Canada also agreed to issue a "term and repelable" license to exempt Nord Stream equipment from sanctions on the Russian oil and gas industry.
According to Bloomberg, the decision was made in response to opposition from the Ukrainian government and the Ukrainian community in Canada, who said that bringing the turbine back to Germany would undermine Russia's sanctions policy.
German officials have urged Canada to seek the return of the turbine, amid concerns Russia will use the issue as an excuse to close Nord Stream and limit the ability to fill Germany's gas reservoirs before the winter.
In a statement on July 9, Canadian Natural Resources Minister Jonathan Wilkinson said the export license was granted after extensive discussions with European friends and allies, as well as the International Energy Agency.
Canada will issue a temporary license and can revoke it to Siemens Canada to allow the return of the repaired Nord Stream 1 turbines to Germany, Minister Wilkinson said in a statement. Without the necessary supply of natural gas, the German economy will face great difficulties and the Germans themselves will be at risk of not being able to heat their homes as winter approaches.
The Tuabin - manufactured by Siemens Energy in Canada - has been sent to Montreal for repair and is stuck due to sanctions on the Russian oil and gas industry over its military campaign in Ukraine.
According to RT, last month, an operational problem due to failure to restore the turbine for maintenance on time forced Nord Stream, a company under Russian energy giant Gazprom, to reduce traffic through the pipeline to 40% of its capacity.
On July 8, Russia said gas supplies to Europe would increase if the turbine was brought back.
Meanwhile, Ukraine is said to be trying to block the return of the turbines to Russia.
The dispute comes as Russia and the EU are facing more stalemates, as the EU is trying to wean the alliance off Russian energy in an effort to reduce its dependence on the country under sanctions.
Also on July 9, Canada announced that it would expand sanctions against Russia to include the industrial manufacturing sector.
These new sanctions will apply to road and pipeline transportation, metal and transportation production, computers, electronic devices and machinery, said Canadian Foreign Minister Melanie Joly in a statement.
When these measures come into effect, Canadian businesses will have 60 days to terminate contracts with targeted industries and services.
