Russia sanctions: 14 individuals, 34 entities added

Summary#

These final regulations (SOR/2023-72) add new names to the Canadian sanctions list under the Special Economic Measures (Russia) Regulations. The change puts 14 individuals and 34 entities on a list that blocks most dealings with them. The regulations were registered on April 5, 2023 and published in the Canada Gazette on April 26, 2023.

What it does#

• Adds 14 individuals and 34 entities to Schedule 1 of the Special Economic Measures (Russia) Regulations. The full lists of names appear in the Canada Gazette notice.
• Subjects those named to a broad ban on dealing with them. That generally means people and businesses in Canada cannot:
  • hold or deal with their property,
  • enter into transactions with them,
  • provide services or make goods available to them.
• Targets include senior managers and officials linked to companies that provide military, logistics or technical support to Russia’s armed operations (the notice identifies links to the Wagner Group Private Military Company and to military-technology and aviation firms).
• The names will be added to Canada’s Consolidated Canadian Autonomous Sanctions List so banks and other institutions can flag them.

Who's affected#

• The main people affected are the 14 individuals and 34 entities named in the regulation (their names are listed in the Gazette notice).
• Anyone in Canada and Canadians abroad who might do business with those listed people or companies.
• Canadian banks and financial institutions, which must update screening systems and refuse or freeze transactions involving listed parties.
• Businesses that import, export, or provide services that could touch the listed entities may need to check whether a permit is required.
• Enforcement will involve Global Affairs Canada, the Royal Canadian Mounted Police, and the Canada Border Services Agency.

Why it matters#

• The measures freeze economic links with people and companies judged to be supporting Russia’s military actions in Ukraine. That can block access to funds, goods, services and contracts.
• For ordinary Canadians the direct impact is likely small unless you or your business has dealings with the newly listed names. Financial institutions and some companies will see minor compliance costs to update controls.
• The rule is part of Canada’s broader effort (in coordination with allies) to increase pressure on Russia and limit its capacity to continue the invasion of Ukraine.
• Breaking the rules can lead to penalties, including fines and jail time (the Gazette notice sets out penalties up to $25,000, up to 1 year on summary conviction, or up to 5 years on indictment).