Canada contributing $5B from frozen Russian assets and millions more in aid for military, energy and humanitarian efforts
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If a peace deal can somehow be brokered to end the Russia-Ukraine war, Prime Minister Justin Trudeau said Monday that the possibility of Canadian troops being deployed to maintain the truce “is on the table.”
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During a news conference following a summit in Kyiv to mark the third anniversary of the Russian invasion, Trudeau was asked if he meant Canada was prepared “to send boots on the ground” to stand alongside European allies in guaranteeing Ukraine’s long-term security.
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Trudeau first responded by remarking on the support provided years before the incursion and the connection between the two nations and then defended his administration’s efforts to increase its defence spending during his time in office.
“As to how we will be there,” he added, “we will work with our neighbours on it, but everything is on the table because we need to make sure that might no longer makes right in this world.”
After the formal news conference, Trudeau told reporters a ceasefire was the “first priority.”
“When we establish the way we’re going to keep a lasting peace … Canada will be involved, but we’re not at that position yet,” he said, adding that sending Canadians to Ukraine “is something to take very, very seriously.”
The reporter’s initial question came with a follow-up for both Trudeau and Zelenskyy regarding the importance of having a North American ally at a time when President Donald Trump is testing both country’s relationships with the United States.
Zelenskyy skirted the second part of the question, instead thanking Trudeau for facilitating a hybrid G7 call with Trump regarding the war, but the moderator moved on to the next question before Trudeau could respond.
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Last week, the U.S. reportedly failed to invite Ukraine or any of its many European allies to join talks between Russian and American officials in Saudi Arabia and Trump later blamed Ukraine for starting the war, a comment he has since walked back.
Trump was meeting with French President Emmanuel Macron in Washington and did not join Zelenskyy, Trudeau and a dozen European heads of state in Kyiv.
Russia on the hook for $5B loan
Trudeau’s admission on troops came after he announced a spate of funding for Ukraine, starting with $5 billion through the G7’s Extraordinary Revenue Acceleration (ERA) loan mechanism announced at last year’s summit in Italy and finalized in October by then Finance Minister Chrystia Freeland.
The idea, first proposed by Canada according to a finance spokesperson, is to draw $68 billion from the reported $381 billion in frozen Russian central bank assets held in Canadian, European and other jurisdictions, and loan it to Ukraine. The money will be repaid by interest earned on the held assets, meaning “Russia, not Ukraine, will bear the burden of repayment.”
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The first half of Canada’s contribution — the largest per capita among the G7 nations — will be issued “in the coming days, with the remaining sum soon to follow.”
Protecting the power grid
The prime minister also said Canada would provide $50 million, through the Ukraine Energy Support Fund, this year so Ukraine can continue repairing and replacing energy equipment and infrastructure damaged by Russian attacks.
At last year’s Summit on Peace in Switzerland, Canada committed $20 million to the same job.
On Facebook Monday, Ukrainian Energy Minister Herman Halushchenko said Russia has launched over 30 attacks on the country’s energy systems resulting in billions in damages since February 2022.
He said Russian troops have occupied facilities producing 18 gigawatts of power over the past three years, including Europe’s largest nuclear power plant in Zaporizhzhia Oblast.
A report issued by the World Bank, the European Commission, and the United Nations on Tuesday morning estimated the country’s total recovery cost after three years of war to be CAD $747.8B over the next decade. The World Bank calculated Ukraine’s annual GDP before the war was $284B, per Trading Economics.
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Military money
Canada will also send another 25 light armoured vehicles (LAV III) and two armoured combat support vehicles. Ukrainian troops will be trained on the latter in Germany “shortly,” according to the PM.
Four F-16 flight simulators are also on their way to Ukraine, a component of the previously announced $389 million over five years for pilot training.
The National Post is waiting for more information from the Department of National Defence regarding the cost and delivery of the equipment.
Since February 2022, the value of military assistance provided by Canada — “multi-mission drones, armoured combat support vehicles, anti-tank weapons, small arms, M777 howitzers and associated ammunition — is $4.5 billion.
Trudeau also announced $40 million for “urgently needed capabilities to the Armed Forces” under the previously inked Agreement on Security Cooperation between Canada and Ukraine.
The 2024 bilateral pact called for Canada to provide $3.02 billion in macroeconomic and military backing for Ukraine.
This year, $15 million of that will stay at home to Canadian firms looking to expand into Ukraine’s defence sector.
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A detailed breakdown of Canada’s entire military assets sent abroad is available on the government’s website.
Humanitarian help and local redevelopment
Trudeau announced aid totalling $118.5 million for various sectors, many of them over several years.
The big ticket items are $14 million over one year, in partnership with the United Nations partners and other organizations, to supply humanitarian assistance.
Canada is also shelling out $5 million over one year for personal protective equipment to protect against chemical, biological, radiological, and nuclear weapons, and $3 million over one year to bolster Ukraine’s nuclear security.
Values for other initiatives range between the tens of thousands to $25 million and will be delivered over two to seven years.
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Ukraine’s Canadian tab approaching $20B
Since the war’s outset and including the ERA loan, Canada’s total “multi-faceted assistance” to Ukraine amounts to $19.7 billion, $12.4 billion of which has been monetary aid.
In the Kiel Institute for the World Economy’s Ukraine Support Tracker — which gauges military, financial and humanitarian contributions — Canada ranks fifth overall in allocations.
Broken down and based on GDP, Canada is first in financial allocations, but 22nd and 20th in humanitarian and military aid, respectively.
— With files from the Canadian Press
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