The Special Economic Measures

On March 17, 2014, the Canadian Government announced that it intended to impose economic sanctions against Russia. That same day, the Special EconomicMeasures (Russia) Regulations (the “Russian Regulations”) came into force.

The Russian Regulations impose an asset freeze on  a list of designated persons and entities. Canada has stated that it believes there are reasonable grounds to believe that they are closely connected with the Government of Russia, or that they are individuals or entities engaged in activity that may contribute to the deployment of Russian armed forces to Crimea.

On April 28, 2014, the list of designated persons was expanded from 32 to 41 individuals. The updated list of designated persons is:

  1. Sergey Yur’yevich GLAZ’YEV
  2. Andrei KLISHAS
  3. Valentina Ivanovra MATVIYENKO
  4. Yelena Borisovna MIZULINA
  5. Dmitry Olegovich ROGOZIN
  6. Leonid Eduardovich SLUTSKIY
  7. Vladislav Yur’yevich SURKOV
  8. Viktor Alekseevich OZEROV
  9. Vladimir Michailovich DZHABAROV
  10. Nikolai Ivanovich RYZHKOV
  11. Evgeni Viktorovich BUSHMIN
  12. Aleksandr Borisovich TOTOONOV
  13. Oleg Evgenevich PANTELEEV
  14. Sergei Mikhailovich MIRONOV
  15. Sergei Vladimirovich ZHELEZNYAK
  16. Aleksandr Viktorovich VITKO
  17. Anatoliy Alekseevich SIDOROV
  18. Aleksandr GALKIN
  19. Arkadii Viktorovich BAHKIN
  20. Andrei Alexandrovich FURSENKO
  21. Alexei GROMOV
  22. Vitalii Nikitich IGNATENKO
  23. Sergei IVANOV
  24. Victor Petrovich IVANOV
  25. Vladimir Igorevich KOHZIN
  26. Yuri Valentinovich KOVALCHUK
  27. Mikhail Vitalevich MARGELOV
  28. Sergey Yevgenyevich NARYSHKIN
  29. Vladimir PLIGIN
  30. Igor Dmitrievich SERGUN
  31. Gennady TIMCHENKO
  32. Yury Viktorovich USHAKOV
  33. Vyaecheslav VOLODIN
  34. Dmitry KOZAK
  35. Aleksey PUSHKOV
  36. Alexander Mikhailovich BABAKOV
  37. Oleg Evgenyevich BELAVENTSEV
  38. Evgeniy Alexsevevich MOROV
  39. Vladimir Volfovich ZHIRINOVSKY
  40. Arkady ROTENBERG
  41. Boris ROTENBERG

On May 4, 2014 the list of designated entities was expanded from 3 to 19. The 19 prohibitedentities are now:

  1. Bank Rossiya
  2. ExpoBank
  3. RosEnergoBank
  4. Aquanika
  5. Avia Group LLC
  6. Avia Group Nord LLC
  7. CJSC Zest
  8. InvestCapitalBank
  9. JSB Sobinbank
  10. Sakhatrans LLC
  11. SMP Bank
  12. Stroygazmontazh
  13. Stroytransgaz Group
  14. Stroytransgaz Holding
  15. Stroytransgaz LLC
  16. Stroytransgaz OJSC
  17. Stroytransgaz-M LLC
  18. The Limited Liability Company Investment Company Abros
  19. Volga Group

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

  1. 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;
  2. Making any goods available to a designated person or entity; and,
  3. 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 further expansion of the list of designated persons and designated entities highlights how these economic sanctions are rapidly evolving and that ongoing vigilance with respect to developments is the prudent course for those conducting business in Russia, or with Russian business partners outside of Russia.