Russia sanctions: two individuals and two firms

Summary#

These final regulations add two people and two companies to Canada’s Russia sanctions list. The additions make those people and entities subject to the asset freezes and transaction bans already set out in the Special Economic Measures (Russia) Regulations. The regulations were registered on March 29, 2021 and published in the Canada Gazette on April 14, 2021.

What it does#

• Adds the following individuals to Part 1 of Schedule 1:
  • Aleksandr Nikolaevich GANOV
  • Leonid Kronidovich RYZHENKIN
• Adds the following entities to Part 2 of Schedule 1:
  • JSC Lenpromtransproyekt
  • JSC “The Berkakit-Tommot-Yakutsk Railway Line's Construction Directorate”
• As listed persons, they become subject to the measures in the Special Economic Measures (Russia) Regulations, including an asset freeze and prohibitions on certain dealings and services by people and businesses in Canada or Canadians abroad.
• The regulations took effect on the day they were registered (March 29, 2021) and applied before their Canada Gazette publication.

Who's affected#

• The four newly listed people and companies named above.
• Canadians and anyone in Canada who might hold property of, do business with, or provide services to those listed persons.
• Financial institutions in Canada (banks, payment processors) that screen transactions and update sanctions lists.
• Small businesses could face minor extra compliance steps if they deal with the listed persons, though the government expects links to Canada are limited.

Why it matters#

• In simple terms: Canadians must not deal with the frozen assets or provide services to the listed people and firms. Banks and businesses will add the names to their screening systems to avoid prohibited transactions.
• Penalties for knowingly breaking the rules can include a fine of up to $25,000, or imprisonment for up to 1 year on summary conviction, or up to 5 years on indictment.
• The listings are meant to respond to and discourage Russia’s actions in Ukraine and the illegal annexation and occupation of Crimea. They also align Canada with similar measures taken by other countries.