Arms embargo and new Russia sanctions

Summary#

These are final changes to the Special Economic Measures (Russia) Regulations that tighten Canada’s sanctions related to the war in Ukraine. They ban certain arms trade and services with Russia and add 20 individuals and 21 entities to Canada’s sanctions list. The amendments took effect on registration (July 19, 2023) and were published in the Canada Gazette (August 2, 2023).

What it does#

• Bans people in Canada and Canadians abroad from importing, purchasing or acquiring arms and related material from Russia.
• Bans people in Canada and Canadians abroad from exporting, selling, supplying or shipping arms and related material to Russia, wherever the goods are located.
  • Exception: non-lethal military equipment used only for humanitarian work, human-rights monitoring or protection, and related technical assistance and training.
  • Exception: members of the Canadian Forces acting on official duties (for example, diplomatic security or authorised humanitarian tasks).
• Prohibits providing financial, technical or other services that relate to the sale, supply, transfer, manufacture, maintenance or use of arms and related material to Russia or persons in Russia.
• Defines “arms and related material” to include weapons, ammunition, military equipment (including military vehicles), paramilitary equipment and spare parts.
• Adds 20 individuals and 21 entities to Schedule 1 of the Regulations. These are people and organizations identified as supporting Russian military, paramilitary or certain nuclear-related activities (including links to the private military company Wagner and parts of the nuclear sector).
• Names of the newly listed people and entities will be added to the Consolidated Canadian Autonomous Sanctions List for enforcement and compliance.

Who's affected#

• Canadian exporters, manufacturers, brokers and service providers of weapons, military or paramilitary equipment and related parts or services.
• Banks and financial institutions that must monitor and freeze dealings with listed persons and entities.
• The newly listed individuals and entities (their assets and dealings in Canada are effectively blocked).
• The Royal Canadian Mounted Police and the Canada Border Services Agency will enforce the rules.
• Small businesses are unlikely to be heavily affected, but those that seek permits for restricted exports could see extra costs or denials.
• If it is unclear whether a specific person or shipment is covered, the source material indicates consultations with Global Affairs Canada are the route for clarification.

Why it matters#

• The changes strengthen Canada’s effort to limit Russia’s ability to buy, build or maintain weapons and to cut revenue streams that could fund the war in Ukraine.
• The arms embargo and service ban aim to prevent direct supply and to stop indirect routes (for example, goods routed through third countries).
• For Canadians and businesses, this means stricter checks on exports, bank transactions and any dealings with the newly listed names.
• Breaking the rules can carry criminal penalties: a fine of up to $25,000 and/or imprisonment for up to 1 year on summary conviction, or imprisonment for up to 5 years on indictment.