Lost Animated movie/commercial (with screencap)

Not sure if this post has been mentioned at all on here, but I thought i'd try and post it anyway.

Tumblr user mooncalfe made this post on their blog a few years ago asking for help identifying the origin of a screencap from an animated film from around 1992.
I'm going to re-post their text verbatim to break down what they know so far about it. I'm very curious about the origin of the screencap as well.



"WHAT WE KNOW:



-photo was taken in 1992, possibly around Christmas. movie/show could be from before 1992.

-likely Western animation but could be UK, Russian, or European.

-unknown source, whether it’s a movie, tv show, or commercial.

-most likely a Canadian broadcast.



ELIMINATED SO FAR, IT IS NOT:

-Teen Wolf cartoon

-The Littles

-Blackstar

-The Magician’s Hat

-Dreamstone

-Smurfs

-Rock and Rule

-Ferngully

-the Jetsons movie

-Keebler elves

-Black Cauldron

-Flight of Dragons

-the Princess and the Goblin

-Care Bears Nutcracker Suite

-Magic Voyage

-Freddie the Frog

-Hans and the Silver Skates

-Nilus the Sandman

-Rainbow Brite and the Star Stealer

-Herself the Elf

-Elm-chanted Forest

-Magic Riddle

-Gremlins

-Lady Lovely Locks

-An American Tail

-Felix the Cat

-Princess Starla

-Star Fairies

-Thumbelina

-the Town Santa Forgot

-the Wish That Changed Christmas

-Rudolph the Red-Nosed Reindeer



POSSIBLY BUT UNLIKELY DUE TO STYLE DIFFERENCES:

-Don Bluth

-DiC animation



PLEASE HELP THE SOLVE THE MYSTERY!!!!!!
"

Also there's additional incentive for users since the OP is offering a bounty of their art or money with finding the origin of this screencap WITH PROOF.
I've gone through a lot of low budget animated films like goldenfilms and such, but I haven't seen this particular character at all. Good luck LMW users!