Thank you very much, Mr. Chairman and honourable members of the committee.
As you said, Mr. Chairman, we'd agreed with colleagues that I would begin and then pass the floor to Ms. Guttman and Mr. Metcalfe, and then other colleagues can take questions in areas of their expertise and departmental lead.
The Russian aggression, which started with the illegal annexation of Crimea and then drew eastern Ukraine into a bloody conflict, has now entered its second year. The economic and human toll is mounting.
Over 6,000 people have been killed, according to United Nations estimates, 5.2 million live in conflict-affected areas, and close to 1 million people are reported to be internally displaced.
The productive capital and infrastructure in eastern Ukraine has been largely destroyed and will take years, billions of dollars, and immense human effort to rebuild.
Russia's aggression has taken a form of hybrid warfare, which relies heavily on relentless propaganda and a constant stream of disinformation. It has even manifested itself through the instrumentalization of religion as a means to divide Ukrainians and undermine their unity, particularly those in east Ukraine. It remains unclear whether, let alone when, Russia will relent and allow Ukraine to exercise its sovereign right to pursue its independent path of political and economic development.
The diplomatic efforts toward a political solution led by Germany and France, which resulted in the second Minsk agreement, signed on February 12, have yielded some positive results. There has been an overall reduction in violence, and a partial exchange of prisoners has taken place. However, withdrawal of heavy weaponry by separatists is incomplete and uncertain. Localized fighting is ongoing and occasionally flares up. Mariupol, the largest government-controlled city in the conflict zone, remains under threat, and many prisoners of war remain captive. It is imperative that Canada and the international community continue to maintain pressure on Russia to respect its commitments and ensure that the Minsk agreement is fully implemented.
In the face of the ongoing aggression from its neighbour, Ukraine continues to need significant diplomatic, financial, technical, military, and humanitarian support from its friends and partners around the world. As you are aware, Canada has been one of Ukraine's most active and strongest supporters on the international stage. Canada has consistently condemned in the strongest possible terms Russia's actions in Ukraine. The government has used every opportunity in multilateral and bilateral fora to condemn the Kremlin's illegal, unacceptable, and provocative actions. Canada has made it clear that there would be consequences if Russia did not reverse its course.
We have worked closely with our U.S. and EU counterparts to find the most effective means to counter Russia's aggression in Ukraine. Through close coordination among Canada, the U.S., and the European Union, we have succeeded in imposing significant costs on Russia for its actions. These measures are having significant impact on Russia diplomatically and economically.
Canada has been a leading voice with our partners to isolate Russia diplomatically, notably, but not only, by suspending the G-8, from which Russia has disqualified itself. As a result, Russia's influence and prestige within the global community have diminished significantly.
Canada and our partners have implemented extensive economic sanctions, frozen assets, and imposed travel bans on hundreds of individuals. The restrictive measures target key sectors and individuals within the Russian economy. They were designed to have an impact on the core of the system that supports the Putin government.
Canadian sanctions, which are among the toughest in the world, have been developed in close coordination with U.S. and EU partners to ensure that the international community is united in its response to the aggression. We have imposed sanctions against more than 270 Russian and Ukrainian individuals and entities and a number of key sectors of the Russian economy. Collaboration with international partners ensures that there is a real cost to Russia for its actions.
Russia's economy is now experiencing a steep decline. According to the IMF, GDP is expected to contract by close to 4% in 2015. The currency, the Russian ruble, has lost approximately half its value since the crisis began. Capital flight totalled more than $150 billion in 2014 and is expected to remain high this year, and the nation's reserve funds have declined by close to $100 billion since the conflict in Ukraine began.
While the recent drop in oil prices and Russia's weak economic fundamentals following years of mismanagement are of course important factors, the sanctions that Canada and our partners have put in place and the uncertainty created by the threat of their expansion have played a significant role in Russian economic decline. The impact of these measures on the Russian economy will increase over time.
As for Canada's relationship with Ukraine, it is closer and stronger than ever before. Since the beginning of the crisis, Canada and Ukraine have maintained constant, high-level political dialogue. Prime Minister Harper attended President Poroshenko’s inauguration last June and was the first foreign leader to meet with the new president.
President Poroshenko in turn visited Ottawa last September and was, as you know, warmly received as he delivered a powerful speech to Parliament. Contact at the ministerial level, between both foreign ministers and other ministers, has been regular and fruitful, with multiple ministerial visits and conversations.
Russia has also used energy as a means of political pressure. In response, Canada has worked on a number of short-and medium-term initiatives to support Ukraine in meeting its energy needs and bolstering its energy security. Mr. Leyburne, from Natural Resources Canada, will be able to respond to any questions you may have on this issue.
In addition to our political and diplomatic support, Canada has provided extensive support to Ukraine in the form of financial assistance, development assistance aimed at economic and democratic progress, election monitoring, security monitoring through the OSCE, and non-lethal military assistance.
Since January 2014, Canada has announced more than $578 million in funding. Thanks in part to Canada’s support, Ukraine has made important progress with the implementation of complex and essential reforms.
In response to a request from the Ukrainian Government, Canada has provided non-lethal military equipment to Ukraine's armed forces, including winter clothing, a mobile field hospital, explosive ordnance disposal equipment, and other material.
Prime Minister Harper also recently announced that Canada will be deploying approximately 200 Canadian armed forces personnel to Ukraine until March 31, 2017, to develop and deliver military training and capability building programs for Ukrainian forces personnel. Brigadier-General Balfe from the Department of National Defence will be able to answer any questions you may have on this subject.
The range of assistance Canada has provided is very broad and has involved many departments and agencies of the Government of Canada, including all those represented here today, as well as many sectors of Canadian society.
Officials in attendance from other parts of the Department of Foreign Affairs, Trade and Development, from the Departments of Finance and National Defence, and from Natural Resources Canada will be able to speak in detail about the support their departments are providing.
Mr. Chairman, thank you again for inviting us to this hearing. Once my colleagues finish their presentations, we will of course be happy to take any questions from you and the committee.
