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Budget 2022: $500M in military aid to Ukraine, projects economic upheaval from war

OTTAWA 鈥 Finance Minister Chrystia Freeland referenced horrific allegations of Russian war crimes on Thursday as the federal Liberal government promised another $500 million in military aid as well as other financial assistance to Ukraine.
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Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks a news conference in the media lockup, ahead of the tabling of the federal budget, in Ottawa, on Thursday, April 7, 2022. THE CANADIAN PRESS/Justin Tang

OTTAWA 鈥 Finance Minister Chrystia Freeland referenced horrific allegations of Russian war crimes on Thursday as the federal Liberal government promised another $500 million in military aid as well as other financial assistance to Ukraine.

The promised new aid is contained in the Liberal government鈥檚 latest federal budget plan, which paints a gloomy picture for sa国际传媒鈥檚 economy should the war in Ukraine drag on, including even higher fuel prices and supply-chain problems.

Speaking in the House of Commons as she presented the budget plan, Freeland noted sa国际传媒 and its allies have imposed severe sanctions against Moscow since the first Russian troops crossed into Ukraine on Feb. 24.

鈥淏ut the mutilated people of Bucha, shot with their hands tied behind their backs, have shown us that is not enough,鈥 Freeland added in reference to reports and images of Ukrainian civilians having been tortured and killed by Russian troops.

Freeland went on to accuse Russian President Vladimir Putin and 鈥渉is henchmen鈥 of war crimes, and warned that the only way for sa国际传媒 and other democracies to be safe is if 鈥渢he Russian tyrant and his armies are entirely vanquished.鈥

鈥淎nd that is what we鈥檙e counting on the brave people of Ukraine to do,鈥 she said.

鈥淏ecause they are fighting our fight 鈥 a fight for democracy 鈥 it is in our urgent national interest to ensure that they have the missiles and the money they need to win. And that is what this budget helps to provide.鈥

To that end, the budget commits $500 million in both lethal and non-lethal military aid this year, which is on top of the $90 million in anti-tank guns, sniper rifles, night-vision goggles, armoured vests and other military equipment already provided to Ukraine.

The promised new assistance follows assertions from Prime Minister Justin Trudeau and Defence Minister Anita Anand in recent weeks that sa国际传媒 would send more weapons and other help to Ukraine.

However, it isn鈥檛 clear how the aid will be delivered. Trudeau and Anand have said they are looking at buying weapons on the open market, but a group of Ukrainian legislators asked Ottawa last week to provide money directly to Kyiv for the purpose.

sa国际传媒 is also offering an additional $1 billion in loans to Kyiv through a special account managed by the International Monetary Fund to help the Ukrainian government weather the economic damage of the conflict, which has left whole cities in ruin.

Yet the budget plan suggests the Ukrainian economy isn鈥檛 the only one that has been affected by Russia鈥檚 invasion, and that the economic upheaval in sa国际传媒 could get even worse if the war drags on.

In particular, the budget predicts 鈥渟urging commodity prices, prolong supply-chain disruptions and more rapid monetary policy tightening鈥 with a drawn-out conflict. 鈥淭he result is weaker economic activity and temporarily stronger inflation,鈥 it adds.

This report by The Canadian Press was first published April 7, 2022.

Lee Berthiaume, The Canadian Press