On June 29, 2015, the Government of Canada amended the Special Economic Measures (Ukraine) Regulations (the “Ukraine Regulations”) to impose specific sanctions against the Crimea region of Ukraine, and added a number of persons to the lists of designated persons under Schedule 1 and Schedule 3 of the Special Economic Measures (Russia) Regulations (the “Russia Regulations”). These amendments to the Ukraine and Russia Regulations came into immediate effect on June 29, 2015.
With respect to the Ukraine Regulations, the amendments added the term “Crimea region of Ukraine”, which is defined as “the Autonomous Republic of Crimea and the city of Sevastopol and includes their land areas and territorial sea.” The amendments now prohibit any person in Canada and any Canadian outside Canada from, among other things: (a) making an investment in the Crimea region of Ukraine that involves a dealing in any property located in the Crimea region of Ukraine that is held by or on behalf of the Crimea region of Ukraine or a person therein; (b) importing, purchasing, acquiring, shipping or otherwise dealing in goods, wherever situated, that are exported from the Crimea region of Ukraine; or (c) exporting, selling, supplying, shipping or otherwise dealing in goods, wherever situated, destined for the Crimea region of Ukraine or any person in the Crimea region of Ukraine. Per the new section 4.2 added by the amendments, certain activities that are performed in furtherance of a contract entered into before June 29, 2015 may be exempted from these newly introduced sanctions measures; however, contracts should be carefully reviewed before relying on such exemptions.
Separately, the names of three individuals and ten entities were added to Schedule 1 of the Russia Regulations, which designates persons subject to the most restrictive sanctions under the regulations, and the names of four entities were added to Schedule 3 of the Russia Regulations.
An unofficial copy of the regulations amending the Ukraine Regulations can be found here. An unofficial copy of the regulations amending the Russia Regulations can be found here.
