CANADA SANCTIONS RUSSIAN MANUFACTURING INDUSTRY

On July 14, 2022, Canada’s latest sanctions against Russia’s industrial manufacturing industry went into effect. Canada had previously announced these sanctions were incoming on July 9, 2022. These sanctions are issued under the Special Economic Measures (Russia) Regulations (“Russia Regulations”).

Canada expanded its existing measures on Russia’s oil, gas and chemical sectors to include industrial manufacturing. Canada’s new sanctions prohibit Canadians and any person in Canada from providing services incidental to Russian manufacturing. Specifically, the sanctions apply to services relating to the manufacturing of basic materials, fabricated metal products, computer electronic and optical products, electrical equipment, machinery equipment, and motor vehicles. The sanctions also prohibit the provision of services in the land and pipeline transport industry. Previously prohibited services under Part 1 of Schedule 8 now also apply to the manufacturing and land and pipeline transport industries.

Importantly, if a Canadian or person in Canada was already providing listed services to the newly listed industries  under a contract that was entered into before July 14, 2022, then a 60-day grace period applies, allowing Canadian businesses to conclude those contracts before September 12, 2022.

Our team will continue to monitor the sanctions related to Russia, providing updates about important developments affecting trade and services.

The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms. They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear and provide advice on compliance in these areas. Where breaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada. We also regularly assist clients with the application for delisting process as well as applications for exemption permits.

Vince DeRose
613.237.8862
vderose@tradeisds.com
Jennifer Radford
613.237.9777
jradford@tradeisds.com
Stephanie Desjardins
613.237.8680
sdesjardins@tradeisds.com
Peter Knowlton
613.237.4742
pknowlton@tradeisds.com

Key Russian Economic Sectors as Potential Target for Upcoming Sanctions by Canada

On July 9, 2022, Canada announced that it intends to further target key Russian sectors in a new round of sanctions against Russia under the Special Economic Measures (Russia) Regulations (“Russia Regulations”).

These new sanctions “will expand existing measures on the oil, gas and chemical sectors to include industrial manufacturing”. Together, these sectors represent more than 50% of Russia’s federal budget revenues. Canada’s new sanctions will “prohibit Canadian services to contribute to the production of goods [in the metals, transport, computer, electronic and electrical, and machinery] sectors”. The news release provides that, “[o]nce the measures are in effect, Canadian businesses will have 60 days to conclude contracts with targeted industries and services”.

Our team will continue to monitor the sanctions related to Russia, providing updates about important developments affecting trade and services.

The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms. They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear and provide advice on compliance in these areas. Where breaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada. We also regularly assist clients with the application for delisting process as well as applications for exemption permits.

Vince DeRose
613.237.8862
vderose@tradeisds.com

Jennifer Radford
613.237.9777
jradford@tradeisds.com

Stephanie Desjardins
613.237.8680
sdesjardins@tradeisds.com

Peter Knowlton
613.237.4742
pknowlton@tradeisds.com

Russian Disinformation Targetted by Canada’s New Sanctions

On July 8, 2022, Canada announced a new round of sanctions against Russia, imposed under the Special Economic Measures Act by way of amendments to the Special Economic Measures (Russia) Regulations (“Russia Regulations”). The primary target of this latest round of sanctions is the Russian disinformation and propaganda campaigns.

The new measures consist of sanctions against fifteen (15) Russian disinformation entities controlled or owned by the Russian government and involved in disinformation efforts. Canada is also sanctioning thirty (30) state-sponsored disinformation and propaganda agents, who Canada considers to have “enabl[ed] and support[ed] Russia’s unprovoked and unjustified invasion of Ukraine”.

In support of Canada’s efforts against Russian disinformation and propaganda, Canada has launched a webpage identifying “a sample of the many lies by the Russian regime about its invasion of Ukraine, along with the truth”. The information provided on that webpage are based on information collected by Canada’s intelligence.

The announcement was also accompanied by a ban on imports of certain gold goods from Russia. Canada’s stated intention is to shut “these products out of formal international markets and further limi[t] Russia’s ability to raise funds to wage war”.

Our team will continue to monitor the sanctions measures related to Russia, providing updates to keep clients informed about important developments affecting trade and services. The lawyers at Tereposky & DeRose have significant experience in the design and implementation of sanctions-related compliance programs, including policies, procedures, employee training, and internal control mechanisms. They also regularly assist both Canadian and international businesses, financial institutions, and individuals with internal investigations when “red flags” appear and provide advice on compliance in these areas. Where breaches have occurred, they have worked closely with their clients in making voluntary disclosures and in engaging with the ensuing investigations conducted by the RCMP and Global Affairs Canada. We also regularly assist clients with the application for delisting process as well as applications for exemption permits.

Vince DeRose
613.237.8862
vderose@tradeisds.com

Jennifer Radford
613.237.9777
jradford@tradeisds.com

Stephanie Desjardins
613.237.8680
sdesjardins@tradeisds.com

Peter Knowlton
613.237.4742
pknowlton@tradeisds.com