Canada Expands Economic Sanctions Against Russia
Since March, 2014, Canada has imposed economic sanctions against Russia pursuant to the Special Economic Measures (Russia) Regulations (“the Regulations”).
The Regulations impose an asset freeze and dealings prohibition on designated persons, which include both individuals and entities.
The Regulations also impose restrictions on the financial sector. Specifically, they prohibit dealings in certain types of debt and equity financing transactions.
The Regulations also prohibit the export, sale, supply or shipping of certain goods to Russia for use in offshore oil, shale oil or Arctic oil exploration and production. This includes a ban on the provision of any financial, technical or other services related to the goods subject to this prohibition.
Between March 17, 2014 and March 18, 2016, the Regulations were expanded 13 times. The Regulations then remained untouched for almost 3 years. However, on March 15, 2019, Canada added 25 individuals and 14 entities as designated persons. The result is that Canada now imposes an asset freeze and dealings prohibition on 118 individuals and 68 entities.
The imposition of economic sanctions does not mean that Canadians must cease business with Russia. On-going business is permitted so long as it does not involve, directly or indirectly, a designated person. The expansion of economic sanctions does, however, impose on Canadians conducting business with Russia further obligations to scrutinize ongoing business transactions to ensure compliance.
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.
If you would like to discuss any aspect of the Canadian sanctions regime, contact Vince DeRose or Jennifer Radford at: