Canada raises money for Ukraine with bond sale

WINNIPEG, Oct 28 (Reuters) – Canada will sell a government-guaranteed 5-year bond to raise funds for Ukraine, the first country to do so, and impose new sanctions on 35 Russian individuals, including Gazprom (GAZP .MM) leaders, Prime Minister Justin Trudeau said Friday.

“Canadians will now be able to go to the big banks to buy their sovereignty bonds that will mature after five years with interest,” Trudeau told an annual meeting of the Ukrainian Canadian Congress in Winnipeg.

“These funds will be used to support the Ukrainian government so that it can continue to support the Ukrainian people,” he said.

Canada has one of the largest Ukrainian diasporas in the world outside of countries bordering Ukraine, and the community has lobbied Ottawa to impose increasingly strict sanctions against Russia since it invaded the country. Ukraine in February.

Ukrainian President Volodymyr Zelenskiy thanked Trudeau on Twitter, saying the link “will allow everyone to contribute to our victory.”

Trudeau did not say when the bonds would go on sale.

Deputy Prime Minister Chrystia Freeland declined to say whether Canada would cap the total value of the bonds it backs.

The proceeds “will help the (Ukrainian) government continue its operations, including providing essential services to Ukrainians, such as pensions, and purchasing fuel before winter,” a statement said.

The equivalent of the revenue collected will be channeled “directly to Ukraine” through an account administered by the International Monetary Fund, according to the statement.

Trudeau also announced new sanctions against 35 senior officials of energy sector entities, including Gazprom “and its subsidiaries”, according to a statement, as well as six other “energy sector entities”.

“We will continue to crack down on anyone who encourages this illegal invasion,” Trudeau said.

In addition, Canada intends to impose new sanctions “on members of Russia’s justice and security sectors, including police and investigators, prosecutors, judges and prison officers, involved in gross and systematic human rights violations against Russian opposition leaders,” the statement said. said.

Reporting by Steve Scherer in Ottawa and Rod Nickel in Winnipeg; Written by Steve Scherer; Editing by Howard Goller and Josie Kao

Our standards: The Thomson Reuters Trust Principles.

Nickel Rod

Thomson Reuters

Covers energy, agriculture and politics in Western Canada, with the energy transition being a key area of ​​interest. Has done short stories in Afghanistan, Pakistan, France and Brazil and covered Hurricane Michael in Florida, Tropical Storm Nate in New Orleans and the 2016 Alberta wildfires and leadership election campaigns politics in two Canadian election campaigns.

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