Canada will provide CAD115 million (about $84.9 million at current exchange rates) to urgently restore Ukraine’s energy system, Canadian Deputy Prime Minister and Finance Minister Chrystia Freeland said.
“As the people of Ukraine continue their heroic resistance, we must all do even more to enable them to endure this struggle. That’s why Canada will provide $115 million from tariff revenues from imports from Russia and Belarus to urgently restore Kiev’s energy system,” she wrote on Twitter.
Canada’s Finance Ministry recalled in a press release Tuesday that on March 2, Canada became the first country to remove most-favoured-nation status for imports from Russia and Belarus, resulting in a 35% tariff on virtually all goods entering Canada from those two countries.
In June, G7 leaders pledged to explore ways to use revenues generated by tariff measures against Russia to help Ukraine. “As the first G7 country to fulfill this commitment, Canada will provide Ukraine with $115 million (Canadian) – the amount of expected tariff revenues from Russian and Belarusian goods – as part of the World Bank’s Re-PoWER Ukraine Project,” the Canadian Treasury said.
It recalled that this fund was recently established to facilitate grants from international partners to restore basic energy services in Ukraine.
Since Russia’s brutal and illegal invasion, Canada has already provided Ukraine with a total of CAD2 billion in direct financial assistance in 2022 and an additional CAD500 million in bonds in support of Ukrainian sovereignty earlier this month. This year, Canada has also provided over CAD2.5 billion in military, humanitarian and other assistance to Ukraine.
Canada has issued CAD500 million in bonds in support of Ukraine, the purchase of which Canadians will help the Ukrainian government continue to provide financial support as well as help rebuild critical infrastructure, according to the Canadian government’s website.
“The Canadian government is issuing $500 million in Ukraine sovereignty bonds today, the prime minister first announced last month. These funds will help the Ukrainian government continue to provide essential services to Ukrainians this winter, such as pensions, fuel purchases and the restoration of energy infrastructure,” the report said.
It is noted that the Canadian government has partnered with participating financial institutions to offer Canadians the opportunity to purchase Ukrainian sovereign bonds with a $100 face value. “Canadians interested in purchasing this bond should contact their investment adviser or financial institution between now and November 29, 2022,” the statement said.
“Canadians who buy Ukrainian sovereign bonds will effectively be purchasing a regular five-year Canadian government bond with a current yield of approximately 3.3%, depending on market conditions at the time of issuance. Canadians can be confident in the safety of their investment, which is fully supported by Canada’s ‘AAA’ credit rating,” the agency explained.
Reportedly, after the completion of the bond issue and subject to negotiations with Ukraine, an amount equal to the proceeds of the bond issue will be transferred to Ukraine through the International Monetary Fund (IMF) account for Ukraine.
For his part, Ukrainian Prime Minister Denis Shmygal thanked his colleague Justin Trudeau and Deputy Prime Minister and Finance Minister Chrysta Freeland for their assistance.
“Today Canada issued $500 million in Ukrainian sovereignty bonds. The proceeds will help provide vital payments and services for Ukrainians this winter. Thanks to Justin Trudeau, Hrysta Freeland and all Canadians for supporting Ukraine,” Shmygal wrote on his Twitter microblog.
As reported on November 18, the Government of Canada began collecting applications to buy five-year bonds worth 500 million Canadian dollars (CAD, about 373.4 million at current exchange rates) – Ukraine Sovereignty Bonds – for financial support for Ukraine, offering to submit them until November 29 through participating financial institutions.
The Government of Canada will issue five-year bonds – Ukraine Sovereignty Bonds – to financially support Ukraine, Prime Minister Justin Trudeau said at the XXVII Triennial Congress of Ukrainian Canadians in Winnipeg on Friday.
“Canada remains unwavering in our commitment to support the people of Ukraine in their fight against Putin’s illegal and barbaric invasion, and we will continue to do everything we can to ensure Ukraine has the resources it needs to win. Now, through a bond designated for Ukraine, Canadians can contribute to this critical effort through a new federally backed investment,” Deputy Prime Minister and Finance Minister Chrystia Freeland said in a statement on the Prime Minister’s website.
Trudeau announced that the Government of Canada will issue Ukraine Sovereignty Bonds, which will help the government continue operations, including providing essential services to Ukrainians, like pensions, and purchasing fuel before winter.
The equivalent proceeds from this five-year bond will be channelled directly to Ukraine through the International Monetary Fund’s (IMF) Administered Account. This builds on the Government of Canada’s CAD 2 billion in financial assistance to Ukraine this year, the report said.
According to it, the new bonds will be offered by the participating financial institutions at denominations and rates to be announced shortly.
Those who decide to invest in this bond will actually purchase a regular five-year Canadian government bond backed by Canada’s AAA credit rating. Canada is the first country in the world outside of Ukraine to offer bonds in support of Ukraine for purchase.
To increase pressure on Putin’s regime, Trudeau also announced that Canada is imposing new sanctions on individuals and entities complicit in Russia’s invasion of Ukraine. These new measures will target 35 senior officials of energy entities, including those of Gazprom and its subsidiaries, and six energy sector entities involved in Russia’s ongoing violations of Ukraine’s sovereignty and territorial integrity. “These new measures build on the sanctions we have already implemented against over 1,400 individuals and entities,” he said.
He also announced that Canada intends to impose new sanctions on members of the Russian justice and security sectors, including police officers and investigators, prosecutors, judges, and prison officials, involved in gross and systematic human rights violations against Russian opposition leaders.
Trudeau said that the 39 armoured combat support vehicles (ACSVs) Canada announced for Ukraine in June have started to arrive in Europe, where training for the Ukrainian forces is underway, with the last expected to be delivered end of November. Since February 2022, Canada has committed over CAD 600 million in military assistance to Ukraine. Canada will continue to help Ukraine meet its urgent requirements for military and defence equipment.
The prime minister also said that Canada is allocating $55 million in previously announced funding to the International Federation of Red Cross and Red Crescent Societies, the International Organization for Migration, and the United Nations High Commissioner for Refugees and other humanitarian partners to support winterization initiatives. This includes providing shelter and distributing essential items such as blankets, clothing, heating appliances, and fuel.
In addition, the Prime Minister announced the launch of the Canada-Ukraine Science Partnership, which will invite up to 20 Ukraine-based scientists to come work and live in Canada.
According to the report, streamlining current visa and travel requirements, as of October 18, 2022, close to 315,000 applications have been approved.
A CAD 450 million (equivalent to $350 million) concessional loan from Canada has been transferred to the state budget of Ukraine.
According to a press release from the Ministry of Finance on Thursday, the funds were provided through the mechanism of the Administrated Account of the International Monetary Fund (IMF). The amount of the loan from Canada is CAD 1.45 billion (equivalent – $1.2 billion). The repayment period is 10 years, the interest rate is 1.69% per annum.
Minister of Finance of Ukraine Serhiy Marchenko thanked the Government of Canada and Deputy Prime Minister, Minister of Finance of Canada Chrystia Freeland for their uncompromising support of Ukraine.
Ambassador of Ukraine to Canada Yulia Kovaliv said that the allocated funds will be used to purchase natural gas to support the heating season.
According to her, the total amount of financial assistance to Ukraine from Canada since the beginning of the war has reached CAD 1.95 billion.
The Cabinet of Ministers of Ukraine has amended the Basic Conditions for State Foreign Borrowing in 2022 by attracting a loan from Canada, presented by the Minister of Finance, the press service of the Ministry of Finance of Ukraine reported on Friday.
“The draft resolution was developed by the Ministry of Finance to increase the amount of a concessional loan by 0.45 billion Canadian dollars (equivalent to 0.351 billion US dollars) under a loan agreement between Ukraine and Canada, as a result of which the loan amount will be 1.45 billion Canadian dollars (equivalent to . 1.131 billion US dollars),” the message says.
It clarifies that the funds will be directed to the state budget to finance priority spending, in particular to ensure priority social and humanitarian payments.
The agency recalls that on June 17, the state budget of Ukraine received 1 billion Canadian dollars (equivalent to 0.773 billion US dollars) of a loan on preferential terms from Canada.
“These are the first funds that Ukraine received through the mechanism of the administrative account of the International Monetary Fund. The loan repayment period is 10 years, the interest rate is 1.69% per annum. The specified conditions have been preserved for additional tranches of the loan,” the Ministry of Finance summed up.
The Canadian Foreign Ministry announced the introduction of new sanctions against Russia in response to the ongoing military aggression against Ukraine.
“On July 14, 2022, Canada made further amendments to the rules on special economic measures (Russia) to prohibit the provision of two production services to the Russian oil and gas, chemical and manufacturing industries,” the document said on the ministry’s website.
It is noted that eight new industries from these sectors have been added to the sanctions list.
According to the Ministry of Foreign Affairs, “any person in Canada and any Canadian outside of Canada is prohibited from providing services to Russia or any person in Russia” related to the production of metal products, computer, electronic and optical products, electrical equipment, cars, trailers and semi-trailers, transport equipment, land transport and pipelines.
