Canada's decision to return Russian pipeline turbines to be studied by MPs

OTTAWA -

MPs are launching a full study and will be calling for key ministers and international officials to testify on the federal government's contentious decision to grant a two-year exemption to federal sanctions, allowing a Canadian company to return repaired turbines from a Russia-Germany natural gas pipeline.

Members from all parties agreed to launch the special summer probe into "the government's decision to circumvent Canadian sanctions to allow the export of Gazprom turbines" during an emergency meeting on Friday morning, though the decision on who to call as witnesses prompted considerable debate.

Ultimately, the committee voted to call Natural Resources Minister Jonathan Wilkinson and Foreign Affairs Minister Melanie Joly to explain the move. MPs also want to hear about the impact of this decision from the Ukrainian Canadian Congress, the Ambassador of Ukraine to Canada, the Ambassador of Germany to Canada, and the Ambassador of the European Union to Canada.

The hearings are set to begin later this month, with the potential to expand the study to include more meetings this summer if MPs feel it's necessary.

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Recalling MPs to vote on a motion to begin this study was the result of multiple members writing to the chair requesting the committee meet.

Canada's decision to allow the return of these turbines has been met with mixed reviews. While it has been backed by the U.S. and the EU, it has been roundly condemned by Ukrainian President Volodymyr Zelenskyy as well as the federal opposition parties, who further expressed their concerns during Friday’s meeting.

"I was quite appalled by the decision," said NDP MP and foreign affairs critic Heather McPherson, slamming the government for waiving sanctions when the situation became "uncomfortable."

"We've all worked very hard in this committee and in the House of Commons to ensure that we are standing with Ukraine, that we are doing everything we can to isolate and punish Putin for the for the incredible harms that he's doing... I would like to understand how the Government of Canada came to this very dangerous decision," McPherson said.

With the full witness roster still up for negotiation, Conservative MPs expressed interest in calling Deputy Prime Minister and Finance Minister Chrystia Freeland, the Ukrainian World Congress, and other foreign policy experts to testify.

"I find it odd that this announcement was made by the minister of natural resources under his department… I think this rises to the level of a deputy prime minister," said Conservative MP and foreign affairs critic Michael Chong.

While Liberal MPs supported kicking off a study, they took opportunities during the meeting to raise that NATO allies have vocalized their support for Canada's decision while recognizing the difficulty of taking it, given the degree of support for Ukraine expressed.

"My understanding is this was a decision that was not taken lightly, and was taken with much conversation, and I think it would be appropriate for members of Parliament to be briefed on how the decision was made, and what its implications and ramifications are," said Liberal MP Rob Oliphant, who is also parliamentary secretary to the foreign affairs minister.

The issue bubbled up last week, after the natural resources minister announced on July 9 that Canada would be granting Siemens Canada a "time-limited and revocable permit" allowing the Canadian company to return turbines — part of Gazprom's Nord Stream 1 pipeline — that had been sent to Montreal for repairs.

After the federal government imposed sanctions on Gazprom — a Russian state-owned energy company — as part of an expanding economic sanctions program in retaliation for the invasion of Ukraine, Siemens Canada was restricted from sending the equipment back. As a result, Canada faced pressure from both Russia and Germany to return the turbines to Germany ahead of currently ongoing scheduled maintenance.

The energy giant claimed it needed the turbines in order to continue supplying Germany, after already considerably decreasing the gas flow through the pipeline. This prompted Germans to express concern that Russia could use not having the turbines as a reason to further cut off its natural gas supply to the country, leaving Germany without a sufficient reserve.

While it was not made clear by the government at the time the deal was announced, the permit allows for the movement of six turbines to be sent back and forth for regular maintenance over the next two years, with the ability for the permit to be revoked at any time.

In addition to this new parliamentary probe, Canada's decision to return the turbines is facing a legal challenge from the Ukrainian World Congress. The organization filed a notice of application for judicial review of the decision with the Federal Court this week, arguing that granting the permit "was not reasonable, transparent, or properly authorized."

On Wednesday, Prime Minister Justin Trudeau defended the move, saying while it was "a very difficult decision," Russia is trying to "weaponize energy as a way of creating division amongst the allies," and that Canada felt it necessary to help Germany in the short-term as it and other European countries work to reduce their reliance on Russian oil and gas.

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