The turbines at the heart of the dispute are used to maintain the Nord Stream 1 gas pipeline, which connects Russia to Germany.
Natural Resources Minister Jonathan Wilkinson intends to return the turbines repaired in Montreal to the Russian giant Gazprom despite objections from Ukraine.
Canada will grant a sanctions waiver to return the #x27;Germany of the Russian turbines needed to maintain the Nord Stream 1 gas pipeline, the minister announced on Saturday.
The question of the return of the turbines is at the heart of ;a disagreement between Germany and Ukraine.
Europe is still highly dependent on Russian gas supplies, but transferring any gas-related equipment would violate existing sanctions, a source from Ukraine's Energy Ministry reminded .
The Canadian government justifies this decision by saying that it will help Europe obtain a reliable and affordable energy supply as [these countries] gradually become independent of the Russian fuel.
Last month, Gazprom reduced its exports to 40% of the capacity of the Nord Stream 1 gas pipeline due to delays that slow[ed] the repair of components by Siemens Energy in Canada.
The German company did not react to Saturday's announcement, but the decision to return the turbines would already be made, sources familiar with the matter confirmed to Reuters.
Meanwhile, Ottawa is considering the next wave of sanctions that will target land and pipeline transportation, reads a statement from Global Affairs Canada.
“The oil, gas, chemicals and manufacturing sectors account for more than 50% of Russia's federal budget revenue, which it uses to wage its illegal and unprovoked war in Ukraine.
— A press release from Global Affairs Canada
In addition, these new measures will apply to the manufacturing of metals, transport equipment, computer equipment, electronic and electrical equipment as well as machinery, it says.
Foreign Affairs Minister Mélanie Joly reiterated that Canada unwaveringly supports the sovereignty and territorial integrity of the Ukraine. She was careful to recall that 1,150 individuals and organizations linked to Russia, Ukraine and Belarus have been the target of sanctions since the start of the war on February 24.
With information from Reuters