At Export Development Canada (EDC), we’re here to support Canadian businesses and exporters affected by the conflict between Russia and Ukraine. To better understand the crisis and its impacts on global trade, here are some of the most frequently asked questions.
1. What is the status of EDC’s engagement with Ukraine?
Pending further developments, EDC’s solutions remain available in Ukraine on a restricted basis. We continue to respect all of our obligations as a commercial lender, including our commitments to customers.
Given the fast-moving situation in Ukraine, we encourage Canadian exporters to contact EDC when considering shipping goods into the market. EDC, along with our government partners, continues to closely monitor developments in the market and region. We remain committed to Ukraine and will continue to engage with Canadian exporters and qualified investors, who are interested in the market and will seek opportunities to support whenever possible.
2. What is the status of EDC’s engagement with Russia?
Since 2014, EDC’s products haven’t been available in Russia and this remains the current status for any transactions related to Russian contracts or Russian borrowers under any product.
3. Is it safe for Canadian business representatives to travel to Ukraine?
For travel information or restrictions to the Ukraine, refer to the Government of Canada’s travel advisories.
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EDC is keeping a close eye on how COVID-19 and the conflict in Ukraine is impacting Canada and the global economy. Stay on top of changing country risks, so you can make informed decisions.
4. Which industry sectors are being the most impacted by the conflict between Russia and Ukraine?
Ukraine’s economy is currently facing a challenging security situation resulting in adverse market conditions that will disrupt trade and investment and the country’s growth. Given this, few industries are likely to escape the impacts of the crisis. But given Ukraine’s role as a major exporter of agricultural products, metals, machinery and auto parts, EDC expects these sectors to be heavily impacted.
As the crisis continues, energy costs are soaring, as well as concerns about the oil and gas industry. Russia produces 10% of the world’s oil supplies. On March 1, Brent crude jumped above the US$100 mark. In addition, Russia supplies 40% of European natural gas, much of which goes through Ukraine, which is also a trans-shipment point for oil, with approximately 250,000 b/d of crude destined for Europe.
Russia is also the world’s largest exporter of grains and fertilizers, a key nickel producer, the third-largest exporter of coal and steel, and fifth-largest wood exporter. Depending on the scope of the conflict, there’s a risk of disruptions at neighbouring ports on the Black Sea, including Romania, Bulgaria, Georgia and Turkey.
5. What impacts could the Russia-Ukraine conflict have on my supply chains?
The conflict threatens to exacerbate ongoing supply chain disruptions, already a key driver of global inflationary trends. Few industries will escape the pricing pressures caused by shortages of such critical materials—from agriculture and autos to aerospace, cleantech, construction and communication technologies.
The crisis will also further increase inflation, pressuring energy and food costs, and erode the purchasing power of consumers and businesses around the world.
6. As a Canadian exporter, what do I need to know about imposed sanctions against Russia and Ukraine?
Refer to the latest and most comprehensive list of Canadian Sanctions Related to the Ukraine, enacted by the Government of Canada.
7. I’m a Canadian business and I have more questions. Who can I contact?
Current EDC customers conducting business in Ukraine should contact their account manager to discuss the situation. Customers interested in doing business in the market are encouraged to contact 1-866-716-7201 or firstname.lastname@example.org to learn how our insurance and working capital solutions can support their activities. If you’re new to EDC, please call 1-800-229-0575 or tell us how we can help here. You can also send a question to our Export Help Hub.
Access to Canada’s Trade Commissioner Service (TCS) in Ukraine is limited due to the closure of Canada’s embassy in Kyiv. As such, EDC encourages companies to submit requests through the TCS’s online portal. EDC remains in contact with our government partners, including Global Affairs Canada (GAC) and the TCS to stay apprised of any occurrences on the ground that could affect Canadian exporters and investors.