that you have to have resilience. You have to bend but not break..... Accept some diplomacy, some resilience, some flexibility in the application of the sanctions. It's going to work out.”

Wesley Clark, former U.S. General (iPolitics, 22 July 2022)

JULY 18

Reuters reports that the Moscow-based Kommersant newspaper, citing people familiar with the situation, says Canada shipped a turbine(s) for the Nord Stream 1 gas pipeline to Germany on Sunday, July 17, with ferry transport to Germany and land transport to Russia (via Finland) and installation taking another 10 days.

Reuters reports on a letter from Gazprom to at least one “major” gas customer in Europe saying the company would declare force majeure, retroactively to June 14, saying it was unable to fulfill supply obligations through the Nord Stream 1 pipeline owing to what it called the “’extraordinary’

circumstances outside its control”. The letter is said to heighten fear that Russia would keep the pipeline offline in retaliation for sanctions.

In interview, Andriy Vitaliyovych Shevchenko, Ukraine's ambassador to Canada from 2015 to 2021, explains the implications of returning the turbines and why Canada would be “naive to assume the move would be helpful to ensure Europe's energy needs are met”.

“It's a big mistake, and it came as a true shock. In Ukraine, when you mention Canada, you will see a smile on people's faces. That's how we feel about Canada”.

Andriy Vitaliyovych Shevchenko, formerly Ukraine's ambassador to Canada (iPolitics 18 July 2022)

“It's an obvious reversal of policy, and it was the speed of the decision that doesn't sit well with Ukraine. It took years for Canada to make the decision to start selling arms to Ukraine. And it just took a couple of weeks to give turbines to the Russians. It's wrong on substance”.

Andriy Vitaliyovych Shevchenko, formerly Ukraine's ambassador to Canada (iPolitics 18 July 2022)

“We see the decision as a sign of weakness. It's a very short-sighted decision, and it doesn't provide a long- term solution. It actually doesn't even provide a short-term solution because there's no guarantee that the Russians, even after they get back the turbines, will give oil and gas to Europe. We've seen many times how they've blackmailed Europe, when they've promised something and they don't deliver. They play with the prices and they play with the supplies”.

Andriy Vitaliyovych Shevchenko, formerly Ukraine's ambassador to Canada (iPolitics 18 July 2022)

Germany’s economy ministry says it is considering extending the life of its three remaining nuclear plants, currently slated to be shut down at the end of 2022 as part of former Chancellor Angela Merkel’s pledge to phase out nuclear power. The plants account for 6% of Germany’s electricity production.

Public support for nuclear is said to be rising in the face of a possible cut-off of Russian gas. Bloomberg reports on rising exports of Russian energy to Asia since 2019, not a consequence of the “deterioration of Moscow’s relations with the West” but a sign of a “long-term realignment of energy flows that could be accelerated by the invasion of Ukraine” (Bloomberg notes that Gazprom supplies gas to China from east Siberia, separate from its Europe-bound pipelines).

JULY 17

Prime Minister Justin Trudeau speaks with Ukrainian President Volodymyr Zelenskyy.

A readout released by the Prime Minister’s Office after the phone call does not mention sanctions nor the release of the turbines. The statement notes the two did discuss the “importance of maintaining strong unity amongst allies and continuing to impose severe costs on Russia in the face of its illegal and unjustifiable invasion of Ukraine”.

Other media reports say that Zelenskyy told Prime Minister Trudeau that Ukrainians “would never accept” Canada's decision to return the Nord Stream 1 turbine because it would encourage more sanctions violations.

JULY 16

Gazprom tweets that on July 15 it “formally approached Siemens with a request to provide documents that, taking into account the current sanction regimes imposed by Canada and the European Union, would be necessary for transferring back to Russia (the required turbine engine)…”

Deputy Prime Minister of Canada Chrystia Freeland confirms she supports the decision to allow the Nord Stream turbines under repair in Montreal to be sent back.

“That was a very difficult decision for Canada and I understand the concern that Ukraine has about it, but it was the right thing to do. Canada is united and determined in our support of the people of Ukraine, we've contributed $3.4 billion in total financial and military support and I'm proud that Canada has led the way in many aspects to support Ukraine and oppose (Russian President) Vladimir Putin.”

Chrystia Freeland, Deputy Prime Minister of Canada (Canadian Press, 16 July 2022)

The CBC’s Evan Dyer notes that some Ukrainians argue that Canada’s decision is wrong, partly on the basis that there is a pipeline running through Ukraine that could bring Russian gas to Germany.

JULY 15

Opposition MPs demand that senior Liberal ministers appear at a special session of the Standing Committee of Foreign Affairs and International Development (FAAE) “by July 22, subject to their availability…noting the urgency of the situation”.. to explain Canada's decision to send the repaired turbine(s) back to Germany. The Government is said to agree, saying Foreign Affairs Minister Mélanie Joly and Natural Resources Minister Jonathan Wilkinson would be “happy to take questions about the matter”.

The Committee also identifies Ukrainian Ambassador Yulia Kovaliv, German Ambassador Sabine Sparwasser, EU Ambassador Melita Gabrič, and the Ukrainian Canadian Congress as potential witnesses. Conservative foreign affairs critic Michael Chong proposes other potential witnesses, including Deputy Prime Minister Chrystia Freeland, who Conservative international development critic Garnett Genuis says “has been be completely silent and invisible regarding the government’s decision”. Robert Oliphant, parliamentary secretary to the foreign affairs minister, responds that it is “just simply inappropriate to go on such a fishing expedition”.

JULY 13

Asked on CBC’s Power and Politics if a nuclear re-start in Germany would be a better option than reliance on Russian energy, Minister of Natural Resources Jonathan Wilkinson notes natural gas is used in industrial process applications and for home heating, and it is “just factually wrong” to suggest “starting up a nuclear reactor solves your gas problem”.

“We just announced a whole round of additional sanctions on Russia but the point of sanctions is not to hurt our allies, it is not to crater the German economy… I understand that the Ukrainian government is upset (with the return of the Nord Stream 1 turbines) and I certainly understand why, but I would say that if we, through our actions, splinter the unity of purpose of Europe and North America, we are not helping the Ukrainian cause…”

Prime Minister Justin Trudeau says the Government of Canada decision to allow Siemens Energy to return the turbines to Gazprom was “difficult” but necessary, given the need to support Germany and other European allies and shore up European energy supplies as they make a transition away from Russian energy sources.

“Canada remains one of the strongest allies and friends to Ukraine (and) we’re not alone: countries in Europe, particularly Germany, have stepped up massively in their support of Ukraine as well, and we need to hold together — particularly (when) faced with the attempts by Russia to weaponize energy policy, to divide us among ourselves.”

Justin Trudeau, Prime Minister of Canada (Global News, 13 July 2022)

Media report that unnamed Global Affairs Canada officials say the Government’s deal to exempt the repaired turbines from sanctions covers a period of up to two years and would allow the import and re- export of up to six units, “a far more extensive arrangement than had previously been disclosed”. The Globe and Mail notes the officials stress the exemption is revocable “at any time”.

“The revenues from gas and oil are directly supporting the Russian military. To waver even for two years, and showing Gazprom can get what it wants, is a dangerous precedent. They are stamping the status quo on weaponizing energy”.

Yulia Kovaliv, Ukraine's ambassador to Canada (CBC, 13 July 2022)

Media report that Russia calls the July 11-21 Nord Stream 1 “routine maintenance” but observers see “the politicization of energy and Russia's desire to cause chaos in Europe in retaliatory response to sanctions” leading to a delay in the reopening, or even an “indefinite closure of the pipeline”.

“Germany and many other European countries are still heavily dependent on energy imports from Russia. A further cut in supply could lead to a host of economic, social and political consequences and wreak havoc on the European economy. How did Germany, a country known for its meticulous planning and engineering, find itself in such a precarious situation?”

Garth Friesen, contributor (Forbes, 13 July 2022)

Analysts see it as “pretty likely” Russia would shut down beyond the 10-day maintenance stoppage because the pipeline is a “key tool in Russian President Vladimir Putin's arsenal to divide Europe over Ukraine ahead of winter, when the worst effects of a gas shortage would be felt”.

The German economy ministry declines to comment on Gazprom’s July 13 statement that it has no official documentation to show Canada will allow Siemens to ship the repaired turbine, saying only that Siemens was in the planning stage so that transport and deployment can take place as quickly as possible.

“Gazprom does not have a single document to allow Siemens to take out of Canada the gas turbine engine currently being repaired there. In these circumstances, it is not possible to draw an objective conclusion about the development of the situation and ensuring the safe operation of the Portovaya station — a critical facility for the Nord Stream gas pipeline.”

JULY 12

  1. The Ukrainian World Congress and Ukrainian Canadian Congress have been urging the federal government to reconsider its decision. In a media statement, the UWC says it filed a notice of application for a judicial review of the decision with the Federal Court.

“The application requests a declaration that the decision to provide a permit to Siemens was unreasonable and unauthorized and an order quashing the permit.”

Ukrainian World Congress (statement, 12 July 2022)

“Canada’s decision to break sanctions and send the Siemens’ turbine back to Russia is a grave mistake with dire consequences. This exemption to the sanctions regime against Russia is totally unacceptable. There are real alternatives to Germany’s gas needs, including buying through Ukraine’s pipeline. We cannot supply a terrorist state with the tools it needs to finance the killing of tens of thousands of innocent people.”

Paul Grod, President and CEO, Ukrainian World Congress (statement, 12 July 2022)

“This is not just about a turbine or possible many turbines to support Russia’s energy exports, this is about continuously succumbing to Russia’s blackmail. This could be Siemens’ moment. People and businesses who believe in freedom, democracy and human rights can and should unite to create breakthrough solutions to the energy crisis Russia has made. We came together to find vaccines to protect ourselves against COVID, we can find ways to protect ourselves from the Kremlin.”

Paul Grod, President and CEO, Ukrainian World Congress (statement, 12 July 2022)

“The decision is, almost explicitly, a surrender to the blackmail of Europe by Vladimir Putin.”

“By releasing a turbine necessary for a Russian pipeline, Canada may help Germany avoid a crippling natural gas shortage, but at the cost of undermining the integrity of its foreign policy.”

JULY 11

German Chancellor Olaf Scholz welcomes Canada’s decision to return the turbine, saying that the energy supply keeps Germany in a position to support Ukraine with humanitarian, financial and military aid.

Ukrainian President Volodymyr Zelensky calls Canada’s decision “absolutely unacceptable” and warns that Moscow will see it as a “sign of weakness”.

“If a terrorist state can squeeze out such an exception to sanctions, what exceptions will it want tomorrow or the day after tomorrow? This question is very dangerous.”

Volodymyr Zelensky, President of Ukraine (CBC, 13 July 2022)

In a July 10 statement, Ukraine's Foreign Affairs and Energy Ministries express “deep disappointment” in Canada's decision. Kyiv warns that the move would embolden Moscow to keep using its ability to choke off Europe's fuel supplies as a weapon.

“This dangerous precedent violates international solidarity, goes against the principle of the rule of law and will have only one consequence: it will strengthen Moscow's sense of impunity.”

Ukrainian Government (CBC, 11 July 2022)

Federal Parliamentarians debate the Government’s decision:

“That is fuelling Putin's war machine that is paying for the missiles raining down on Ukraine.”

Michael Chong, CPC Foreign Affairs Critic (CBC, 11 July 2022)

“This decision undermines all of that solidarity that so many Canadians have shown right across the country. Support for the democracy in Ukraine, and support for what Ukrainians are living through.”

Peter Julian, NDP House Leader (CBC, 11 July 2022)

“No one is going to benefit from having central Europe be in the cold this winter.”

Julie Dabrusin, Parliamentary Secretary to the Minister of Natural Resources (CBC, 11 July 2022)

In a statement, the U.S. State Department government says it backs Canada's decision to export the sanctioned equipment, arguing the move will help shore up European energy security.

Media note the turbines will be sent to Germany, whose government will then turn them over to Russia, an “indirect return route (that) could allow Canada to say it hasn't reneged on its sanctions”.

Nord Stream AG announces its maintenance shutdown, with work planned July 11-21.

JULY 10

Keean Nembhard, press secretary to Mr. Wilkinson, confirms that there are six turbines at issue.

Canadians of Ukrainian origin protest the decision on Parliament Hill and outside Montreal's City Hall. Protesters also gather outside Siemens Canada offices in the Montreal suburb of Dorval.

JULY 9

  1. Natural Resources Minister Jonathan Wilkinson announces on Twitter that Siemens Canada would be granted a “time-limited and revocable permit” to return the turbines, saying it is necessary to support “Europe's ability to access reliable and affordable energy” as it tries to transition away from reliance on Russian oil and gas.

JULY 8

Media cite an unnamed senior Canadian official who says Canada and Germany are close to a deal that would permit the return of the turbine, and that negotiations include Ukraine, with “all sides working for a positive resolution.”

Steffen Hebestreit, chief spokesperson for German Chancellor Olaf Scholtz, says: “I can confirm that there are positive signals from Canada. I cannot yet confirm that a delivery is on its way.”

The Ukrainian embassy in Ottawa says it hopes Canada will stay committed to full sanctions against Russia.

“We are aware of the dialogue between Canada and Germany regarding the Siemens turbine and do hope that the Government of Canada will ensure full integrity of the current sanctions regime.”

Media note that, in previous years, Russia has compensated for the reduced supply during Nord Stream maintenance by routing more gas via other routes, but “this year it has not done so — at least so far”. Kremlin spokesman Dmitry Peskov suggests possibly “boosting" volumes through Nord Stream beginning July 21 - but “only if Canada allows the return of a gas turbine critical to the operation of Nord Stream”.

JULY 7

Germany’s Vice-Chancellor and Economy Minister, Robert Habeck, appeals to Ottawa to release the turbine in order to allow Europe to replenish its gas supplies. He says the return of the turbine to Germany would remove the excuse that Russian President Vladimir Putin has used to slash gas flows to Europe.

Sabine Sparwasser, Germany’s ambassador to Ottawa, says she understands the Trudeau government is under pressure from Ukraine and the Ukrainian-Canadian community not to return the turbine.

Sparwasser notes that German Chancellor Olaf Scholz would lead a trade delegation to Ottawa on August 22-23 and wants to discuss how LNG export facilities on Canada’s East Coast could help Europe replace some of the Russian supply. A German official says Berlin hopes “the turbine dispute can be resolved before the visit”. According someone “familiar with the situation”, Germany expects Canada to send the turbine soon.

“Europe and Germany are very supportive of sanctions … but we also said we should not take sanctions that hurt us more than they hurt Russia.”

Sabine Sparwasser, Germany’s ambassador to Ottawa (Globe and Mail, 8 July 2022).

“Minister Habeck has called on the Canadian government to allow for the turbine to be released and to be sent to Germany. We don't make this case just for Germany. We make it for a lot of European countries who are still trying to fill their gas supplies in expectation of getting out of Russian gas.”

Sabine Sparwasser, Germany’s ambassador to Ottawa (Globe and Mail, 8 July 2022)

JULY 5

Media report that Canada’s hopes to see LNG exports to Europe from the East Coast have been “rekindled” by discussions between Chancellor Scholz and Prime Minister Trudeau at the June G-7 summit, as well as renewed interest by Calgary-based Pieridae Energy in its “shelved” Goldboro LNG project in Nova Scotia.

JULY 4

Klaus Mueller, President of Germany's energy regulator, the Federal Network Agency, calls on residents to save energy and prepare for winter as a consequence of reduced gas supply in June.

Germany is reported to be considering amendments to its energy security laws to allow the government to take stakes in utilities and impose a special levy on consumers as a means of passing on soaring energy costs equitably.

German Economy Minister Robert Habeck recently warned of “a Lehman effect” as energy suppliers squeezed by Russia’s reductions “face soaring costs to meet obligations to customers”. In the case of Uniper, the largest buyer of Russian gas in Germany, there have been discussions of a bailout (as a “last resort”) and the government wants to ensure similar rescue measures are available for other companies if required.

JUNE 28

After hosting the G-7 in late June, German Chancellor Olaf Scholz defends the group’s decision to soften commitments on ending public support for fossil fuel investments, saying “the war in Ukraine means time- limited support for new natural gas extraction projects may be necessary”.

JUNE 23

Germany activates the second phase of its three-stage emergency plan for natural gas supplies, warning that Europe's biggest economy faces a “crisis” and storage targets for the winter are at risk after Russia reduced energy deliveries to several countries. German Economy and Energy Minister Robert Habeck says “even if we can’t feel it yet — we are in a gas crisis”. Other countries, including Austria and the Netherlands, have also launched first-stage warnings about supplies and urged people to conserve.

Habeck accuses Moscow of “trying to destroy European unity and the solidarity it has shown with Ukraine”.

JUNE 17

Russia further reduces natural gas to Europe, cutting flows by half to Italy and Slovakia and completely to France, the third day of “significant reductions” already impacting Germany and Austria and spiking already-high energy prices driving record inflation in the European Union.

Russia blames the reductions on a “technical” problem with the Nord Stream 1 pipeline, noting Western sanctions meant equipment being refurbished in Canada was “stuck there”.

Media report on the turbine being “stranded” in the Siemens Energy facility in Montreal under section 9A991 of Canada's Restricted Goods and Technologies List, prohibited from export to “deny Russia access to goods and technology that could benefit their military.”

JUNE 14

Gazprom says natural gas deliveries through Nord Stream 1 to Europe will drop by 40% in 2022 because of the sanctioned turbine. At the time, Germany's Federal Network Agency says it “did not see gas supplies as endangered” and that the reduced flow “aligned with commercial behaviour and Russia's previously announced cut-off of gas to Denmark and the Netherlands”.

MAY

Siemens AG says it is exiting Russia where it has operated for almost 170 years. CEO Roland Busch says, “We condemn the war in Ukraine and have decided to carry out an orderly process to wind down our industrial business activities in Russia.”

APRIL

Media observers note Germany as the biggest European Union buyer of Russian oil and natural gas, “making it the EU's No. 1 financier of Mr. Putin's nasty war and slaughterhouse for civilians”.

MARCH

Media report on how the US is “ramping up” LNG shipments to Europe this year to help the continent phase out reliance on Russian energy. The global effort to wean Europe off Russian energy supplies was “at the center of President Joe Biden's summit with European Union leaders” in March, but a boost in U.S. deliveries only went part of the way in covering the shortfall Europe faces in turning away from Russian gas.

“Eliminating Russian gas will have costs for Europe. But it's not only the right thing to do from a moral standpoint, it's going to put us on a much stronger strategic footing.”

Media report (article paywalled) that the war in Ukraine and the wave of Western sanctions in response is “starting to hit Russia's economic engine: its prodigious oil-and-gas industry”, a sector making up 40% of the country’s budget revenue and employing 1.5M people, risking a “further blow for the beleaguered Russian economy”.

FEBRUARY

After months of build up, Russia begins its invasion of Ukraine.

JANUARY

Media report on the “controversial” and not yet operational Nord Stream 2 pipeline to supply Germany with Russian gas, a project German officials say they are “not above” including on a “menu of retaliatory economic measures against Moscow” because of its threats to Ukraine.

Questions & Answers for Appearance before House Standing Committee on Foreign Affairs and International Development (FAAE)

Nord Stream 1 Gas Pipeline

Q: What is Germany's reliance on Russian gas?

Answer:

Energy Exports and International Energy Security

Q: Given the situation in Europe, and Canada’s current position as a net energy exporter, why isn’t Canada taking steps, either unilaterally or by working with the U.S., to become the energy provider of choice?

Answer:

Q: What is Canada doing to support its European allies as they try to transition away from Russian energy?

Answer:

Q: Why is Canada not building additional pipelines to eastern Canada to supply energy to Europe?

Answer:

Q: Should Canada hit pause on its climate commitments in order to help our allies address energy security concerns?

Answer:

Q: How would an emissions cap affect global energy security, given the already high oil and gas prices that have only become more volatile with Russia’s invasion of Ukraine?

Answer:

Q: What is the situation with coal-fired plants in Europe right now? Is a renewed reliance on coal happening already – how much?

Answer:

Liquefied Natural Gas (LNG)

Q: What steps is the Government of Canada taking to advance LNG projects in Canada to help European partners reduce their reliance on Russian natural gas that powers their economies, while also respecting Canada’s climate commitments?

Answer:

Q: Are European prices affecting natural gas prices in Canada? What is the story regarding increased U.S. LNG exports to Europe and the impacts on Canadian NG prices?

Answer:

Q: What is the status of proposed LNG projects on the east coast? How soon could LNG exports to Europe begin? What role can the Government of Canada play to help advance these projects?

Answer:

Q: Why advance LNG if Canada is investing in advancing hydrogen development?

Answer:

Q: How will industry growth be accommodated under the emissions cap, which will be important for emerging opportunities including hydrogen, LNG, ammonia and petrochemicals?

Answer:

Energy Transition

Q: How will Canada reconcile its pledge to supply an additional 300,000 barrels to global markets consistent with its climate commitments?

Answer:

Q: What is Canada doing longer-term to help our allies address energy security and meet their energy transition goals?

Answer:

Q: How should we balance the need for government support to transition the oil and gas sector to net zero with commitments to phase out inefficient fossil fuel subsidies?

Answer:

Additional Questions & Answers (GAC)

“Recent developments concerning the Nord Stream 1 turbine”

House Standing Committee on Foreign Affairs and International Development (FAAE)

August 4, 2022

Background

QUESTIONS AND ANSWERS

Q: Why did Canada grant a permit to Siemens Canada?

1.   Removing Russia’s pretexts

2.   Ensuring Canada doesn’t stand in the way of Germany/Europe’s energy needs

3.   Maintaining allied support for Ukraine

Q: Why did Siemens need a permit?

Q: What is the process to issue a permit and under what conditions could Canada revoke it?

Q: What have Canada’s allies said about the decision to return the turbine?

Q: Why is Canada weakening its sanctions against Russia?

Q: Why did Canada allow restricted technology to be sent back to Russia?

Q: [REDACTED]

Q: Why can’t you share the details of the permit? Why was Gazprom provided the details?

Q: What can you tell us about the judicial review?

Q: What is Canada doing to ensure global energy security?

Q: Ukraine has publicly indicated that it has alternative pipelines that could accommodate similar volumes of gas to Nord Stream 1. Why didn’t Canada consider this option?

Q: Why isn’t Siemens speaking up about the situation, to counter Russian misinformation?

Q. If Russia continues to restrict gas flow, even after the return of this turbine, will Canada continue to allow additional turbines to come to Canada for repair?

Q. You say the turbines are not restricted technology. Why then are they NOT on the Restricted Goods and Technology List (RGTL)?

Q. [REDACTED]

Q. When are the next ones coming?

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