Canadian sanctions against Russia | Quebec embroiled in spite of itself in the European energy crisis

Quebec is embroiled in spite of itself in the European energy crisis unleashed by Russia’s military offensive against Ukraine. A critical piece of equipment for Russian natural gas exports to Germany is stuck in the Montreal area due to Canadian sanctions against Vladimir Putin’s regime. Overview of the case in a few questions.

Julien Arsenault
The Press

What is the situation ?

Since last week, the Nord Stream 1 gas pipeline, which passes under the Baltic Sea to reach Germany, has seen its capacity reduced to 40% of usual levels. The reason ? Gazprom, a Russian state company, says it is unable to recover an imposing turbine to allow compressors to increase the volume of natural gas in the 1,200 kilometer pipeline. This turbine is located in the Quebec facilities of Siemens Energy in Dorval, because its engine needs a facelift.

“For technical reasons, these turbines can only be overhauled at Siemens facilities in Montreal,” confirms the German giant, in an email sent to The Press. “These are aeroderivative gas turbines, made in Canada. »

Without this equipment, the reduction in volume in the 1,200 kilometer pipeline is inevitable, says Gazprom. Berlin, which imports 35% of its natural gas from Russia, sees it more as a ploy to drive up prices.

Why is it stuck here?

The Trudeau government has not offered a specific explanation. Gazprom is on the Canadian list of companies targeted by Canadian sanctions, which have multiplied since the start of the armed conflict in Ukraine.

Moreover, the type of turbine in question is among the goods and technologies that cannot be exported to Russian territory. Although it is the Ministry of Foreign Affairs which is responsible for the application of the Special Economic Measures Actall questions were directed to the office of Natural Resources Minister Jonathan Wilkinson.

His press officer, Keean Nembhard, says discussions with Germany are underway to try to “find a solution”.

“We will not stop imposing severe sanctions on the regime [de Vladimir] Putin as long as his unjustifiable invasion continues and we will continue to support our European friends and allies in working to stabilize energy markets,” he wrote in an email.

Is Canada right to act in this way?

Regulatory law expert Mark Warner of Toronto-based firm Maaw Law wonders if Ottawa is going a bit too far. In this case, the lawyer points out, the sanctions are intended to harm Russia, but they will also have repercussions on the Europeans – allies of Canada.

“Why would we impose sanctions on a turbine used to transport natural gas from Russia to Germany when it does not affect us? asks Mr. Warner in a telephone interview.

Moreover, adds the lawyer, there is no European embargo on Russian natural gas. In his opinion, Ottawa should instead target people and companies doing business in the country. However, the Trudeau government is not very vocal on the subject, revealed The Press last March.

Is a denouement at hand?

We can find a solution, believes Richard Ouellet, specialist in international law and professor at Laval University. the Special Economic Measures (Russia) Regulations can be changed by a meeting of the Council of Ministers, he said. No need to remind Parliament.

“If there are major issues for a Canadian partner, I imagine that we are able to look into the question,” believes Mr. Ouellet. There is a bit of political leeway, I believe. But under the current rules, Siemens cannot take out the turbine. »

Mr. Ouellet is also surprised that the German multinational has not found another way to achieve its goals. For example, Siemens Canada could have sent the turbine to Siemens in Germany, illustrates the expert. Delivery to the Russian giant could have taken place later.

“The turbine can be pulled out in a thousand ways,” he explains. There is something unsaid somewhere. »