Canada will establish an $18 billion sovereign wealth fund

Canadian Prime Minister Mark Carney announced the creation of the country’s first-ever sovereign wealth fund, with an initial capital of 25 billion Canadian dollars (18.38 billion U.S. dollars). The fund, named Canada Strong, is designed to invest in large-scale domestic projects and build national wealth for future generations. 

This was reported by Reuters.

The new institution will operate on a commercial basis in partnership with the private sector, ensuring capital growth through the reinvestment of profits. The announcement was made ahead of the release of the updated national budget. According to Mark Carney, the fund will serve as a national savings vehicle, similar to the investment structures of other resource-rich countries.

The creation of such a fund is a strategic step to strengthen the country’s economic resilience amid global instability caused by Russia’s actions and other geopolitical challenges. Canada Strong will focus on developing critical infrastructure and supporting industrial capacity directly within the country. This will allow Canada to manage natural resource revenues more effectively and ensure long-term economic development.

Earlier, Canadian Prime Minister Mark Carney stated his intention to support Ukraine and said he does not consider peace options dictated by Moscow.

The Canadian government announced the introduction of a new package of sanctions against Russia ahead of the fourth anniversary of the full-scale invasion. One of the key steps was lowering the price cap on Russian crude oil from $47.6 to $44.1 per barrel, which was done in coordination with European allies.