At the 2026 G7 Leaders’ Summit, Prime Minister Carney announced a further expansion of its sanctions regime under the Special Economic Measures (Russia) Regulations (Regulations), effective June 12, 2026. The measures form part of Canada’s continuing effort to constrain Russia’s military operations and to condemn recent attacks on Kyiv. The amendments list new individuals, entities and vessels in Russia’s shadow fleet and repeal obligations held by the Minister of Foreign Affairs in relation to delisting applications.
Expansion of Designations: Individuals, Entities, and Shadow Fleet Actors
The amendments list seven individuals to Part 1 of Schedule 1 and over 30 entities in Part 2 of Schedule 1, targeting Russia’s energy revenues, defense-industrial actors, disinformation actors, and shipping participants in Russia’s shadow fleet. Designations expand beyond Russian entities and include, a Vietnamese ship owner and manager (Hung Phat Maritime Trading) which was previously sanctioned by the EU, a New Zealand based insurance company (Maritime Mutual Insurance Association (NZ) Limited) which was previously sanctioned by the UK, and UAE based ship managers (Novashipmanagement and Citrine Marine) which were previously sanctioned by the EU.
The Regulations impose a dealings prohibition against the individuals listed in Schedule 1, effectively freezing any assets they hold in Canada. Specifically, the Regulations prohibit any person in Canada and any Canadian outside Canada from:
- dealing in any property, wherever situated, that is owned — or that is held or controlled, directly or indirectly — by a designated person;
- entering into or facilitating any transaction related to a dealing in a designated person’s property;
- providing any financial or related services in respect of a dealing in a designated person’s property;
- making available any goods, wherever situated, to a listed person or to a person acting on behalf of a designated person;
- transferring or providing any property other than goods to a listed person or to a person outside Canada who is not Canadian for the benefit of a designated person; or
- providing any financial or related services to or for the benefit of a designated person.
Individuals listed are also rendered inadmissible to Canada under the Immigration and Refugee Protection Act.
The amendments also continue to target Russia’s shadow fleet. An additional 120 vessels are listed, prohibiting any person in Canada and any Canadian outside Canada to provide any services related to these vessels.
Government Repeals Minister’s delisting obligations and export prohibition
Among a number of administrative amendments updating schedules and typographical errors, the amendments repeal the statutory obligations of the Minister of Foreign Affairs to: (1) make decisions on delisting applications within 90 days of an application being filed; and (2) provide notice without delay to an applicant of the decision taken.
The amendments also repeal the prohibition on the export, sale, supply of shipment of parts for pneumatic or hydraulic power engines and motors, and parts for reaction engines other than turbo-jets (HS Code 8412.90) to Russia or to any person in Russia.
Looking Ahead
Businesses should continually assess their sanctions compliance in this shifting legal landscape. Regulations enacted under the Special Economic Measures Act obligate persons in Canada and Canadian citizens to disclose certain property held by Schedule 1 parties and any related transactional information to the RCMP. Additionally, certain entities have a continuing duty to determine and disclose certain property of Schedule 1 parties.
An unofficial copy of the legislative amendments to the Regulations that came into effect on June 12, 2026, are available on Global Affairs Canada’s website here.
