New Russia sanctions: coal, metals, quantum

Summary#

The final regulations, titled Regulations Amending the Special Economic Measures (Russia) Regulations, were registered on June 13, 2025 and published in the Canada Gazette on July 2, 2025. They add new people and entities to Canada’s Russia sanctions list and impose new bans on certain exports to, and imports from, Russia (with staged start dates and limited transition exceptions).

What it does#

• Adds new names to the sanctions list:
  • Three individuals are added to Schedule 1.
  • Fourteen entities (mostly Russian quantum-research centres and related companies) are added to Schedule 1.
  • Examples mentioned in the regulations include International text-center for Quantum Optics and Quantum Technologies LLC (listed with aliases such as the Russian Quantum Centre), Federal Joint Venture Quantum Technologies, and Rusnano.
• Creates or expands trade bans between Canada and Russia:
  • Prohibits importing coal from Russia (new section on coal).
  • Prohibits exporting jet fuel and certain additives to Russia.
  • Prohibits exporting or supplying goods related to chemical and biological weapons (listed in a new Schedule).
  • Prohibits imports of certain metals and a broad set of “revenue‑generating” Russian exports (a long list of goods and tariff codes is added as Schedule 13).
  • Prohibits many industrial and high‑technology goods and components that could support Russia’s defence or sensitive technology sectors (schedules expand industrial and high‑tech item lists, including quantum‑related equipment).
• Expands an existing prohibition on helping or facilitating prohibited activities. That amended rule comes into force earlier than some of the trade bans (see dates below).
• Provides transition exceptions:
  • Some prohibitions do not apply to goods exported from Russia at least 60 days before the relevant ban starts.
  • Some prohibitions do not apply to goods covered by contracts entered into at least 60 days before the ban starts, if the goods are delivered within 120 days after the ban starts.
  • There is a specific contract cutoff of March 10, 2023 for certain metals rules (as described in the regulations).
• Comes into force on a staggered schedule:
  • Section on assisting in prohibited activities comes into force 30 days after registration (i.e., on July 13, 2025).
  • Most other new prohibitions come into force 60 days after registration (i.e., on August 12, 2025).
• Enforcement and penalties:
  • The usual sanctions enforcement rules under the Special Economic Measures Act apply, including criminal penalties up to $25,000 and/or 1 year imprisonment on summary conviction, or up to 5 years on indictment.
• Immigration effect:
  • Individuals listed may be found inadmissible to Canada under the Immigration and Refugee Protection Act.

Who's affected#

• Canadian exporters and importers of the listed goods. In 2024:
  • Exports from Canada to Russia of the categories now banned were about $2.7 million.
  • Imports into Canada from Russia of the newly banned categories were about $12.6 million.
  • The main provinces involved were Quebec ($2.4 million of exports; $5.5 million of imports) and Ontario ($931,000 of exports; $5.3 million of imports).
• Canadian businesses that sell to or buy from the newly listed Russian individuals or entities. Financial institutions must screen and block dealings with those listed.
• Airlines and aircraft operators may feel effects from the ban on jet fuel and additives to Russia.
• Research institutions and companies working in quantum and other high‑tech fields may be affected if they previously collaborated with the listed Russian entities.
• The three newly listed individuals and the 14 entities themselves (asset and transaction restrictions, and potential travel/immigration consequences).
• Government agencies involved in customs, enforcement and immigration (e.g., Canada Border Services Agency, Global Affairs Canada, RCMP) for implementation and compliance work.
• Small businesses that currently trade the specific, newly banned goods with Russia may face adjustment costs. The regulations include transition windows to lessen immediate disruption.

Why it matters#

• These changes expand Canada’s economic pressure on Russia. The aim is to reduce Russia’s ability to finance and sustain its war in Ukraine and to limit access to materials, machinery and sensitive technology that could support military development.
• The bans target broad categories (coal, metals, industrial goods, jet fuel additives, and sensitive high‑tech items). That can make it harder for buyers in Russia to obtain inputs for industry and defence.
• For most Canadians and most Canadian businesses the direct impact is likely to be small because trade with Russia is already limited. Still, some companies will need to find new suppliers or customers and may face short‑term costs.
• The rules align Canada with measures taken by other like‑minded countries. They also impose legal obligations on banks and businesses to check sanctions lists and refuse prohibited transactions. Permits for specific exceptions can be sought but are issued only rarely and on an exceptional basis.