Ukraine is filling up its underground storage facilities with natural gas, and Canadians are footing the bill.
Earlier last week, Ukrainian Prime Minister Denis Shmyhal confirmed that state-owned Naftogaz received $344 million for the winter season that Canada’s government earmarked earlier in the summer. “Ukraine earlier received this money from the government of Canada,” he said, as cited by Ukrainian media, adding that the “procedure for using state budget funds for procuring gas in 2022-2023 was endorsed at today’s [government] meeting.”
“Grateful for Justin Trudeau, Chrystia Freeland, and all [Canadian] people for unwavering support of [Ukraine] in the fight for freedom and democracy,” Shmyhal initially wrote back in August. The round of funding comes as both Canada and the EU face an unparalleled cost-of-living crisis fuelled by surging energy inflation.
Canadians in particular, have already seen a substantial increase in their electricity and gas bills over the past several months, with some analysts calling for a further rise of 50% to 100% in energy bills on average during the winter. Meanwhile, the federal carbon tax, which currently sits at $50 per tonne, is set to increase to $65 per tonne come April 2023.
Information for this briefing was found via Twitter and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.