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The latest developments on Canada’s sanctions against Russia | Stikeman Elliott LLP

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In this article, we take a look at the latest developments related to sanctions related to the invasion of Ukraine. These restrictions are in addition to those already imposed on Russia, Belarus and Ukraine under the Special Economic Measures Act (“SEMA”) as described in our blog posts from February 25, 3rd of March, March 4, March 15, March 21st, and April 7, 2022, .

As noted below, new developments include:

  • More Russians and Ukrainians have become Designated Persons.
  • New import and export bans on luxury goods have been imposed. There are two lists and the export list in particular is very broad.
  • A new ban on the export of materials with potential defense applications has been imposed. This list is very broad.

More Russians and Ukrainians designated

Additional Russian and Ukrainian persons have been designated as follows:

  • 14 Russian people were designated on April 19.
  • 203 Ukrainians were nominated on April 26, apparently for their alliance with Russia.
  • 21 Russian people were designated on May 13.
  • 19 Russian individuals and 5 Russian entities were designated on May 6.
  • 14 Russian people were designated on May 18.

Ban on exporting luxury goods

On May 18, the SEMA Russia regulations have been changed to include a ban on the export, sale, supply or shipment of any scheduled luxury goods to Russia or to any person in Russia. A wide range of products are subject to the export ban, including certain specified alcoholic beverages, tobacco products, perfumes, cosmetics, plastics, clothing, decorative products, luggage and handbags. hand, furs, silk, carpets, textiles, blankets, tents, sails, life jackets, footwear, headgear, tableware and cooking utensils, ceramic household wares such as sanitary ware, glassware, beads, diamonds and other precious stones, silver, gold, jewellery, internal combustion engines, including outboard motors, hydraulic motors, laptop computers, passenger vehicles for traveling on snow, golf carts, passenger vehicles, motorcycles, wrist and pocket watches, grand pianos, artist’s and cosmetic brushes, pens, paintings and other works of art, postage stamps, biological articles and collections, n umismatics and archeology and antiquities.

The descriptions of the products are technical and it is advisable to refer to the regulations to determine whether a particular product is subject to this prohibition.

Ban on importing luxury goods

On May 18, the SEMA Russia regulations have been changed include a ban on the importation, purchase or acquisition of any scheduled luxury goods from Russia or from anyone in Russia. A wide range of products are subject to the export ban, including, for example, certain fish, shellfish, caviar, alcoholic beverages and specified diamonds.

The descriptions of the products are technical and it is advisable to refer to the regulations to determine whether a particular product is subject to this prohibition.

Goods for crafting weapons

On May 18, the SEMA Russia regulations have been changed to include a prohibition on the export, sale, supply or shipment of any intended goods to Russia or to any person in Russia. Some of the goods specified are related to the manufacture of weapons, but others are not. This ban is in addition to restrictions on various military, dual-use and other goods and technology under the Export and Import Permits Act. Examples of goods subject to this new SEMA ban include certain tungsten, boron, tellurium, tire materials, lubricants, catalysts, aluminum, tantalum, bismuth, titanium, rhenium, niobium, diesel engines, pumps, air conditioners, cranes, carts lifts, industrial robots, bulldozers, front end loaders, 360 degree rotating structure machines, pile drivers, rock cutters, tunnel boring machines, drills, tamping machines, concrete mixers, ball bearings, electric machines, tractors, transport vehicles, derricks, tanks , drones, airplanes, helicopters, spacecraft, ships, cameras, projectors, medical and surgical instruments, oxygen therapy devices, X-ray equipment, liquid and gas measuring devices, other measuring instruments, thermostats and medical furniture and surgery such as operating tables.

The descriptions of the products are technical and it is advisable to refer to the regulations to determine whether a particular product is subject to this prohibition.

Conclusion

Canada continues to intensify its sanctions response to Russia’s invasion of Ukraine. The restrictions as a whole clearly have an impact on Canadian businesses. It is important for Canadian businesses to monitor the evolving situation and determine whether their business is complying with any new restrictions that may be imposed.