Live Ukraine updates: Canada to revoke ‘most favoured nation’ status to Russia and Belarus

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Russia’s invasion of Ukraine has sparked unprecedented economic and financial retaliation from western nations which are piling on sanctions in what France has called “all-out economic and financial war.”

But the conflict will have consequences for the whole world as it cuts off crucial energy and crop supplies, disrupts businesses and upsets financial markets, already under stress as central banks tighten policy.

There is a lot going on out there so check here for the latest news on how the conflict is affecting markets, businesses and the economy.

10:32 a.m.

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Now read what Eric Nuttall thinks Canadian policymakers can learn from Europe’s energy woes

9:16 a.m.

BREAKING Deputy Prime Minister Chrystia Freeland just announced that Canada will revoke “most favoured nation” status to Russia and Belarus, meaning it will no longer receive WTO benefits such as low tariffs.
The only other country without this status is North Korea, Freeland said. Russia and Belarus will now be subject to 35 per cent tariffs on their exports to Canada.

“We will not let Russians and Russian institutions that are central to President Putin’s fallen kleptocracy enjoy this prosperity.”

Freeland said the impact of Russian sanctions to Canadians will be minimal, noting that after the Crimea annexation, Canada had begun discouraging trade and business with Russia.

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“It was a decisive move,” Freeland said. “With regards to G7 countries, Canada has the loosest ties with Russia.”

That paved the way to enforce the strong measures implemented this year, she said.

The minister of immigration, Sean Fraser, said Canada will welcome Ukrainians fleeing the Russian invasion.

“The reason we are committed to offering refuge to Ukrainians who seek it is that by opposing Putin’s tyranny and oppression, they are advancing the democratic values in Ukraine that define us as Canadians.”

Canada will enforce a measure called the Canada-Ukraine Authorization for Emergency Travel and there will be no limit on the number of applications so that Ukrainians fleeing can enter Canada and find work with an open work permit.

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An expedited pass will be created so that Ukrainians who have family in Canada can arrive here sooner. The pass will apply to a broader scope of family members rather than the usual scope of immediate family members.

“Those Ukrainians who are ready to give their lives to defend the values we hold dear, we stand with you, not only in our work, but also interactions,” Fraser said.

“We will provide equipment to help defend your homeland. We will provide financial support to help stabilize your economy. We will impose economic sanctions on your oppressor. Today, we will offer a safe haven to your families while you fight on the frontlines of a war to defend your freedom from tyranny to the benefit of the entire world.”

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8:52 a.m.

Canada has imposed new sanctions against Russia’s energy sector in response to “Russia’s unprovoked and unjustifiable invasion of Ukraine.”

Mélanie Joly, Minister of Foreign Affairs, said in a release that new restrictions are being imposed on 10 key individuals in Russian energy giants Rosneft and Gazprom in an effort to pressure the country to cease hostilities. The government did not name the individuals.

Ottawa said it would continue to consult with its allies on further sanctions if Russia persists with its aggression against Ukraine.

“Canada’s support for Ukraine and its people is unwavering. We will continue to meet every act of aggression by Russia’s leadership with measures designed to weaken its ability to wage war,” Joly said in the release. “As the horrific events in Ukraine continue to unfold before our eyes, it is clear more must be done. Those who aid and abet Russian aggression will be held accountable. Canada stands with Ukraine.”

Additional reporting by Reuters and Bloomberg