Sanctions and Arms Import Ban on Russia

Summary#

The federal government registered the Regulations Amending the Special Economic Measures (Russia) Regulations, which took effect on February 23, 2023. The changes add several Russian people and companies to Canada’s sanctions list, ban imports of Russian arms and related goods, and tighten export controls on some electronic materials.

What it does#

• Adds 7 individuals (including Alexei Alexandrovich MORDASHOV and several members of his family) and 50 entities (mainly Russian defence companies and research institutes) to the sanctions list in Schedule 1. Those listed face a broad dealings ban.
• Prohibits the import, purchase or acquisition from Russia of any weapon, ammunition, military vehicle, military or paramilitary equipment, and spare parts for those goods. The government says this covers items ranging from major weapons systems down to things like hunting knives and air rifles.
• Expands the rule against assisting prohibited activities so it is illegal for Canadians to knowingly cause, facilitate or assist in activities already banned under the Regulations.
• Adds an export prohibition on “chemical elements doped for use in electronics, in the form of discs, wafers or similar forms; chemical compounds doped for use in electronics” (Harmonized System code 3818.00).
• Confirms that the names will be added to the Consolidated Canadian Autonomous Sanctions List and that enforcement will be handled by federal agencies.

Who's affected#

• The 7 individuals and 50 entities named in the Regulations — mainly senior managers, defence firms and research institutes tied to Russia’s military industry.
• Canadian banks and financial institutions, which must update sanctions screening and block prohibited transactions involving the listed people and entities.
• Canadian businesses or individuals that import Russian arms or export the listed electronic chemicals; they will be barred from those dealings without special permission.
• Travelers, hobbyists or small businesses who might try to buy or bring back weapons or spare parts from Russia — the import ban covers a wide range of items.
• It is unclear how many Canadians or Canadian businesses currently have direct links with the newly listed Russian companies; the government expects limited direct economic impact on Canada.

Why it matters#

• These changes tighten Canada’s economic pressure on Russia by targeting people and firms tied to its defence and weapons industries. That is intended to make it harder for Russia to access technology, parts and money that could support its military activity in Ukraine.
• For everyday Canadians, the practical effects are mostly indirect: banks will add new names to screening lists, and a narrow set of importers/exporters will face new restrictions and possible permit requirements.
• The measures carry penalties for violations, including fines (up to $25,000) and possible jail time (up to one year on summary conviction or up to five years on indictment). Enforcement is by the Royal Canadian Mounted Police and the Canada Border Services Agency (CBSA).
• These amendments align Canada’s sanctions with those of allies and are part of a wider international response to Russia’s actions in Ukraine.