On July 14, Canada amended its sanctions measures imposed on Russia to expand the scope of the existing prohibition on services to Russia, by adding two services to Part 1 of Schedule 8 and eight new industries to Part 2 of Schedule 8.
The two categories of services that have been added to Part 1 of Schedule 8 are (i) “Services incidental to manufacturing, except to the manufacture of metal products, machinery and equipment” and (ii) “Services incidental to the manufacture of metal products, machinery and equipment”.
The eight additional industries added to Part 2 of Schedule 8 are as follows:
- manufacture of basic metals
- manufacture of fabricated metal products, except machinery and equipment
- manufacture of computer, electronic and optical products
- manufacture of electrical equipment
- manufacture of machinery and equipment not elsewhere classified
- manufacture of motor vehicles, trailers and semi-trailers
- manufacture of other transport equipment
- land transport and transport via pipelines
Services that are being provided under a contract entered into before July 14, 2022 are not subject to these new prohibitions until 60 days after the day on which these additional prohibitions have come into force. This approach is to allow for a 60-day wind-down period to allow persons in Canada or Canadians outside, with pre-existing contracts, to make the necessary arrangements to conclude those contracts.
Due to ongoing developments in the region, Canada may announce and implement further measures in alignment with its allies in the coming days. We will publish additional articles as measures are announced in an official capacity.
An unofficial copy of the legislative amendments to the Special Economic Measures (Russia) Regulations that came into effect on July 14, 2022 are available on Global Affairs’ website here.