New Russia Sanctions: 19 Individuals, 5 Entities

Summary#

These final regulations amend the Special Economic Measures (Russia) Regulations to add 19 individuals and 5 entities to Canada’s Russia sanctions list. The changes took effect on the day the regulations were registered: May 6, 2022 (published in the Canada Gazette on May 25, 2022).

What it does#

• Adds 19 named individuals and 5 named entities to Schedule 1 of the Special Economic Measures (Russia) Regulations, subjecting them to Canada’s broad dealings ban (an asset freeze and limits on transactions).
• The five entities added include Zelenodolsk Shipyard JSC, Military Industrial Company LLC, Rosgvardia, UEC Klimov JSC, and KAMAZ PTC.
• Makes a couple of small list updates (one existing item was replaced and one was removed).
• Requires financial institutions and other businesses to screen for the new names and block or report prohibited dealings. The listed names will be added to the Consolidated Canadian Autonomous Sanctions List.
• Breaching the rules can lead to penalties: a fine of up to $25,000 or up to 1 year in jail on summary conviction, or up to 5 years in jail on indictment.

Who's affected#

• The newly listed individuals and the five named entities—they face frozen assets in Canada and bans on transactions with Canadians.
• Anyone in Canada and Canadians abroad: individuals, businesses, charities, banks and other financial institutions who must not deal with the listed people or entities.
• Most Canadian small businesses are unlikely to be affected unless they have existing links with the newly listed people or entities.

Why it matters#

• Practically, Canadians and companies cannot give money, goods, services or other benefits to the listed people or entities. That blocks their access to Canada’s financial system and markets.
• These amendments are part of Canada’s broader response to Russia’s actions in Ukraine and are coordinated with allies.
• Enforcement and compliance work will involve the Royal Canadian Mounted Police, the Canada Border Services Agency, and monitoring by government officials; financial firms will update screening systems to catch the new listings.