OTTAWA: Canada has changed its investment rules to make it more difficult for foreign state-owned companies to buy into the critical minerals sector. The new stance followed a backlash over China's moves to secure supplies in Canada of dozens of essential elements such as cobalt, lithium and manganese that are used in solar panels, wind turbines and electric vehicle batteries. Investments by foreign state-owned enterprises in Canada's critical minerals sector will only be approved on "an exceptional basis," the government said in a statement.

The higher scrutiny applies to all investments and not just takeovers of Canadian companies, as was previously the case. Industry Minister Francois-Philippe Champagne said a foreign state-owned company's participation in such transactions could be sufficient grounds to block a deal on the basis that it "could be injurious to Canada's national security." Over the past two decades China has invested billions in Canada to secure supplies of critical minerals.

Most recently, Ottawa allowed Chinese state-owned Zijin Mining Group to acquire Canadian lithium firm Neo Lithium Corp in January. That led to parliamentary hearings and had put Champagne on the defensive. Touring a lithium recycling facility in Montreal with visiting Secretary of State Antony Blinken on Friday, Foreign Minister Melanie Joly commented that demand for lithium was poised to increase by 4,000 percent. "The world needs critical minerals," she said. "Canada can become a hub for critical minerals."

Fresh sanctions

Canada on Friday announced fresh sanctions against 35 individuals and six companies in Russia's energy sector, as well as a bond issue to support Ukraine. The sanctions target oil and gas giant Lukoil and senior officials at Gazprom and its subsidiaries, as well as Russia's energy and industry ministers, Deputy Prime Minister Alexander Novak and former prime minister Viktor Zubkov.

Former National Hockey League player Alexander Frolov and chess grandmaster Anton Demchenko also made the list, which now covers more than 1,400 individuals and entities accused of complicity in Russia's invasion of Ukraine. Funds raised from the issuing of the five-year Ukraine bonds, meanwhile, aim to help Kyiv pay pensions and "keep the lights on," Prime Minister Justin Trudeau told a news conference. "Ukrainian sovereignty bonds are a way for Canadians to directly contribute to the fight against Russia, to support the Ukrainian people and the Ukrainian government," he said.

Officials declined to say how much Ottawa hopes to raise through the bond issue, which is also open to foreign buyers. Proceeds will be channeled through an International Monetary Fund account set up in April for grants and loans to Ukraine. The Ukrainian Canadian Congress, a community group representing the diaspora, praised Canada's move in offering the "ground-breaking investment in a peaceful, democratic and just future, not only for Ukraine, but for all of Europe." "The UCC calls on all states who believe in freedom and liberty to follow Canada's example," it said in a statement. - AFP