Regulations Amending the Special Economic Measures (Russia) Regulations: SOR/2024-254

Canada Gazette, Part II, Volume 158, Number 26

Registration
SOR/2024-254 December 9, 2024

SPECIAL ECONOMIC MEASURES ACT

P.C. 2024-1292 December 9, 2024

Whereas the Governor in Council is of the opinion that the actions of the Russian Federation constitute a grave breach of international peace and security that has resulted in a serious international crisis;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Regulations Amending the Special Economic Measures (Russia) Regulations under paragraph 4(1)(a)footnote a and subsections 4(1.1)footnote b, (2)footnote c and (3) of the Special Economic Measures Act footnote d.

Regulations Amending the Special Economic Measures (Russia) Regulations

Amendment

1 Part 1 of Schedule 1 to the Special Economic Measures (Russia) Regulations footnote 1 is amended by adding the following in numerical order:

Application Before Publication

2 For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply according to their terms before they are published in the Canada Gazette.

Coming into Force

3 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Russia’s unprovoked and unjustifiable aggression against Ukraine violates international law, jeopardizes stability in the region and puts countless innocent lives at risk. It also threatens the values and principles that underpin the rules-based international system, including every state’s right to sovereignty and self-determination.

Russian authorities and their local collaborators have been involved in systematic and widespread use of torture against detained Ukrainian prisoners of war and civilians in the temporarily occupied territories of Ukraine.

Background

Situation in Ukraine

On February 24, 2022, Russia initiated a full-scale military invasion of Ukraine, launching attacks on many cities. Since then, Russia has continued to wage a war of aggression and has committed atrocities against Ukrainians. Russia continues to attack civilian targets such as critical infrastructure in Ukraine, resulting in the loss of access to water, electricity, and communications, and violate the principles of the United Nations (UN) Charter.

Experts, including from the Organization for Security and Cooperation in Europe Moscow Mechanism fact-finding missions, the Independent International Commission of Inquiry on Ukraine and the UN Office of the High Commissioner for Human Rights, have concluded that Russia is committing serious human rights violations, war crimes, possible crimes against humanity, and conflict-related sexual violence. As of October 2024, the UN Human Rights Monitoring Mission in Ukraine has confirmed at least 12 162 civilians have been killed and over 26 000 were injured since February 24, 2022. Furthermore, 662 medical facilities and 1 496 educational facilities in Ukraine have been damaged or destroyed by Russia’s military since the invasion.

The UN Independent International Commission of Inquiry on Ukraine has found that Russian authorities have used torture as a war crime against Ukrainian civilians and prisoners of war during the full-scale invasion of Ukraine. The Commission has concluded that torture is widespread and systematic. The use of torture by Russian authorities in all temporarily occupied territories of Ukraine has followed a similar pattern. This includes torture practices in detention centres, coordinated use of personnel from specific services of the Russian Federation (including officials of the Federal Penitentiary Service and the Federal Security Service, as well as of Russian armed forces officers), and the recurrent use of sexual violence as a form of torture in almost all detention centres. These findings were presented at the UN General Assembly in October 2024.

International response

A coalition of countries directly supporting Ukraine includes, but is not limited to, G7 and European countries. This group is working to support Ukraine across several areas, including contributing to energy security, nuclear safety, food security, humanitarian assistance, combatting Russian disinformation, imposing sanctions and economic measures, asset seizure and forfeiture, providing military assistance, ensuring accountability, fostering socio-economic recovery and reconstruction.

Canada’s response

Canada unequivocally condemns Russia’s illegal and egregious actions. Following Russia’s illegal occupation and attempted annexation of Crimea in March 2014, the Government of Canada, in tandem with like-minded countries, enacted sanctions through the regulations under the Special Economic Measures Act (SEMA). These sanctions impose dealings prohibitions (an effective asset freeze) on listed individuals and entities supporting or enabling Russia’s violation of Ukraine’s sovereignty. Any person in Canada and Canadians outside Canada are prohibited from dealing in the property of, entering into transactions with, providing services to, or otherwise making goods available to persons listed under Schedules 1, 2 or 3 of the Special Economic Measures (Russia) Regulations (the Regulations).

Since 2014, in coordination with its partners, Canada has imposed sanctions on more than 3,000 individuals and entities in Russia, Belarus, Ukraine and Moldova. In addition, Canada has implemented targeted restrictions against Russia and Belarus in financial, trade (goods and services), energy and transport sectors. Canada is part of the Oil Price Cap Coalition, the G7 diamond import ban and ongoing efforts to use the proceeds from Russian sovereign assets to help Ukraine.

Canada is steadfast in its commitment to support Ukraine’s sovereignty, territorial integrity, independence, and its efforts toward a just and sustainable peace. In total, Canada has committed over $19.5 billion in financial, military, humanitarian, development, security, stabilization and immigration assistance in response to Russia’s full-scale invasion on February 24, 2022. Canada remains committed to supporting Ukraine’s stability, security, and sovereignty as it resists Russia’s war of aggression.

Further, Canada continues to deploy significant efforts to raise awareness of, and advocate on the issue of, illegally detained and deported Ukrainians, a critical issue dating back to Russia’s invasion of Ukraine in 2014 that has been exacerbated since the launch of Russia’s full-scale war of aggression in 2022. On October 30 and 31, 2024, Canada co-hosted the Ministerial Conference on the Human Dimension of Ukraine’s 10-Point Peace Formula(a formula that respects the country’s sovereignty and territorial integrity, the UN Charter, and international law) in Montréal with the Ukrainian and Norwegian Ministers of Foreign Affairs. At the conference, the ministers announced the Montréal Pledgefootnote 2 — concrete steps to help return prisoners of war, unlawfully detained civilians and deported children, including support as these people reintegrate into their daily lives.

Objective

The objectives of imposing these measures are to

Description

The amendments add nine individuals to Schedule 1 of the Regulations who have been involved in the violation of human rights during Russia’s full-scale invasion of Ukraine, including through the torture of prisoners of war and civilians held in detention centres in temporarily occupied territories.

These persons include Russian officials from the Federal Penitentiary Service, Federal Security Service, and the National Guard of Russia (Rosgvardia). They also include Ukrainian nationals who have collaborated with Russian occupying forces since the invasion. Their involvement in torture against Ukrainian civilians and prisoners of war is well documented.

Any person in Canada or Canadians outside Canada are thereby prohibited from dealing in the property of, entering into transactions with, providing services to, transferring property to, or otherwise making goods available to these listed individuals — unless explicitly authorized by a permit, granted on an exceptional basis, or an exception in the Regulations. These measures will also render listed individuals inadmissible to Canada under the Immigration and Refugee Protection Act. Under the Regulations, listed persons may apply to the Minister of Foreign Affairs to have their name removed from the Schedule. The Minister must decide whether there are reasonable grounds to make a recommendation to the Governor in Council for removal.

Regulatory development

Consultation

Global Affairs Canada regularly engages with relevant stakeholders, including civil society organizations, cultural communities and other like-minded governments, regarding Canada’s approach to sanctions implementation.

With respect to the amendments adding individuals to schedules, public consultation would not be appropriate. Publicizing the names of the persons to be targeted for listing could potentially result in asset flight prior to the coming into force of the amendments.

Modern treaty obligations and Indigenous engagement and consultation

An initial assessment of the geographical scope of the initiative was conducted and did not identify any modern treaty obligations, as the Regulations do not take effect in a modern treaty area.

Instrument choice

Regulations are the sole method to enact sanctions in Canada. No other instrument could be considered.

Regulatory analysis

Benefits and costs

The incremental cost to the Government of Canada to administer and enforce these additional prohibitions is minimal.

Sanctions targeting specific individuals and entities also have less impact on Canadian businesses than traditional broad-based economic sanctions and have limited impact on the citizens of the country of the listed individuals and entities. Based on an initial assessment of available open-source information, it is believed that the individuals listed have no linkages with Canada and therefore do not have significant business dealings that are relevant to the Canadian economy. It is therefore anticipated that there will be no significant impacts on Canadians and Canadian businesses as a result of these amendments.

Canadian banks and financial institutions are required to comply with sanctions. They will do so by adding the newly listed individuals to their existing monitoring systems, which may result in a minor compliance cost.

Small business lens

Analysis under the small business lens concludes that the amendments do not impose any new compliance or administrative burden on small businesses in Canada. The amendments prohibit Canadian businesses from dealing with, providing services to, or otherwise making goods available to listed persons, but do not create obligations related to them. Additionally, Canadian businesses may seek permits under the Regulations, which are granted on an exceptional basis, allowing policy space for exemptions. However, Global Affairs Canada does not anticipate any applications resulting from listing these individuals. Canadian small businesses are also subject to the duty to disclose under the Regulations, which would represent a direct compliance requirement. However, as the newly listed individuals have no known legitimate linkages with Canada, Global Affairs Canada does not anticipate any disclosures resulting from the amendments.

One-for-one rule

The one-for-one rule does not apply, as there is no incremental change in administrative burden on business. The permitting process for businesses meets the definition of “administrative burden” in the Red Tape Reduction Act; however, while permits may be granted under the Regulations, on an exceptional basis, given these individuals have no known business ties to the Canadian economy, and the minimal level of trade with Russia, Global Affairs Canada does not anticipate any permit applications with respect to the amendments.

Regulatory cooperation and alignment

While the amendments are not related to a work plan or commitment under a formal regulatory cooperation forum, they align with actions taken by Canada’s partners and like-minded partners. Sanctions are most effective when they are applied in a coordinated manner and Canada is working to harmonize efforts internally, and with partners, to facilitate a unified front on sanctions.

Canada’s international partners continue to update their sanctions regimes against individuals and entities in Russia and enforce far-reaching financial, trade and investment prohibitions on Russia. Countries and jurisdictions that have sanctioned individuals and entities related to Russia’s gross and systematic violations of human rights include Australia, the European Union, Japan, New Zealand, Switzerland, the United Kingdom and the United States.

Effects on the environment

The amendments are unlikely to result in important environmental effects. In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA), a preliminary scan concluded that an SEEA is not required.

Gender-based analysis plus

The subject of economic sanctions has previously been assessed for effects on gender and diversity. Although intended to facilitate a change in behaviour through economic pressure on individuals and entities in foreign states, sanctions under the SEMA can nevertheless have an unintended impact on certain vulnerable groups and individuals. Rather than affecting Russia as a whole, these targeted sanctions impact individuals believed to be engaged in activities that directly or indirectly support, provide funding for or contribute to a violation of the sovereignty or territorial integrity of Ukraine. Therefore, these sanctions are unlikely to have a significant impact on vulnerable groups as compared to traditional broad-based economic sanctions directed toward a state. In so far as sanctions limit Russia’s ability to wage war, women, children and vulnerable groups are likely to benefit from these measures.

Implementation, compliance and enforcement, and service standards

The amendments come into force on the day they are registered.

Consequential to being listed in the Regulations, and pursuant to the application of paragraph 35.1(b) of the Immigration and Refugee Protection Act, the listed individuals would be inadmissible to Canada.

The names of the listed individuals will be available online for financial institutions to review and will be added to the Consolidated Canadian Autonomous Sanctions List. This will help to facilitate compliance with the Regulations.

The Trade Commissioner Service at Global Affairs Canada, abroad and in Canada, continues to assist clients in understanding Canadian sanctions regulations, and notably the impact of the regulations on any activities in which Canadians may be engaged. Global Affairs Canada is also increasing outreach efforts across Canada — including to engage with businesses, universities, and provincial/territorial governments — to enhance national awareness of and compliance with Canadian sanctions.

Under the SEMA, both Royal Canadian Mounted Police and Canada Border Services Agency officers have the power to enforce sanctions violations through their authorities as defined under the Customs Act, the Excise Act or the Excise Act, 2001, and sections 487 to 490, 491.1 and 491.2 of the Criminal Code.

In accordance with section 8 of the SEMA, every person who knowingly contravenes or fails to comply with the Regulations is liable, upon summary conviction, to a fine of not more than $25,000 or to imprisonment for a term of not more than one year, or to both: or, upon conviction on indictment to imprisonment for a term of not more than five years.

Contact

Sanctions Bureau
Global Affairs Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone (toll-free): 1‑833‑352‑0769
Telephone (local): 343‑203‑3975
Fax: 613‑995‑9085
Email: sanctions@international.gc.ca