War mostly bings death, destruction and suffering, but it also brings profits for some. In the case of the current war in the Ukraine, much profit will be brought to Canada’s Prairie Provinces.
We have already seen the dramatic escalation in the price of oil, currently soaring to as high as $139 US, the highest in years. A major driver is the involvement in the war of Russia, the world’s third largest oil producer. Russian oil is facing sanctions and an uncertain future as the majors pull out of the country, taking their expertise with them. Gas prices, too, are surging. All good for Alberta’s revenues, which soar along with the price.
The war also seriously undermines the export potential of two of the largest wheat exporters, Russia and Ukraine. Prices are hitting record highs since the invasion. Canada, the world’s second largest wheat exporter, will enjoy the benefits. Chief beneficiary will be Saskatchewan, the country’s bread basket, followed by Alberta and Manitoba.
Canada is also the world’s largest potash producer, and will benefit from the second and third largest producers, Russia and Belarus, involvement in the war. The vast majority of potash in Canada is found in Saskatchewan.
There is a tragic irony in all this. The Prairie Provinces have the highest Ukrainian populations in the country by percentage. One cannot imagine a community that would less want to profit from this war.
Prairie folk will not escape the punishment of higher energy and food prices, but we will be richly compensated for our additional expense.
The province of Alberta is donating $11-million to Ukraine for humanitarian and defensive military purposes. Alberta has also divested from Russian securities, ordered Alberta Gaming, Liquor and Cannabis to ban new stocks of Russian-made liquor, and instructed the Labour and Immigration Minister to accelerate Ukrainian applications for permanent residency.
We in Alberta, as well as the citizens of Saskatchewan and Manitoba, can hardly do too much, considering how the war is lining our pockets.
2 thoughts on “The Ukraine war—a boon for the Prairies”
“Prairie folk will not escape the punishment of higher energy and food prices, but we will be richly compensated for our additional expense.”
How? Trickle down again?
It is simply another happy ending for the rich people
Paid for by all ordinary people without corporate interests
The benefits will be spread widely. Governments will receive more revenue in royalties and taxes, and therefore will have more for public services. Farmers will benefit from higher wheat prices; small oil and service companies from more business, etc., etc.