Canada and Germany are close to a deal that would allow the return of a Russian gas turbine, the absence of which Moscow blames for its decision to cut gas supplies to Europe, according to a senior Canadian official. The turbine, built by Germany’s Siemens Energy Canada, is being repaired at the company’s Montreal facility. But his return to Russia has been complicated by sanctions imposed by Canada following Moscow’s full-scale invasion of Ukraine. These sanctions prohibit the export of certain goods and technologies to Russia, including the turbine. The European Union also imposed new sanctions on Russia after the invasion began, and the bloc spent the next few months reconciling its opposition to the war with its need for Russian fuel. The resulting uncertainty has plunged the continent into an energy crisis, with Germany bracing for gas rationing in the winter months. The official said Canada and Germany are in talks with Ukraine, which has opposed the idea of lifting sanctions to return the turbine, and that a decision on releasing the device is days away. The official, whom The Globe and Mail is not naming because they were not authorized to discuss the negotiations publicly, added that there was still more work to be done, but that all sides were working toward a “positive solution.” The Ukrainian embassy in Ottawa said it hoped Canada would remain committed to full sanctions against Russia. “We are aware of the dialogue between Canada and Germany regarding the Siemens turbine and hope that the Canadian government will ensure the full integrity of the current sanctions regime,” said Oksana Kyzyma, First Secretary at the Embassy of Ukraine. Gazprom, the Russian state gas company, blamed the missing turbine for its decision to reduce capacity along the Nord Stream 1 gas pipeline, which runs under the Baltic Sea to Germany, by up to 60%. The Kremlin said on Friday it would increase gas supplies to Europe if the turbine is returned. The official said Russia has an extra turbine it could put into operation and is using the imposed turbine as an excuse to put economic pressure on Europe. The return of the turbine will eliminate that excuse, the official said. Reuters reported on Friday, citing a German government source, that a decision has already been made to return the turbine. The turbine will be sent to Germany, which will then hand it over to Gazprom so that Canada does not run afoul of sanctions, a government source told Reuters. At a press conference on Friday, Steffen Hebestreit, chief spokesman for German Chancellor Olaf Scholz, said only: “I can confirm that there are positive messages from Canada. I cannot yet confirm that the delivery is on its way.” The Canadian official said no final decision had been made, but acknowledged the matter was urgent. The official added that Canada understands that Germany and Europe want the turbine returned to help the continent replenish its supplies of Russian natural gas before the winter months. The official said Germany is a close friend of Canada and noted that Europe will depend on Russian gas until it finds other reliable sources. Mr. Scholz raised the turbine issue directly with Prime Minister Justin Trudeau at a G7 meeting in Germany in late June. The chancellor is planning a trade visit to Ottawa on August 22 and 23 to push for its construction LNG export facilities on Canada’s east coast, which would allow Europe to replace part of its Russian supply with Canadian fuel. A German official said Berlin hoped the turbine dispute could be resolved before the visit. The Globe is not identifying the official because they were not authorized to discuss the matter publicly. On Thursday, German Vice-Chancellor and Economy Minister Robert Habeck appealed to Ottawa to release the turbine to allow Europe to replenish its natural gas supplies. He said returning the turbine to Germany would remove the excuse used by Russian President Vladimir Putin to cut gas flows to Europe. Keean Nembhard, press secretary to Canada’s Natural Resources Minister Jonathan Wilkinson, would neither confirm nor deny that a deal to return the turbine was imminent. Sabine Sparwasser, Germany’s ambassador to Ottawa, told The Globe on Thursday that she understands the Trudeau government is under pressure from Ukraine and the Ukrainian-Canadian community. so that the turbine does not return. “Europe and Germany are very supportive of sanctions … but we also said that we should not get sanctions that hurt us more than they hurt Russia,” he said. Oksana Kyzyma, first secretary of the Ukrainian embassy in Ottawa, said the embassy hopes the Canadian government “will ensure the full integrity of the current sanctions regime.” Ukrainian Canadian Congress national president Alexandra Chyczij wrote to Prime Minister Trudeau on Wednesday to stress the importance of not returning the turbine and ensuring that all sanctions on Moscow remain in place. “Russia seeks to set a precedent for lifting sanctions, which will then be used to extract more sanctions waivers and undermine Western unity. We urge the Government of Canada to see through this obvious ruse and use their good offices to broker a solution that does not involve the lifting of sanctions,” Mr. Chyczij wrote. Mr Chyczij added that Ukraine has offered what he called an “attractive alternative, namely a discount on the use of Ukraine’s transit pipelines for gas transit to Germany and the EU”. 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