On December 6, 2023, the Minister of Foreign Affairs announced Canada’s new import restrictions on Russian diamonds and diamond jewelry related products under the Special Economic Measures (Russia) Regulations (the “Regulations”). Any person in Canada and any Canadian outside Canada are prohibited from importing, purchasing or acquiring any good listed in Part 2 of Schedule 6 of the Regulations wherever situated, from Russia or from any person in Russia. The new additions to Part 2 of Schedule 6 include unset and unmounted non-industrial diamonds and synthetic or reconstructed diamonds, as well as jewellery and watches with precious metals. The amendments came into effect on December 5, 2023.
This importation ban on Russian diamonds and related jewelry products is in coordination with Canada’s G7 partners in an effort to reduce revenues the Russian Federation extracts from the export of non-industrial diamonds mined, processed or produced in Russia and thereby reducing financing conflict in Ukraine. This follows the implementation of Canadian sanctions against Russia’s state-owned diamond conglomerate, Alrosa, following Russia’s invasion of Ukraine in 2022.
Additionally, on November 10, 2023, the Government of Canada notified Oleg Boyko that he was delisted from Schedule 1 of the Regulations. Canada added Boyko to Schedule 1 of the Regulation in April 2022 in response to Russia’s invasion of Ukraine. In August 2023, Boyko filed an application for judicial review against the Minister of Foreign Affairs in the Federal Court. Following this court challenge, Boyko was delisted.
Canada has continued to update the Regulations, as well as the Special Economic Measures (Moldova) Regulations, the Special Economic Measures (Belarus) Regulations and the Special Economic Measures (Ukraine) Regulations to sanction individuals and entities and restrict the import and export of certain goods in relation to Russia’s violation of Ukraine’s sovereignty and territorial integrity. Businesses should continually assess their sanctions compliance in this shifting legal landscape.
An unofficial copy of the legislative amendments to the Special Economic Measures (Russia) Regulations that came into effect on December 5, 2023 are available on Global Affairs Canada’s website here.
