On March 1, 2024, the Minister of Foreign Affairs announced further import restrictions on diamonds and diamond-jewelry-related products from Russia. The amendments to the Special Economic Measures (Russia) Regulations (the “Regulations”) prohibit any person in Canada and any Canadian outside of Canada from purchasing, importing, or acquiring certain diamonds mined or produced in Russia that are exported, processed and/or polished in a third country. The Regulations entered into force on February 29, 2024.
The amendments add unsorted and industrial diamonds weighing one carat and above, synthetic or reconstructed diamonds and other jewelry-pieces incorporating diamonds to Schedule 12 of the Regulations. These amendments expand upon Canada’s Russian diamond import ban announced in December 2023. To learn more about the December 2023 import ban, read our blog post here. This expanded import ban targeting indirect imports of Russian diamonds 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 the war in Ukraine. For more information on the extensive Russian sanctions enacted by Canada and its international partners following the two-year anniversary of Russia’s invasion of Ukraine, read our blog post here.
Additionally, on March 3, 2024, the Minister of Foreign Affairs announced amendments to the Regulations sanctioning six Russian individuals linked with the death of Alexei Navalny, Russia’s opposition leader. These sanctions also took effect on February 29, 2024.
The six individuals listed under Schedule 1 of the Regulations are senior officials and high-ranking employees of Russia’s prosecution, judicial and correctional services alleged to be involved in violating Navalny’s human rights and ultimate death. Navalny had been imprisoned since early 2021 following his arrest at Moscow’s Sheremetyevo Airport.
Schedule 1 of the Regulations imposes a dealings prohibition against the individuals and entities listed, effectively freezing any assets they hold in Canada. Individuals listed are also rendered inadmissible to Canada under the Immigration and Refugee Protection Act. For more information on the dealings prohibition, read our November 2023 blog post on Russian sanctions here.
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 entered into force on February 29, 2024 are available on Global Affairs Canada’s website here (diamond import ban) and here (individuals associated with Navalny’s death).
