New Russia Sanctions: 19 Individuals, 4 Entities

Summary#

These final regulations amend the Special Economic Measures (Russia) Regulations (SOR/2023-162) to add people and organizations to Canada’s list of sanctioned Russian-linked persons. The changes took effect on July 19, 2023 and impose a broad ban on dealings with those newly listed.

What it does#

• Adds 19 individuals and 4 entities to Schedule 1 of the Special Economic Measures (Russia) Regulations. Examples named include cultural figures such as Nikita Sergeyevich MIKHALKOV and Phillip Bedrosovich KIRKOROV, and organizations including Ministry of Culture of the Russian Federation, Ministry of Science and Higher Education of the Russian Federation, OOO BESOGON, and OOO “READOVKA.RU”.
• Places a broad prohibition on dealings with those listed. That generally means people in Canada and Canadians abroad may not provide funds, goods, services, or other benefits to the listed persons or entities.
• The new names will be added to the Consolidated Canadian Autonomous Sanctions List to help banks and businesses screen transactions.
• Enforcement and compliance duties are carried out by Global Affairs Canada (policy and listings), the Royal Canadian Mounted Police, and the Canada Border Services Agency.
• Penalties for knowingly breaking the rules can include a fine up to $25,000, imprisonment up to one year on summary conviction, or up to five years on indictment.

Who's affected#

• The 19 individuals and 4 entities that were added to the sanctions list.
• Canadian financial institutions and businesses that must screen customers and transactions and may block dealings with the listed parties.
• Companies or organizations that might have sought permits or exceptions related to transactions with the listed parties (the government says such cases are likely rare).
• The general public and most Canadian businesses are unlikely to notice direct effects, since these are targeted measures against specific people and organizations.

Why it matters#

• These additions specifically target people and groups Canada says promote Russian government propaganda or support actions that harm Ukrainian cultural heritage.
• In practical terms, the listed parties will find it hard to use Canadian banking, trade, or services, and anyone in Canada who deals with them risks penalties.
• The measures are meant to increase pressure on Russia, align Canadian action with allies, and signal condemnation of Russia’s invasion of Ukraine.
• Canada also notes it has provided over Can$5 billion in assistance to Ukraine since February 2022, and says these targeted sanctions are meant to be a focused tool that limits wider harm to ordinary citizens.