The Special Economic Measures

On August 6, 2014, the Canadian Government announced additional economic sanctions and travel bans against 19 Russian and Ukrainian individuals, and economic sanctions against 22 Russian and Ukrainian groups and economic entities. The sanctions were accompanied by a Statement by the Prime Minister of Canada, in which he stated that the sanctions, imposed  in close coordination with partners in the United States and Europe, are intended to increase pressure on those viewed responsible for the crisis in Ukraine.

The following individuals have been added to the list of Russian designated persons:

  1. Sergei Orestovoch BESEDA
  2.  Aleksandr Vasilievich BORTNIKOV
  3. Mikhail Vladimirovich DEGTYAREV
  4.  Mikhail Efimovich FRADKOV
  5. Boris Vyacheslavovich GRYZLOV
  6. Ramzan Akhmadovitch KADYROV
  7. Vladimir Georgyevich KULISHOV
  8. Rashid Gumarovich NURGALIEV
  9. Nikolai Platonovich PATRUSHEV
  11. Alexander Nikolayevich TKACHYOV
  12. Valerii Yuriovych TRAVKIN
  13. Nikolay Terentievich SHAMALOV
  14. Konstantin Valerevich MALOFEEV

The list of Russian designated entities has been expanded to include:

  1.  United Shipbuilding Corporation
  2. Dobrolet (also known as Dobrolyot)
  3. Russian National Commercial Bank

The following individuals have been added to the list of Ukrainian designated persons:

  1. Pavel Yurevich GUBAREV
  2. Ekaterina Yurevna GUBAREVA
  3. Oksana TCHIGRINA
  4. Boris LITVINOV
  5. Sergey ABISOV

The new Ukrainian designated entities are:

  1. Federal State of Novorossiya
  2. International Union of Public Associations “Great Don Army”
  3. Sobol
  4. Luhansk Guard
  5. Army of the Southeast
  6. Donbass People’s Militia
  7. Vostok battalion
  8. Kerch ferry
  9. Sevastopol commercial seaport
  10. Kerch commercial seaport
  11. Universal-Avia
  12. Resort “Nizhnyaya Oreanda”
  13. Azov distillery plant
  14. National Association of producers “Massandra”
  15. Magarach of the national institute of wine
  16. Factory of sparkling wine Novy Svet

The Russian and Ukrainian Regulations prohibit persons in Canada and Canadians abroad from:

  • Dealing in any property held by or on behalf of a designated person or entity, or facilitating or providing financial or other related services in respect of such a dealing;
  • Making any goods available to a designated person or entity; and,
  • Providing any financial or related services to or for the benefit of a designated person or entity.

“Causing, assisting, or promoting” these prohibited activities is also not permitted.

The Prime Minister indicated in his Statement announcing the additional sanctions that   the Canadian Government is also committed to, in parallel with Canada’s allies, imposing the necessary regulations to enact export restrictions on technologies used in Russian’s oil exploration and extraction sector. The August 6, 2014 further expansion of the prohibited persons and entities lists, coupled with this signal that more measures are to come, underscores that continued vigilance by those conducting business in Russia, or with Russian business partners outside of Russia, will remain a necessity.