Canada’s current commitment to the war in Ukraine exceeds $5 Billion
The Canadian government announced that it successfully completed issuing of the $500-million, five-year Canadian sovereign bond for Ukraine. As a result of the war brought about by Russia, the Ukrainian sovereign bond was created and began circulation at the end of November 2022.
Ukrainians will receive $500 million through a Multi-Donor Account administered by the International Monetary Fund (IMF). The money raised is to allow Ukraine to keep up essential operations.
“As the brave people of Ukraine continue their heroic resistance to Putin’s illegal and barbaric invasion, democracies need to continue standing with Ukraine as it defends its sovereignty and democracy. And that means ensuring the Ukrainian government has the resources it needs to keep providing essential services to Ukrainians this winter. I hope the success of our Ukraine Sovereignty Bond—the world’s first bond dedicated to Ukraine—will inspire other countries to follow suit.” Chrystia Freeland, Deputy Prime Minister and Minister of Finance
Canada’s Ministry of Finance stated that the Ukraine Sovereignty Bond is a complement to $2 billion CAD of direct financial assistance the government of Canada has provided Ukraine to date through 2022, which has already been disbursed. Canada has also separately committed more than $2.5 billion to Ukraine for military, humanitarian, and other aid this year.
Canadians participating in a sovereigntist bond to Ukraine would, essentially, buy regular five-year government bonds from the Government of Canada, with about the current 3.3% interest rate, depending on the market conditions at the time they are issued. Canadians could support Ukraine with the Ukraine Sovereignty Bond by purchasing the bond in $100 denominations.