Ukraine’s third front is economic — and Canadian business is playing an active role
As Canada works towards the complementary goals of diversifying our exports and strengthening our defence industrial base, we must continue to seize opportunities to build a closer economic partnership with our allies in Ukraine. No other country has demonstrated a greater resilience or capacity for innovation in the face of mortal dangers than the people, businesses and government of Ukraine. They are a model for Canadians.
Whenever I talk about Ukraine I begin by describing my first discussion with Ukraine’s former Ambassador to Canada, Yuliya Kovaliv. When her embassy reached out to arrange a meeting, just weeks after Russia’s February 2022 invasion of Ukraine, I didn’t know what to expect. In fact, I thought she wanted to ask me to help convince our government to do more militarily to help defend her country. I didn’t know what I would be able to offer.
As it turned out, the newly appointed ambassador-designate wanted to discuss another topic entirely, one that fell squarely in the mandate of the Business Council of Canada. She wanted to discuss trade and investment. In the course of what was one of the most remarkable meetings I’ve had in my professional life, Ambassador Kovaliv walked me through in detail how Ukrainian businesses were continuing to operate despite the war.
Explaining that there were multiple fronts to the conflict, including both a military front and a diplomatic front, her mandate was to enlist the help of Canadian business leaders for the third, crucial one: the economic front. Canada, she argued, was a key economic partner for Ukraine, and Canadian businesses could play a crucial role across a range of sectors from energy and agri-food to transport, financial services and manufacturing.
Ambassador Kovaliv introduced me to my counterpart, Zenon Potichny, who leads the Canada-Ukraine Chamber of Commerce (CUCC). The BCC was proud to partner with the CUCC on what became the first of now annual Rebuild Ukraine conferences organized by Zenon and CUCC Executive Director Olha Mandyuk. Each year Canadian and Ukrainian business leaders gather to make connections, share experiences, and identify new ways to work together.
The 5th Annual Rebuild Ukraine Business Conference will take place this November and will include a focus on our respective defence sectors. It will be the first such conference since Canada has become a participant in the €150 billion Security Action for Europe (SAFE) financial instrument. Under the terms of Canada’s participation, the Government of Canada agreed to provide a commensurate financial contribution to support Ukraine’s defence industry.
Increased cooperation between our defence sectors builds on the many efforts undertaken by former Prime Minister Justin Trudeau and former Deputy Prime Minister Chrystia Freeland – who left the Carney government to serve as a special economic development advisor to Ukrainian President Volodymyr Zelenskyy. Indeed, it builds on the work by former Prime Minister Stephen Harper in the aftermath of Russia’s annexation of Crimea.
In April 2023, the Business Council of Canada was proud to participate in a joint business roundtable hosted by Prime Minister Trudeau for Ukraine’s then-Prime Minister Denys Shmyhal. The event showcased the importance business-to-business ties play in the war effort and Ukraine’s reconstruction after the victory. The two leaders also signed a joint declaration on the successful modernization of the Canada-Ukraine free trade agreement.
It is with great pride that I can say Business Council of Canada members have played an outsized role in supporting Ukraine’s economic resilience and recovery. Much as they partnered with the Canadian government to deliver innovative solutions here at home during the crisis caused by COVID-19, they have and will continue to work with the Canadian and Ukrainian governments through the crisis caused by Russia’s horrific war.
It is often said that Canada has what the world wants. It is especially true that Canada and Ukraine have what each other want. Nowhere is this more evident than in the defence and dual-use sectors. As armed conflicts around the world deplete crucial stockpiles of goods and technology needed by our militaries, a strengthened Canadian defence industrial base can become a trusted and reliable supplier to Ukraine as well as an even bigger customer for the goods and services Ukraine exports.
With NATO countries, including Canada, now substantially increasing defence spending, the opportunity to shore up the third front in the Ukraine war is even greater today than it was when I first met former Ambassador Kovaliv. Canadian business leaders across our country and across all sectors have been inspired by the courage of their Ukrainian counterparts. They are taking bold risks, investing in new products and in new markets.
Slava Ukraini and Canada Strong go hand in hand.
