Thank you for the opportunity to speak to this committee.
This is a reminder for everyone that when referring to Ukraine, we don't need to use the article “the”, which would imply a region. Ukraine is a sovereign state, as we're learning in these times of conflict and Russian escalation of aggression.
I'm here on behalf of the Ukrainian Canadian Congress, which is the voice of Canada's Ukrainian community. We bring together under one umbrella the national, provincial and local Ukrainian community organizations, and represent the interests of the community in Canada which, at the last census, was at 1.4 million Canadians. Our organization has worked since 1940 and we work in the spheres of social, economic and political affairs.
Before I speak to our recommendations on this important topic of CUFTA modernization, I want to touch upon the fact that Ukraine is a country at war. It is a country that has been a target of foreign aggression for the past eight years, and it has defended itself against Russia's attempts to once again subjugate the Ukrainian people through the use of force.
Today, Russia is threatening a further invasion of Ukraine. It is a serious escalation, which is having deleterious effects on Ukraine's economy. The instability caused by Russia's escalation in recent weeks is causing private investors to flee and making it far more expensive for Ukraine to raise capital on lending markets. We welcome the announcement by Canada in recent days of loan commitments to Ukraine totalling $620 million and the intention of the G7 to support economic stabilization. However, its also important to remember that we need to raise the costs on Russia of further escalation of aggression.
UCC calls on this committee and its members to support the implementation of further sanctions against Russia as a proactive deterrent, rather than following a potential Russian invasion. Sectoral sanctions on the energy and financial sectors of Russia need to be strengthened immediately. These should be sanctions against Russian officials, particularly wealthy businessmen, or oligarchs, close to the Russian regime, and they should be sent now as a deterrent.
Turning to the issue at hand, to the longer-term modernization of the Canada-Ukraine Free Trade Agreement, the Government of Ukraine has made the attraction of foreign direct investment in Ukraine a policy priority. The increase of trade and economic activity between Canada and Ukraine will serve to further facilitate Ukraine's transition to a market economy [Technical difficulty—Editor] supremacy of the rule of law and democratic governance.
Ukraine is a key international partner for Canada and an emerging market for Canadian investments in the heart of Europe. Increased prosperity resulting from Canadian investments in Ukraine will create a virtuous circle of increased investment of the Ukrainian business community in Canada, creating jobs and prosperity here.
We have five recommendations for the committee on the modernization of CUFTA. First, focus on increasing trade collaboration and investment between Canada and Ukraine in the IT, green energy, defence and aerospace sectors, which have the strongest potential for growth. Second, establish reform benchmarks in law enforcement, judicial and taxation systems and clear criteria for measuring reform progress. Third, focus on demonopolization of Ukraine's economy, including market competition reform benchmarks with Ukraine's anti-monopoly committee. Fourth, work to revise Export Development Canada's risk rating criteria of Ukraine and ensure that EDC makes all of its products and services available to Canadian businesses investing in Ukraine. Finally, focus on enhancing the people-to-people ties by developing a comprehensive road map for the liberalization of travel for Ukrainian citizens to Canada, including the establishment of visa-free travel for short-term visits.
The relationship between Canada and Ukraine is a strong one not only because of the people-to-people ties; it's strong because our countries share the same values and commitment to democracy, equality and liberty. We believe that the modernization of the Canadian-Ukraine Free Trade Agreement will strengthen these ties to the benefit of both countries and both peoples.
Thank you.