New Sanctions: 122 Russians, 13 Entities

Summary#

The final rule titled Regulations Amending the Special Economic Measures (Russia) Regulations: SOR/2023-33 adds a large group of Russian people and organizations to Canada’s sanctions list. The amendments took effect on February 23, 2023 and were published in the Canada Gazette on March 15, 2023.

What it does#

• Adds 122 individuals to Schedule 1 of the Special Economic Measures (Russia) Regulations. The new names include Russian parliamentarians, senior officials, ministers, military figures and some family members of previously listed people.
• Adds 13 entities to Schedule 1. Examples include the Federal Security Service of the Russian Federation, the Main Directorate of the General Staff of the Armed Forces of the Russian Federation, United Russia, the Federal Guard Service, Rosneftegaz, the State Duma, the Federation Council, and the Operating Organisation of the Zaporizhzhia NPP.
• Replaces the entry at item 1074 with Mikhail Victorovich PETROV (a name correction or update to an existing listing).
• These changes are made under the authorities of the Special Economic Measures Act and take effect as of the registration date (February 23, 2023).

Who's affected#

• The newly listed Russian individuals and organizations named in the regulations.
• Canadian banks and other financial institutions, which must screen for and block dealings with listed people and entities.
• Canadian businesses or people who might otherwise do business with the listed persons or entities — such dealings are now prohibited.
• It is possible that most listed people and entities have limited direct ties to Canada; the government’s analysis expects only modest compliance costs for Canadian firms.

Why it matters#

• Being listed means an effective freeze and broad ban on transactions: people and companies in Canada cannot deal in the property of, or provide services to, these listed individuals and entities. That limits their ability to use Canadian financial services or access assets in Canada.
• Canadian banks and businesses will need to update screening systems and may refuse or block transactions tied to these names. That may cause delays or extra checks for some customers.
• The rules are enforced by Canadian agencies and breaking them can carry penalties, including fines and jail: summary-conviction fines up to $25,000, possible imprisonment up to 1 year (summary) or up to 5 years on indictment.
• These additions are part of Canada’s broader, coordinated sanctions against Russia and aim to increase pressure related to Russia’s actions in Ukraine.