Pipes of the onshore facilities of the Nord Stream 1 gas pipeline are pictured in Lubmin, Germany, March 8, 2022. HANNIBAL HANSCHKE/Reuters
Ukraine’s government on Sunday expressed “deep disappointment” over Canada’s decision to send back refurbished Russian-owned gas turbines that were blocked in Montreal due to sanctions against Moscow, warning that the move would encourage Russia to continue using energy as a weapon.
Russia last month cited the delayed return of turbine equipment that Germany’s Siemens Energy serviced in Canada as the reason for the reduction in flow to 40 percent of capacity through the Russia-to-Germany Nord Stream 1 pipeline
On Saturday, the Canadian government announced it would return the turbines — using an exception to circumvent Ottawa’s sanctions against Russia — citing requests from Germany and other European countries trying to replenish gas supplies for the coming winter months.
The grounded turbines will be sent to Germany, whose government will then hand them over to Russia.
Also, as the Globe first reported on Sunday, the number of Nord Stream turbines stranded in Montreal and turned back is much higher than originally thought.
A government source said there were actually six turbines. The Globe is granting anonymity to the source because it is not authorized to discuss the matter publicly.
In a statement posted on Ukraine’s Foreign Ministry website, Kyiv described Canada’s decision to issue an export permit allowing the return of the repaired turbine equipment as “tailoring the sanctions regime to Russia’s whims.”
“This dangerous precedent violates international solidarity, contradicts the principle of the rule of law and will have only one consequence: it will strengthen Moscow’s sense of impunity,” the Ukrainian Foreign Ministry and the Ukrainian Energy Ministry said.
In the statement, Kyiv also disputed Russia’s claim that it required the returned turbine equipment to fulfill its natural gas supplies to Germany.
The Ukrainian government has said that Russia’s demand for the return of turbine equipment to resume greater natural gas supplies to Europe amounts to blackmail and unconventional warfare tactics. Returning the equipment “will allow Russia to continue using energy as a tool for hybrid warfare against Europe,” Kyiv said.
Canadians of Ukrainian descent protested the decision Sunday on Parliament Hill and outside Montreal City Hall. Later on Sunday, protesters also gathered outside Siemens’ Canadian offices in the Montreal suburb of Dorval.
Canada’s Sanctions Act contains mechanisms to allow the government to issue export permits even when such exports may be prohibited.
On Saturday, Canada’s Natural Resources Minister Jonathan Wilkinson announced that the repaired turbine equipment would be sent to Germany with a special export permit. The indirect process would allow Canada to say it has not waived sanctions imposed after the invasion of Ukraine. These restrictions prohibit the export of certain goods and technology to Russia, including the turbine.
“Canada will grant a time-limited and revocable permit to Siemens Canada to allow the return of the refurbished Nordstream 1 turbines to Germany, supporting Europe’s ability to access reliable and affordable energy as they continue to move away from Russian oil and gas,” said Mr. Wilkinson said in his statement. “Without the necessary supply of natural gas, the German economy will suffer very seriously and Germans themselves will be at risk of not being able to heat their homes as winter approaches.”
German officials said Moscow was using the sanctioned turbine as an excuse to put economic pressure on Europe. Returning the turbine would remove that excuse, German Vice Chancellor and Economy Minister Robert Habeck said in an appeal to Prime Minister Justin Trudeau earlier this week.
In his statement, Mr. Wilkinson explained why Canada is acting to help Germany at the expense of sanctions that are meant to help Ukraine. “On the eve of the winter months, the Russian regime and its propaganda arms seek to use the instability they have created to justify further destabilization of European energy security,” he said. “In doing so, President Putin also hopes to sow division among allies who have shown unprecedented unity in support of Ukraine.” We cannot allow this to happen.”
He added that Canada will continue to impose sanctions on Moscow and is working with European leaders to end dependence on Russian gas imports as quickly as possible and to stabilize energy markets.
Alexandra Chychizh, national president of the Ukrainian-Canadian Congress, issued a strongly worded statement saying the government had bowed to “Russian blackmail.”
“By accepting Germany’s request, Canada would not only violate its policy of isolating Russia, but would also set a dangerous precedent that would lead to a weakening of the sanctions regime imposed on Russia,” she said.
She added that the consequences of Canada’s “capitulation to Russian ultimatums” would be far-reaching.
“A precedent has been set where Russians know that at the first sign of difficulty our government will submit to Russian blackmail and energy terrorism.” This will inevitably encourage Russia to further aggression, making Ukraine, the European Union and Canada less secure.
Ms Chyczij added that the Kremlin’s past appeasements led to the Russian occupation of Crimea and Donbass in 2014 and the full-scale attack on Ukraine on February 24 this year.
“This decision will ensure that the coffers of the Russian state budget will continue to be filled with European money, which will be used to finance Russia’s genocide against the Ukrainian people,” she said.
Conservative foreign critic Michael Chong said Sunday the Liberal government’s decision would “wickedly” increase Russian gas exports to Europe, even as Ottawa denies new pipelines and LNG terminals would boost Canadian gas exports.
“Instead of circumventing a global package of sanctions designed to punish Putin, the Liberal government should approve new LNG pipelines and terminals so that Canadian natural gas can displace Russian energy supplies to Europe,” he said in a statement signed by several other conservative MPs.
The Trudeau government moved quickly on Saturday to blunt criticism by announcing new sanctions against Russia. Foreign Affairs Minister Melanie Joly said in a statement that the restrictions would apply to “pipeline transport and the production of metals and of transport, computer, electronic and electrical equipment and machinery”.
Once the measures take effect, she said, Canadian firms will have 60 days to enter into contracts with targeted Russian industries and services.
Sabine Sparwasser, Germany’s ambassador to Canada, expressed her country’s gratitude to Ottawa for releasing the turbines.
“We know it wasn’t easy. But it is critical that we help Canada’s European allies steadily build independence from Russian energy, and that preserves our unity,” she said in a statement.
Germany remains an ally of Ukraine in the war against Russia through military and financial support and through its support for Kyiv’s bid for membership in the European Union, she added.
Mr. Trudeau has been under intense pressure from German Chancellor Olaf Scholz, who raised the issue of the turbines with him at the G7 meeting in late June. Mr. Scholz is planning a trade visit to Canada on August 22 and 23 to push for LNG export facilities on Canada’s east coast.
Germany is also interested in investing in green hydrogen projects and in the extraction of critical minerals essential to the country’s automotive, chemical and high-tech industries.
With files from Reuters and the Associated Press
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