On March 24, 2022, Canada introduced further sanctions against Russia, introducing new categories of “Restricted Goods” and “Restricted Technologies” that any person in Canada or any Canadian outside of Canada is prohibited from exporting, selling, supplying or shipping to Russia or to any person in Russia. The amendment also provides that any person in Canada or any Canadian in Canada is also prohibited from knowingly doing anything that is intended to cause, facilitate or assist in the export, sale, supply or shipment of such goods.

The goods and technology subject to this new prohibition are wide in scope. They include a range of goods and technology in the areas of electronics, computers, telecommunications, sensors and lasers, navigation and avionics, marine, aerospace and transportation. The specifics of these prohibited goods and technologies are set out in the “Restricted Goods and Technologies List” which can be reviewed here.

The amended regulations do provide some exemptions including goods temporarily exported for use by a representative of the media from Canada or from a “partner country”, goods for use in support of international nuclear safeguards verifications, goods for use in relation to the activities of the International Space Station, software updates for end-users that are civilian entities that are owned, held or controlled by a Canadian, civil aircraft registered in a foreign state that are departing from Canada after a temporary sojourn in Canada or civil aircraft registered in Canada departing for a temporary sojourn abroad, and consumer communication devices that are generally available to the public and designed to be installed by the user without further substantial support. A complete list of the exemptions can be reviewed here.

Our team will continue to monitor the sanctions measures related to Russia, Belarus and Ukraine, providing updates that may impact Canadian business operations. The lawyers at Tereposky & DeRose LLP have significant experience in assisting clients with navigating the parameters of sanctions as well as 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.