April 4, 2022
Canada expands sanctions on Russia, announces prohibitions on exports of goods and technology
Following the 10 March 2022 announcement of additional sanctions under the Special Economic Measures (Russia) Regulations (Regulations),1 from 14 March 2022 to 24 March 2022, Canada further amended the Regulations by adding 175 individuals and prohibiting the export of certain goods and technologies described in the Restricted Goods and Technologies List (Restricted List).2
New sanctioned individuals
On 14 March 2022, Canada amended the Regulations to add 15 senior officials of the Government of Russia, who are now subject to a broad dealings ban.3
On 23 March 2022, Canada further amended the Regulations to add 160 members of the Russian Federation Council, who are now subject to a broad dealings ban. As a result, all members of the Russian Federation Council are now sanctioned by Canada.4
Export prohibitions on certain goods and technologies
On 24 March 2022, Canada once more amended the Regulations to prohibit the export to Russia of goods and technologies described in the Restricted List. The Restricted List includes a broad range of items in the areas of electronics, computers, telecommunications, sensors and lasers, navigation and avionics, marine, aerospace and transportation.
Per subsection 3.6(1) of the amended Regulations, any person in Canada and any Canadian outside Canada is prohibited from exporting, selling, supplying or shipping any good, wherever situated, to Russia or to any person in Russia if the good is described in the Restricted List.
In addition, any person in Canada and any Canadian outside Canada is prohibited from providing to Russia or to any person in Russia any technology that is described in the Restricted List.5 Per subsection 3.6(5) of the Regulations as amended by SOR/2022-067, the term “technology” means technical data and any form of technical assistance, such as providing instruction, training, consulting or technical advice services or transferring know-how or technical data.
The following goods are exempt from the prohibitions of subsection 3.6.(1) of the amended Regulations:6
The prohibition on technology does not apply if the technology is in relation to goods not covered by subsection 3.6(1), as listed above.7
It is highly recommended that businesses conduct a thorough review of the Restricted List and confirm whether or not their goods or technology-related sales and services meet the descriptions therein. As the prohibitions cover selling, supplying and shipping in addition to exporting activities, monitoring of the entire supply chain is necessary to minimize the risk of inadvertent non-compliance with the sanctions.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada)