The war between Russia and Ukraine has had a significant impact on the transportation industry, including airlines. After Russia’s invasion of Ukraine, the EU imposed a blanket ban on flights and closed its airspace to all Russian flights across its 27 member countries. Later, Canada joined the EU in closing its airspace to Russian carriers. In a reciprocal action, Russia closed its airspace to all European aircraft.
While Canada’s trade relationship with Ukraine and Russia is limited, a careful analysis of the situation suggests there will be both negative and positive impacts for Canadian businesses and the economy. The trade relationship between Canada and Russia is too small for restrictions to have a significant direct impact on the Canadian economy. Exports total just over $600 million a year to the Russian federation, or only 0.1% of Canada’s total merchandise exports of $600 billion.
What is the Canadian government doing to help Ukraine?
The Canadian government has been providing support to Ukraine since the beginning of the conflict. Canada has provided more than $785 million in assistance to Ukraine since 2014, including humanitarian, development, and security assistance.
What is the Canadian government doing to help the transportation industry?
The Canadian government has not announced any specific measures to help the transportation industry. However, the Canadian government has announced that it will provide up to $120 million in humanitarian assistance to Ukraine and neighbouring countries affected by the conflict.