Thank you very much for this opportunity to contribute to the committee's deliberations.
My comments are aimed at shedding light on what I see as the central question in the debate about the gas turbines today: Should Canada revoke the permit allowing the maintenance of the now-infamous gas turbines? The answer to this question is a resounding yes.
Doing otherwise—continuing with the sanctions exemption—does not advance Canada’s interests, does not help our European allies with their energy problems, and continues to provide the Russian dictator Vladimir Putin with opportunities for blackmail and leverage against the west.
Let me briefly elaborate in the five minutes that I have.
It is clear to all that the technical issues have nothing to do with Russia’s decision to first reduce and then completely shut down gas flows to Europe via Nord Stream 1. Russia’s actions over the years, and particularly in the last few months, made this very clear. There is no need to again go over the familiar terrain that has been covered in the deliberations of this committee. It's a political decision aimed at blackmailing and forcing Europe to ease or break the sanctions imposed on Russia as a result of its brutal and unprovoked invasion of Ukraine.
Kremlin spokesperson Peskov said as much with great clarity on Monday, and Putin repeated the same thing today in his remarks. This fact is clearly recognized by the German and European public, as polling consistently indicates. It would be giving too little credit to the European public’s political sophistication to argue that they will buy into Russian excuses and blame Canada for the difficulties.
Therefore, it is clear that Canada’s decision to continue to provide an exemption for the gas turbines will have no role in determining whether Russia will resume gas flows to Europe or not, nor will revoking the permit lead to a backlash against Canada from the Europeans.
What it does, however, is provide an ongoing point of leverage for the Kremlin to create friction and discord between allies and enable the Kremlin to develop a narrative of western weakness and disunity by pointing out the carve-outs within the sanctions regime.
In other words, the Kremlin turns to other countries and says, “Look: Canada, Germany and other western powers immediately violate their own sanctions regime and carve out exemptions when their domestic interests are threatened. Why would you go along with this and pay the price when they are not interested in doing the same?” Putin is basically repeating the same line today in his talk.
Continuing with the exemption also does not help our European allies with their energy needs. What would help is to get Canadian LNG to them, as they have been asking for publicly and very clearly. Not only has Chancellor Scholz voiced his desire for more Canadian LNG, but other allies, such as Poland and Latvia, have been calling for more Canadian gas to Europe for a while. Clearing the obstacles in front of this real and tangible support for Canada’s allies is urgently needed. That is what a good ally would do.
Lastly, it is important to keep in mind the broader geopolitical context in which this issue needs to be considered. The strategic goal for Canada must be Ukrainian victory in this war. Supporting Ukraine is not charity but enlightened self-interest. What is at stake for Canada is not only the security and prosperity of our European allies but also the future of the rules-based international order that has benefited Canada and Canadians immensely. The country—Russia—that launched this brutal attack on that international order is not far to the east of us; it is an immediate neighbour to the north in the Arctic. Policies that provide leverage and opportunity for Russia are not in the interests of Canada.
To recapitulate, whatever the initial merits of the decision to provide an exemption, there are no strategic, political or economic reasons now to continue to provide Russia with potential leverage for the next two years. It neither advances Canada's interests nor alleviates our allies' suffering. The permit should be revoked and Canada should look for ways to get its LNG to European markets as fast as it can.
Thank you very much for this opportunity to talk to you today.