Ban on Russian Steel and Aluminum Imports

Summary#

These final rules, titled Regulations Amending the Special Economic Measures (Russia) Regulations, ban the import into Canada of certain Russian steel and aluminum products. They came into force on March 10, 2023 and also expand the prohibition on helping others to carry out activities already banned by the Regulations.

What it does#

• Adds Schedule 11 to the Special Economic Measures (Russia) Regulations, listing steel (Chapter 72) and aluminum (Chapter 76) products that cannot be imported from Russia.
• Exempts goods covered by contracts entered into before the amendment came into force.
• Replaces section 5 to make it illegal for anyone in Canada, or any Canadian abroad, to knowingly cause, facilitate or assist in activities prohibited by the Regulations (that now include the new import ban).

Who's affected#

• Canadian importers, distributors and buyers of steel and aluminum goods that would have come from Russia.
• Small businesses that source metal products internationally may need to find other suppliers.
• Canada Border Services Agency and Royal Canadian Mounted Police are the main domestic enforcers.
• Anyone who knowingly helps others evade the bans could face criminal penalties. Penalties include a fine of up to $25,000, or up to one year in jail on summary conviction, or up to five years on indictment.
• The government says Canadian imports of the affected Russian products were about $98.4 million in 2022, and that imports had already mostly stopped before this rule.

Why it matters#

• The rule aims to stop revenue from Russian steel and aluminum trade reaching actors that support the invasion of Ukraine.
• It brings Canada into closer alignment with allies that have taken similar steps, reducing the chance that banned goods would be rerouted to Canada.
• For businesses, the immediate effect is practical: they cannot import the listed Russian metal products and may need to switch suppliers, though officials expect the direct economic impact to be small given prior declines in such imports.