Freeland to serve as Canada’s special representative for Ukraine, exit cabinet

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Chrystia Freeland, once the most influential cabinet minister in Ottawa, is leaving her post as transport and internal trade minister to serve as Canada’s special representative for Ukraine.

Two sources said the appointment had been in the works for the past month and was firmed up on Monday when Ms. Freeland met separately with Prime Minister Mark Carney and his chief of staff, Marc-André Blanchard.

The Globe and Mail is not identifying the sources, who were not authorized to speak publicly on the matter.

The Prime Minister said in a statement Tuesday that Ms. Freeland served the country with great distinction, and that he’d asked her to take on a newly created role as his Special Representative for the Reconstruction of Ukraine.

“As a former G7 minister of Finance, Foreign Affairs and International Trade with deep relationships and understanding of Ukraine and its economy, Chrystia is truly uniquely positioned for this timely and essential work towards a better future for Ukrainians and peace in Europe,” he said.

He added that she would continue to serve as a member of Parliament.

In her own statement, Ms. Freeland said she is stepping down after 12 years of active political involvement to pursue new opportunities.

The move was not unexpected. Ms. Freeland once held top cabinet jobs at Finance, Foreign Affairs, International Trade and served as Justin Trudeau’s deputy prime minister. The Transport portfolio is a middle-level cabinet post.

“I have decided to step down from cabinet today and turn the page on this chapter in my life. I do not intend to run in the next election,” she wrote on X. “I am not leaving to spend more time with my family or because the burden of elected office is too heavy to bear.”

Government House Leader Steven MacKinnon will take over as Transport Minister and Dominic LeBlanc, the Minister Responsible for Canada-U.S. trade, will assume duties for internal trade. The two were sworn into their new responsibilities at Rideau Hall late Tuesday.

Ms. Freeland will remain an MP for at least six months, a source said. The source said the Prime Minister did not want to call an early by-election until the busy fall session is over, including the delivery of a federal budget on Nov. 4.

The Globe is not identifying the source who was not authorized to speak publicly on internal discussions.

Mr. Carney is looking to remake the cabinet to bring in more outside talent, similar to new Natural Resources Minister Tim Hodgson. He is a former investment banker with Goldman Sachs personally recruited by Mr. Carney to run for the Liberals.

The Prime Minister and Ms. Freeland walked out of a cabinet meeting Tuesday but declined to talk to reporters. As she got into her government car, Ms. Freeland would only say it was a “great day.”

The Prime Minister’s Office said in a background document that Ms. Freeland will report directly to Mr. Carney. She will work with Ukrainian and Canadian political and business leaders on a plan to rebuild the Ukrainian economy.

Human rights advocate Bill Browder, an outspoken critic of Russian President Vladimir Putin and a close friend of Ms. Freeland, said the appointment is good news for Ukraine.

“As finance minister, her main contribution was convincing all the [G7] finance ministers to go along with an asset freeze immediately after the war started,” he said.

He noted, however, that he can’t see much of a role in terms of reconstruction until the war is ended.

“But this still a big win for us because her heart is with Ukraine.”

As finance minister from 2020 to 2024, Ms. Freeland was instrumental in providing badly needed financial assistance to Ukraine. Since the beginning of 2022, Canada has committed $19.7-billion in multifaceted support to Ukraine. This includes more than $12.4-billion in direct financial assistance, the highest in the G7 on a per capita basis.

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The Ukrainian Canadian Congress lauded the appointment, saying it will work with Ms. Freeland to increase weapons production and seek to persuade Western nations to seize $300-billion in frozen Russian assets.

UCC chief executive Ihor Michalchyshyn told The Globe in an interview he sees the role as important in co-ordinating cross-governmental efforts in support of Ukraine and hopes for more detail on how exactly it will work.

“We think this will be a really useful way to increase Canadian engagement,” he said.

On the way out of cabinet, Defence Minister David McGuinty called Ms. Freeland an “extraordinary person” who could play a strong leadership role in helping Ukraine.

“We continue to show leadership in the region and I think that we have to remember that the threat landscape in the Ukrainian theatre of war is serious, that the Russians are not pulling back,” he said.

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Ms. Freeland, who is of Ukrainian descent and speaks the language fluently, visited Kyiv on the weekend with former prime minister Jean Chrétien.

Aside from her role as special envoy for Ukraine, she also plans to do some writing, teaching and be involved in issues including international security, multilateralism and the defence of democracy, according to a source close to Ms. Freeland.

The Globe is not naming the source, who was not authorized to discuss the matter.

Ms. Freeland lost the Liberal leadership to Mr. Carney in March by a wide margin but he nonetheless kept her in his cabinet. He is a godfather to one of her children.

In her many senior cabinet roles, Ms. Freeland developed strong bonds with provincial premiers, particularly Ontario Premier Doug Ford.

“She’s always a friend. I talk to her almost daily,” Mr. Ford told reporters at an event in Grassie, Ont. “She’s good person, and she’ll do a great job over in Ukraine, and I support her all the way.”

With reports from Steven Chase, Emily Haws and Laura Stone