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Russia-Ukraine: Canada revokes sanctions exemption

by Edie Jenkins

OTTAWA-

Canada has revoked a sanctions exemption that had allowed a Montreal company to repair turbines on the Nord Stream pipeline operated by Russian energy giant Gazprom.

Wednesday’s decision comes three months after explosions, which Swedish investigators said were the result of ‘gross sabotage’, rendered the pipeline carrying natural gas under the Baltic Sea from Russia to Germany inoperable. .

“Canada makes this decision recognizing that the circumstances surrounding the granting of the waiver have changed,” Natural Resources Minister Jonathan Wilkinson and Foreign Affairs Minister Melanie Joly said in a joint written statement on Wednesday.

“It no longer performs its intended function.”

They said the aim was to call out Russian President Vladimir Putin’s “bluff” when he blamed the turbines for causing maintenance problems that prevented Russia from getting gas to Germany.

The pipeline is owned by Gazprom, but Siemens Canada had a contract to service the pipeline’s turbines at its Montreal facility. One of the turbines was in Montreal when Canada sanctioned Gazprom over Putin’s decision to invade Ukraine.

Russia began limiting gas flows to Germany in June, citing maintenance issues. Germany, facing an energy supply crisis, has asked Canada to exempt turbines from sanctions.

Canada agreed, hoping to prove that Putin would still not ship gas to Germany even after recovering the turbine.

“With the granting of this waiver, the government removed Putin’s excuse to withhold gas exports to Europe,” they said.

But Putin never resumed full shipments, and in August pipeline flows were completely halted. In September, explosions were detected along the road.

“Putin was forced to show that his intention was never to return Nordstream 1 to full operation,” the federal ministers said.

The exemption covered six wind turbines, but only one was in Canada. The other five were not shipped to Canada as a result of the exemption.

Canada’s exemption has caused political turmoil, with Germany desperate for access to more energy and Ukraine accusing Canada of playing into Putin’s hands and showing that the West’s resolve against Russia was “weak”.

A House of Commons committee was formed to study the issue and held several hearings, but collapsed in November when the Tories accused the Liberals of filibustering. The committee has not met on this issue since mid-November.

Prime Minister Justin Trudeau spoke by phone with German Chancellor Olaf Scholz on Tuesday, and the issue of energy and exemptions was discussed.

Ukraine has also been notified of the decision.


This report from The Canadian Press was first published on December 14, 2022.

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