Canada to return repaired turbine for Nord Stream 1 and extend sanctions against Russia

Pipes from the landing facilities of the ‘Nord Stream 1’ gas pipeline are pictured in Lubmin, Germany March 8, 2022. REUTERS/Hannibal Hanschke

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OTTAWA, July 9 (Reuters) – Canada will return a repaired Russian turbine needed to maintain the Nord Stream 1 gas pipeline to Germany, Canada’s natural resources minister said in a statement on Saturday.

The Canadian government, which is issuing a “time-limited and revocable permit” to exempt the return of the turbines from its Russian sanctions, said the move would support “Europe’s ability to access reliable and affordable energy as ‘it continues to move away from Russian oil and gas.”

Canada also announced that it would expand sanctions against Russia’s energy sector to include industrial manufacturing.

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Canada’s new sanctions “will apply to land and pipeline transportation and the manufacturing of metals and transportation, computer, electronic and electrical equipment, and machinery.”

Russia’s Gazprom (GAZP.MM) cut capacity along the Nord Stream 1 gas pipeline between Russia and Europe to just 40% of usual levels last month, citing the delayed return of equipment serviced by Germany’s Siemens Energy (ENR1n.DE), (SIEGn.DE) in Canada. Siemens Energy did not immediately return a request for comment on Saturday.

Canada said that “without a necessary supply of natural gas, the German economy will suffer very significant difficulties and the Germans themselves may not be able to heat their homes as the winter approaches. winter”.

The German government, which did not immediately respond to a request for comment on Saturday, confirmed on Friday that it had received a positive signal from Canada regarding a turbine needed for maintenance of Nord Stream 1. Read more

Alexandra Chyczij, national president of the Ukrainian Canadian Congress, said in a statement on Saturday that “our community is deeply disappointed by the Canadian government’s decision to bow to Russian blackmail.”

The group said Canada was setting “a dangerous precedent that will lead to the weakening of the sanctions regime imposed on Russia.”

The turbine would first be sent to Germany, which would then deliver it to Russia’s Gazprom, a government source told Reuters earlier this week.

The decision to return the turbine had already been made, a source familiar with the matter told Reuters on Thursday.

The Kremlin said on Friday it would increase gas supplies to Europe if the turbine was returned.

Ukraine has opposed Canada’s handing over of the turbine to Gazprom and Kyiv believes such a move would flout sanctions against Russia, a Ukrainian energy ministry source said Thursday.

Canadian Foreign Minister Mélanie Joly said in a statement on Saturday that “Canada is unwavering in its support for the sovereignty and territorial integrity of Ukraine…Canada will not let up on its pressure on the Russian regime”.

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Reporting by Steve Scherer in Ottawa and David Shepardson in Washington; Editing by Sandra Maler, Lisa Shumaker and Chris Reese

Our standards: The Thomson Reuters Trust Principles.

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