On April 11, 2023, Canada announced additional amendments to the Special Economic Measures (Russia) Regulations (the “Regulations”) in response to individuals and entities “complicit in Russia’s ongoing war against Ukraine”. These amendments list an additional 14 individuals and 34 entities under Schedule 1 of the Regulations and took effect on April 5, 2023.
There are now over 1,600 parties listed under Schedule 1 of the Regulations. Among the newly listed parties are “senior management at Russian companies that provide military services to Russia”, as well as “military technology and logistics companies”.
Generally speaking, designation under Schedule 1 of the Regulations imposes an asset freeze and dealings prohibition against the designated person. Subject to limited exceptions, any person in Canada or any Canadian outside Canada cannot:
- deal in any property, wherever situated, that is owned, held or controlled by or on behalf of a designated person whose name is listed in Schedule 1;
- enter into or facilitate, directly or indirectly, any transaction related to such a dealing;
- provide any financial or other related services in respect of such a dealing;
- make available any goods, wherever situated, to a designated person listed in Schedule 1 or to a person acting on their behalf; or
- provide any financial or related service to, or for the benefit of, a designated person listed in Schedule 1.
Additionally, individuals listed in Part 1.1 of Schedule 1 of the Regulations are also inadmissible to Canada under the Immigration and Refugee Protection Act.
Since February 2022, Canada has continually updated the Regulations, as well as the Special Economic Measures (Belarus) Regulations and the Special Economic Measures (Ukraine) Regulations. 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 entities and any related transactional information to the RCMP. Additionally, certain entities have a continuing duty to determine and disclose certain property held by Schedule 1 entities.
An unofficial copy of the legislative amendments to the Special Economic Measures (Russia) Regulations that came into effect on April 5, 2023 are available on Global Affairs Canada’s website here.