New Russia Sanctions: 2 People, 6 Companies

Summary#

The government added two people and six companies to the list of sanctioned persons under the Special Economic Measures (Russia) Regulations. The changes took effect on May 16, 2024 and were published in the Canada Gazette on June 5, 2024.

What it does#

• Adds these individuals to the sanctions list: Vladimir Vladimirovich MIKHEYCHIK and Vladimir Ivanovich SHASTIN.
• Adds these companies to the sanctions list: Sovfracht JSC, Azia Shipping Company LLC, The 224th Flight Unit State Airlines JSC (TTF Heavy Lifting), Marine Trans Shipping LLC, M Leasing LLC, and MG-Flot LLC (also known as TransMorFlot).
• Freezes listed persons’ assets in Canada and generally prohibits people in Canada and Canadians abroad from:
  • doing business with them;
  • providing them services or goods;
  • transferring property to them.
• Makes the named individuals inadmissible to Canada under the Immigration and Refugee Protection Act.
• Names will be added to the Consolidated Canadian Autonomous Sanctions List so banks and service providers can screen for them.
• Enforcement and penalties include fines up to $25,000, or up to one year in jail on summary conviction, and up to five years on indictment.

Who's affected#

• The two named people and the six named companies.
• Canadian individuals and businesses that might otherwise trade with or provide services to those listed companies.
• Canadian banks and financial institutions, which must update screening and monitoring systems.
• Transport, shipping, air cargo, logistics, insurance and related service providers who deal with international cargo routes.
• Enforcement bodies such as the Royal Canadian Mounted Police and Canada Border Services Agency (for investigations and border controls).
• It is unclear from the notice whether these listed persons had significant commercial ties to Canada; the government says it expects limited direct impact on most Canadian businesses.

Why it matters#

• The government says these people and companies helped move weapons, ammunition or related equipment from North Korea to Russia. The listings are meant to make that harder.
• For everyday Canadians, the change mostly matters because banks and businesses will screen for these names. That can mean extra checks if you work in shipping, finance, or international trade.
• For the broader public, the measure is part of Canada’s effort to pressure Russia over its war in Ukraine and to coordinate with other countries using targeted sanctions.