Ukraine calls on Canada to suspend turbine exemption


OTTAWA-

With German Chancellor Olaf Scholz due to arrive in Canada on Sunday, Prime Minister Justin Trudeau faces fresh calls from Ukraine to rescind a permit to ship repaired turbines in Montreal to a Russian energy giant.

Scholz, who took over from Angela Merkel in December last year, is scheduled to touch down in Montreal on Sunday evening for a three-day visit that also includes scheduled stops in Toronto and Stephenville, NL.

He will be accompanied by Vice-Chancellor Robert Habeck, in charge of the country’s energy dossier.

A statement from the Prime Minister’s Office said the visit will advance shared priorities between Canada and Germany “including our unwavering support for Ukraine, the protection of peace and security in Europe and around the world. , and addressing the broader global impacts of Russia’s illegal and unjustifiable invasion.”

Ukraine has criticized Trudeau and his government for agreeing last month to a request from Germany to exempt Siemens Canada from sanctions against Russia so that it can return a turbine for use in the Nord Stream 1 gas pipeline that provides electricity. natural gas to Germany.

The turbine was being repaired at Siemens’ facilities in Montreal, the only place in the world capable of servicing the equipment. It was delivered to Germany and was supposed to leave from there for Russia, but the Russian authorities have so far refused to accept it.

Russia has also reduced gas flows through the pipeline to 20% of capacity and recently announced it will shut the line entirely for three days at the end of the month, citing the need for unscheduled maintenance.

Canada’s permit also allows Siemens to import, repair and return five other turbines used in Nord Stream 1, depending on their maintenance schedule, and is valid until the end of 2024.

In an interview, Ukrainian Ambassador to Canada Yulia Kovaliv again called for the cancellation of the waiver.

She said it was clear Russia would not accept the turbine Siemens delivered to Germany and accused Russia of using the gas supply to terrorize Europe.

“Our position is pretty clear: We believe this waiver should be reversed and now,” she said.

“If that was an argument to call Putin’s bluff, everyone has seen for a few weeks that it’s now quite obvious that it’s Russian games.”

Orest Zakydalsky of the Ukrainian Canadian Congress said the chancellor’s visit “will be a chance for them to reverse the policy and cancel the permit.”

Ministers defended the move as necessary to secure Germany’s gas supply, as well as calling Putin’s bluff. They argue the Kremlin may have used Canada’s refusal to return the turbine to blame sanctions for energy shortages in Europe, which could undermine public support for Ukraine.

Natural Resources Minister Jonathan Wilkinson said in an interview that Canada will continue to “assess” its decision to allow the turbine to return to Gazprom, the Russian energy giant that operates Nord Stream 1.

“It was obviously a tough decision and it’s a decision we made based on the fact that we think not sending the turbine back would have given Putin an excuse,” he said.

“This would have potentially had the effect of undermining the support that Ukraine enjoys from some European populations.”

Wilkinson said he now felt Russia’s position had been exposed and there was growing pressure on Gazprom and the Russian government.

“Our expectation and our hope is that the turbine will indeed return to Gazprom, and that it will eventually come into service.”

He added that the government stands by its decision and believes it is far too early to think about changing its exemption, but said “we will have to see what evolves over the next few months”.

“We will obviously continue to have a dialogue with our European partners and our German partners,” he said.

Scholz and Trudeau plan to discuss energy security and the transition to clean energy, “including through secure access to key resources like clean hydrogen and critical minerals,” according to the Prime Minister’s Office.

In Stephenville, leaders are expected to sign a pact that will set aggressive deadlines and targets for the export of hydrogen to Germany, although some experts warn that the deal will only serve a small, distant and costly part. of the solution to Europe’s energy crisis. .

A four-partner consortium calling itself World Energy GH2 plans to build a zero-emissions plant in the Newfoundland community that will use wind power to produce hydrogen and ammonia for export.

If approved, the project would be the first of its kind in Canada.

The consortium said the first phase of the proposal calls for the construction of 164 onshore wind turbines to power a hydrogen production facility at a deep-water port. Long-term plans call for tripling the size of the project.