Russian president Boris Yeltsin has ordered senior officials in his government to try to increase two-way trade with Canada through the Port of Churchill.
A Canadian government official traveling this week with prime minister Jean ChrŽtien in Russia said in an Oct. 20 interview from Moscow that Yeltsin issued the order during a meeting earlier in the day.
He said the Russians could ship scrap metal to North America and carry back bulk commodities, mainly grain, from Canada.
“Yeltsin was real hot on it,” said the Canadian official, who agreed to speak only without attribution. “It looks positive. It fits into their whole concept that we have to expand our northern relationship. They are really into this circumpolar relationship.”
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Increased use of the northern Hudson Bay port was first raised by ChrŽtien Oct. 19 when the two met at Yeltsin’s country estate outside Moscow. Yeltsin raised it again the next day when they met back in Moscow.
“I want you to follow up on this,” the official quoted the Russian president as telling one of his ministers. “This is a good proposal, a big-time proposal.”
ChrŽtien also raised the issue in a meeting with Russian prime minister Victor Chernomyrdin, selling it as an efficient way to increase trade because Churchill is 1,500 kilometres closer to Russia than other shipping routes.
And Russian ships, with heavier hulls, will be able to ply the waters of Hudson Bay later in the year without risk of ice damage, said the official.
One result could be increased grain sales to Russia, although the official said the issue of a resumption of credit sales was not raised.
Russia has purchased little grain from Canada since the line of credit was frozen over fears that the economically troubled country would not be able to repay its multi-billion dollar debt.
But the official said increased grain trade would be one of the results of increased polar trade. “The shorter distance would make it more practical for them to increase their grain purchases from us.”
At Churchill, news of the high-level talks over increased trade was met enthusiastically.
“It would be great for the port,” said Dan Demeulles, superintendent of the Churchill grain elevator.
“When the Russian trade came through here, it was mainly cargo and that is important to the future of this port. It usually means there is some two-way traffic and that would be a Godsend to the railway.”
The government official said foreign affairs minister Lloyd Axworthy, who champions Churchill as a Manitoba MP, would follow up discussions with the Russians.
As an example of potential Russian cargo, Yeltsin mentioned twice that he recently had signed an order to turn a large navy ship into scrap which will be sold.
