New Russia sanctions: 33 entities added

Summary#

These final regulations, registered April 8, 2022, add 33 Russian-linked entities to Canada’s sanctions list under the Special Economic Measures (Russia) Regulations. The change extends Canada’s existing sanctions in response to Russia’s invasion of Ukraine (begun February 24, 2022) and takes effect from the registration date.

What it does#

• Adds 33 named entities (mostly defence-related companies and research institutes) to Schedule 1 of the Special Economic Measures (Russia) Regulations. Examples include Kronshtadt, Baikal Electronics JSC, and Kurganmashzavod PJSC.
• Replaces the name listed at item 120 with Komsomolsk-on-Amur Aircraft Plant.
• Subjects the newly listed entities to Canada’s broad dealings ban. In plain terms, people in Canada and Canadians abroad are prohibited from dealing in the property of, entering into transactions with, providing services to, or otherwise making goods available to listed persons.
• These regulations were published in the Canada Gazette on April 27, 2022 but apply from the registration date (April 8, 2022) and were intended to apply before publication because of urgency.

Who's affected#

• Canadians and anyone physically in Canada who might have financial or commercial dealings with the newly listed entities.
• Canadian businesses and institutions that process international transactions, especially banks and other financial institutions that must screen for and block dealings with listed names.
• The listed Russian entities themselves, and any foreign companies or persons that contract with them.
• Enforcement and compliance activity involves Royal Canadian Mounted Police and Canada Border Services Agency. Penalties for knowingly breaking the rules include fines up to $25,000 or imprisonment up to 1 year on summary conviction, and up to 5 years on indictment.

Why it matters#

• It expands targeted sanctions against organisations Canada says help Russia’s military activities in Ukraine. That can freeze assets, block contracts, and stop Canadian services or goods from reaching those entities.
• For most Canadians and small businesses the practical effect will be limited, but banks and exporters need to update checks and may face minor compliance costs.
• The move keeps Canada aligned with allied actions aimed at increasing economic pressure on Russia over its actions in Ukraine.