Sanctions add 19 individuals, 5 entities

Summary#

These final regulations change the Special Economic Measures (Russia) Regulations. They add several people and entities to Canada’s Russia sanctions list, adjust a few export exemptions, and repeal Schedule 6. The changes came into force on May 3, 2022 and were published in the Canada Gazette on May 25, 2022.

What it does#

• Changes wording of some exceptions in paragraph 3.6(3) of the Special Economic Measures (Russia) Regulations so that:
  • media representatives can temporarily export certain goods if they are from Canada or a partner country listed in Annex 1 to the Restricted Goods and Technologies List;
  • goods can be used by a department or agency of the Government of Canada or of a partner country listed in Annex 1 to that List;
  • software updates can be provided to civilian end-users that are owned, held or controlled by a Canadian or a national of a partner country listed in Annex 1.
• Replaces a line in the French text about personal effects to clarify the rule in French.
• Adds named people and entities to Part 1 of Schedule 1 (the regulation’s main list of designated persons and entities). The government says this is 19 individuals and 5 entities involved in the defence sector.
• Repeals Schedule 6.
• Takes effect on the day it was registered (May 3, 2022).

Who's affected#

• The newly listed people and companies. The government describes them as senior defence officials and defence entities in Russia.
• Banks and other financial institutions, which must screen and block dealings involving listed persons and update compliance systems.
• Canadian exporters and service providers who work with controlled goods, software updates, or defence-related customers.
• Media representatives and Government of Canada departments or agencies, because the rules adjust exceptions that may affect temporary imports or exports for their use.
• Enforcement and implementation bodies, including Global Affairs Canada, the Royal Canadian Mounted Police, and the Canada Border Services Agency. The names will be added to the Consolidated Canadian Autonomous Sanctions List for reference by businesses and banks.

Why it matters#

• People and entities added to Schedule 1 face a broad ban on dealings from Canadians. That normally means asset freezes and a prohibition on providing services, goods or financial transactions involving those listed.
• If someone knowingly breaks the rules, criminal penalties apply: upon summary conviction a fine up to $25,000 or imprisonment for up to one year, or on indictment imprisonment for up to five years.
• The practical effect for most Canadians is limited. The government says the newly listed targets likely have few links to Canada, so impacts on Canadian businesses and the public should be small.
• The measure is part of coordinated international pressure on Russia over its actions in Ukraine. It signals Canada’s alignment with allies and aims to increase economic and political costs for the targeted individuals and entities.