The first Canadian Leopard 2 main battle tank to be donated to Ukraine arrives in Poland. Canada is lending another $2.4-billion to Ukraine to boost its support for the country after Russia's invasion.CANADIAN FORCES/Reuters
Canada is lending another $2.4-billion to Ukraine to help the beleaguered country cope with the economic fallout from Russia’s military assault, bringing total support for Kyiv to more than $8-billion since the war began.
The new aid was included in the 2023 budget announced on Tuesday. The government said at nearly US$100 a person, Canada’s financial support for Ukraine on a per capita basis is the highest in the world, ahead of France, Germany and the United States.
“The brave people of Ukraine have reminded us that we must never take our freedom and our democracy for granted,” Finance Minister Chrystia Freeland said when tabling the budget.
The budget provides Ukraine with an additional loan of $2.4-billion, which will be provided to Kyiv through an existing International Monetary Fund-administered account.
This brings Canadian loans to Ukraine through the IMF account to $5-billion and Ottawa says it will help Ukraine cover the cost of government pensions, heating fuel, restoring damaged energy infrastructure and delivering essential services to citizens.
The budget also provides nearly $172-million in additional support payments for Ukrainian citizens who are making Canada their home, at least temporarily. Since January of last year, 200,000 Ukrainians have arrived in this country out of 800,000 applicants, the government said.
The funds will help with income and settlement for those arriving until March 31, 2024.
Ottawa also announced nearly $85-million in additional humanitarian assistance for Ukraine in the 2023-24 fiscal year for mental health support, removing land mines, agriculture and other purposes. Funds for this will come from within the existing Department of Global Affairs budget rather than new money.
Canada has given Ukraine more than $1-billion in military aid and defence equipment, including a high-tech surface-to-air missile system and eight Leopard tanks, four howitzer guns, anti-tank weapons and 39 armoured combat support vehicles.
As Ukraine’s fight to defend itself extends into its second year, the federal government vowed in the budget document to support Kyiv “for as long as it takes.”
The government announced in the budget it will also “indefinitely extend” the 35-per-cent tariff it’s applying to all imports from Russia and its close ally Belarus. This tariff applies because Canada has revoked most-favoured-nation status for these two countries, placing them in the same tariff-treatment category as North Korea.