Volga-Dnepr Subsidiaries Added to Russia Sanctions

Summary#

The final rule titled Regulations Amending the Special Economic Measures (Russia) Regulations adds two companies to Canada’s Russia sanctions list and clarifies who can be listed. The changes took effect on the day they were registered, February 14, 2025, and were published in the Canada Gazette on February 26, 2025.

What it does#

• Adds these two entities to Schedule 1, Part 2 of the sanctions list:
  • 651 — Volga-Dnepr Airlines (Ireland) Limited
  • 652 — Volga-Dnepr Logistics B.V.
• Changes the rules about who can be listed:
  • Expands the criterion for listing people or companies that helped violate Ukraine’s sovereignty so that past conduct (not only ongoing conduct) can be the basis for listing.
  • Makes clear that former senior officials of listed companies can also be listed.
• Confirms that people and firms in Canada, and Canadians abroad, are prohibited from dealing with newly listed persons unless a special permit or exception applies.
• Notes the usual process exists for a listed person to ask to be removed from the list, and that the names will be added to the government’s consolidated sanctions list for compliance use.

Who's affected#

• The two newly listed companies: Volga-Dnepr Airlines (Ireland) Limited and Volga-Dnepr Logistics B.V.
• Their parent and affiliated companies and current or former senior officials connected to those entities.
• Canadian businesses and financial institutions that must screen clients and transactions against the sanctions list.
• Any person in Canada or Canadians outside Canada who might otherwise do business with those listed entities (those dealings are now prohibited unless a permit or exception applies).
• Enforcement and compliance bodies, including the Royal Canadian Mounted Police and the Canada Border Services Agency, which can enforce the rules.
• The federal department that runs sanctions, Global Affairs Canada, which will publish and maintain the listings and handle permit and removal requests.

If a person or firm has no links to Canada, the government says they do not expect significant impact on the Canadian economy.

Why it matters#

• These amendments target companies the government says helped move sanctioned goods and so aimed to reduce ways Russia can get materials for its war in Ukraine. That is the stated policy goal.
• In practical terms, the listings cut off the named companies and connected officials from normal dealings with Canadians and the Canadian financial system. That can make it harder for them to operate internationally.
• Violating the rules can lead to criminal penalties: summary conviction fines up to $25,000 or imprisonment up to one year, and on indictment imprisonment up to five years.
• The changes are part of broader international efforts to stop sanctions evasion and to pressure actors that support Russia’s military activities in Ukraine. The government noted Canada has committed $19.5 billion (financial, military and other assistance) to support Ukraine since the full‑scale invasion began on February 24, 2022.