New Russia Sanctions: 38 Individuals, 16 Entities

Summary#

The Regulations Amending the Special Economic Measures (Russia) Regulations add 38 people and 16 organizations to Canada’s Russia sanctions list. They also add a short shipping exception tied to the international price cap on Russian petroleum products. Most changes came into force on registration (February 2, 2023); one part came into force on February 5, 2023.

What it does#

• Adds 38 individuals (mainly media figures, pundits, researchers and cultural personalities) to Part 1 of Schedule 1 of the Special Economic Measures (Russia) Regulations. Those listed face a broad ban on dealings with people and property in Canada.
• Adds 16 entities (media outlets, websites and related organisations) to Part 2 of Schedule 1.
• Changes subsection 3.12(2) to create two short exceptions for services related to goods already on ships when the international price-cap rules took effect:
  • goods in item 1 of Schedule 5 that were loaded before December 7, 2022 and unloaded before January 21, 2023; and
  • goods in item 2 of Schedule 5 that were loaded before February 5, 2023 and unloaded before April 1, 2023.
• Section 1 of the amendments came into force on February 5, 2023; the rest came into force on registration (registered February 2, 2023).
• The names will be added to Canada’s Consolidated Canadian Autonomous Sanctions List so financial institutions and others can update their screening systems.
• These Regulations are enforced in Canada; penalties include fines up to $25,000, or imprisonment up to 1 year on summary conviction, or up to 5 years on indictment.

Who's affected#

• The 38 named individuals and the 16 named entities added to Schedule 1. They are the direct targets of the new measures.
• Canadian banks and other financial institutions, which must screen for and block prohibited dealings with listed people and entities.
• Businesses that apply for permits to carry out activities otherwise prohibited by the sanctions — they may see extra administrative steps.
• Importers, shippers or service providers involved with Russian petroleum product shipments that fall within or near the listed loading/unloading dates.
• Law enforcement and border agencies, including the Royal Canadian Mounted Police and the Canada Border Services Agency, which have roles in enforcing the rules.

Why it matters#

• The amendments freeze or restrict economic links between Canada and the newly listed people and organisations. That can block transactions, freeze assets, and prevent services or goods being provided in Canada to those listed.
• The measures target actors accused of spreading Russian disinformation about the invasion of Ukraine. Canada says the goal is to raise the cost of those activities and limit their reach.
• The shipping exception helps align Canada with other countries that are implementing an international price cap on Russian petroleum products, by allowing a narrow window for certain shipments already underway.
• For most Canadians the changes will be invisible. The main effects are on the listed individuals and organisations, on compliance work by banks and some businesses, and on Canada’s diplomatic and economic pressure on Russia.