Regulations Amending the Special Economic Measures (Russia) Regulations: SOR/2023-33
Canada Gazette, Part II, Volume 157, Number 6
SOR/2023-33 February 23, 2023
SPECIAL ECONOMIC MEASURES ACT
P.C. 2023-177 February 22, 2023
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 subsections 4(1)footnote a, (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
1 (1) Item 1074 of Part 1 of Schedule 1 to the Special Economic Measures (Russia) Regulations footnote 1 is replaced by the following:
- 1074 Mikhail Victorovich PETROV
(2) Part 1 of Schedule 1 to the Regulations is amended by adding the following in numerical order:
- 1118 Yury Ivanovich BORISOV (born on December 31, 1956)
- 1119 Andrei Removich BELOUSOV (born in 1959)
- 1120 Viktoria Valeriyevna ABRAMCHENKO (born in 1975)
- 1121 Dmitry Nikolayevich CHERNYSHENKO (born on September 20, 1968)
- 1122 Tatyana Alekseyevna GOLIKOVA (born on February 9, 1966)
- 1123 Viktor Borisovich KHRISTENKO (born on August 28, 1957)
- 1124 Vladimir Viktorovich KHRISTENKO (born on August 6, 1981)
- 1125 Marat Shakirzyanovich KHUSNULLIN (born on August 9, 1966)
- 1126 Nadezhda Sergeevna KIRIYENKO (born in 2002)
- 1127 Maria Vladislavovna KIRIYENKO (born in 1962)
- 1128 Lyubov Sergeevna KIRIYENKO (born on March 23, 1990)
- 1129 Maxim Stanislavovich ORESHKIN (born on July 21, 1982)
- 1130 Igor Yurievich BABUSHKIN (born on April 5, 1970)
- 1131 Mikhail Viktorovich BABICH (born on May 28, 1969)
- 1132 Alexei Logvinovich OVERCHUK (born on December 9, 1964)
- 1133 Margarita Arvitovna LYANGE (born on September 11, 1966)
- 1134 Igor Anatolyevich KIRILLOV (born on July 13, 1970)
- 1135 Alexander Leonidovich LINETS (born on January 11, 1963)
- 1136 Larisa Igorevna BRYCHYOVA (born on May 26, 1957)
- 1137 Andrey Nikolayevich KLEPACH (born on March 4, 1959)
- 1138 Larisa Vyacheslavovna KALANDA (born on May 18, 1964)
- 1139 Vladimir Alexandrovich KALANDA (born on April 16, 1960)
- 1140 Valery Dmitrievich ZORKIN (born on February 18, 1943)
- 1141 Ilya Dmitrievich MEDVEDEV (born on August 3, 1995)
- 1142 Andrey Igorevich MELNICHENKO (born on March 8, 1972)
- 1143 Aleksandra MELNICHENKO (born on April 21, 1977)
- 1144 God Semenovich NISANOV (born on April 24, 1972)
- 1145 Tabarik Ramzanovna KADYROVA (born on July 13, 2004)
- 1146 Veronika Valerievna VLASOVA (born on November 2, 1966)
- 1147 Evgeny Evgenievich MARCHENKO (born on July 17, 1972)
- 1148 Alexey Yurevich AVDEEV (born on May 17, 1967)
- 1149 Oksana Genrikhovna DMITRIEVA (born in 1958)
- 1150 Svetlana Vladimirovna MEDVEDEVA (born on March 15, 1965)
- 1151 Rustam Usmanovich MURADOV (born on March 21, 1973)
- 1152 Vitaly Gennadyevich SAVELYEV (born on January 18, 1954)
- 1153 Umar SUGAIPOV (born on April 17, 1966)
- 1154 Irek Envarovich FAIZULLIN (born on December 2, 1962)
- 1155 Otary Ionovich ARSHBA (born on April 15, 1955)
- 1156 Larisa Nikolaevna BURANOVA (born on April 3, 1969)
- 1157 Artur Nikolaevich CHILINGAROV (born on September 25, 1939)
- 1158 Vyacheslav Anatolievich DAMDINTSURUNOV (born on September 21, 1977)
- 1159 Alexey Vasilievich GORDEYEV (born on February 28, 1955)
- 1160 Vladimir Vladimirovich GUTENEV (born on March 27, 1966)
- 1161 Sholban Valerievich KARA-OOL (born on July 18, 1966)
- 1162 Raisa Vasilievna KARMAZINA (born on January 9, 1951)
- 1163 Artem Alexandrovich KAVINOV (born on September 3, 1969)
- 1164 Olga Mikhailovna KAZAKOVA (born on May 30, 1968)
- 1165 Gleb Yakovlevich KHOR (born on April 8, 1963)
- 1166 Dmitry Anatolievich KHUBEZOV (born on December 20, 1971)
- 1167 Artem Yurievich KIRYANOV (born on January 12, 1977)
- 1168 Dmitry Nikolaevich KOBYLKIN (born on July 7, 1971)
- 1169 Lev Igorevich KOVPAK (born on October 23, 1978)
- 1170 Andrey Leonidovich KRASOV (born on January 27, 1967)
- 1171 Rizvan Daniyalovich KURBANOV (born on January 3, 1961)
- 1172 Eduard Anatolievich KUZNETSOV (born on August 6, 1967)
- 1173 Anna Yurievna KUZNETSOVA (born on January 3, 1982)
- 1174 Tatiana Petrovna LARIONOVA (born on July 2, 1955)
- 1175 Andrey Mikhailovich MAKAROV (born on July 22, 1954)
- 1176 Oleg Anatolievich MATVEICHEV (born on February 1, 1970)
- 1177 Artem Pavlovich METELEV (born on August 11, 1993)
- 1178 Oleg Victorovich MOROZOV (born on November 5, 1953)
- 1179 Evgeny Sergeyevich MOSKVICHEV (born on September 28, 1957)
- 1180 Zelimkhan Alikoevich MUTSOEV (born on October 13, 1959)
- 1181 Victoria Victorovna NIKOLAEVA (born on November 21, 1962)
- 1182 Marat Abdulhaevich NURIEV (born on May 14, 1966)
- 1183 Marina Eduardovna ORGEYEVA (born on September 21, 1959)
- 1184 Vladimir Victorovich PAVLOV (born on June 1, 1976)
- 1185 Alexander Petrovich PETROV (born on May 21, 1958)
- 1186 Victor Vitalievich PINSKY (born on February 6, 1964)
- 1187 Vasily Ivanovich PISKAREV (born on November 8, 1963)
- 1188 Alexander Alekseevich POLYAKOV (born on January 31, 1969)
- 1189 Svetlana Victorovna RAZVOROTNEVA (born on March 25, 1968)
- 1190 Evgeny Vasilievich REVENKO (born on May 22, 1972)
- 1191 Dmitry Vadimovich SABLIN (born on September 5, 1968)
- 1192 Alexander Mikhailovich SHOLOKHOV (born on January 25, 1962)
- 1193 Dmitry Stanislavovich SKRIVANOV (born on August 15, 1971)
- 1194 Ivan Alexandrovich SOLODOVNIKOV (born on April 9, 1985)
- 1195 Tatiana Vasilievna SOLOMATINA (born on April 21, 1956)
- 1196 Yuri Arkadievich STANKEVICH (born on July 24, 1976)
- 1197 Alexander Mikhailovich STRELYUKHIN (born on July 4, 1958)
- 1198 Valentina Vladimirovna TERESHKOVA (born on March 6, 1937)
- 1199 Olga Victorovna TIMOFEYEVA (born on August 19, 1977)
- 1200 Alexey Nikolaevich TKACHEV (born on March 1, 1967)
- 1201 Alexander Romanovich TOLMACHEV (born on April 7, 1993)
- 1202 Maxim Anatolievich TOPILIN (born on April 19, 1967)
- 1203 Vladislav Alexandrovich TRETIAK (born on April 25, 1962)
- 1204 Saygidpasha Darbishevich UMAKHANOV (born on April 3, 1962)
- 1205 Dzhasharbek Borisovich UZDENOV (born on January 25, 1967)
- 1206 Alexey Anatolievich VOLOTSKOV (born on July 5, 1981)
- 1207 Elena Andreyevna VTORYGINA (born on August 17, 1957)
- 1208 Dmitry Fedorovich VYATKIN (born on May 21, 1974)
- 1209 Elena Alexandrovna YAMPOLSKAYA (born on June 20, 1971)
- 1210 Irina Anatolievna YAROVAYA (born on October 17, 1966)
- 1211 Konstantin Fedorovich ZATULIN (born on September 7, 1958)
- 1212 Pavel Nikolaevich ZAVALNY (born on August 11, 1961)
- 1213 Victor Mikhailovich ZAVARZIN (born on November 28, 1948)
- 1214 Alexander Dmitrievich ZHUKOV (born on June 1, 1956)
- 1215 Olga Nikolaevna ALIMOVA (born on April 10, 1953)
- 1216 Mikhail Nikolaevich BERULAVA (born on August 3, 1950)
- 1217 Robert Ivanovich KOCHIEV (born on March 16, 1966)
- 1218 Oleg Alexeyevich MIKHAILOV (born on January 6, 1987)
- 1219 Svetlana Evgenievna SAVITSKAYA (born on August 8, 1948)
- 1220 Alexey Vasilievich CHEPA (born on November 22, 1955)
- 1221 Elena Grigorievna DRAPEKO (born on October 29, 1948)
- 1222 Anatoly Nikolaevich GRESHNEVIKOV (born on August 29, 1956)
- 1223 Nikolay Vladimirovich NOVICHKOV (born on December 24, 1974)
- 1224 Rifat Gabdulkhakovich SHAYKHUTDINOV (born on December 23, 1963)
- 1225 Georgy Konstantinovich ARAPOV (born on September 11, 1999)
- 1226 Sardana Vladimirovna AVKSENTIEVA (born on July 2, 1970)
- 1227 Roza Basirovna CHEMERIS (born on June 11, 1978)
- 1228 Vladislav Andreyevich DAVANKOV (born on February 25, 1984)
- 1229 Alexander Vyacheslavovich DEMIN (born on September 23, 1988)
- 1230 Ksenia Alexandrovna GORYACHEVA (born on May 16, 1996)
- 1231 Maxim Alexeyevich GULIN (born on May 16, 1997)
- 1232 Amir Makhsudovich KHAMITOV (born on February 4, 1975)
- 1233 Oleg Yurievich LEONOV (born on September 10, 1970)
- 1234 Vladimir Vladimirovich PLYAKIN (born on September 19, 1981)
- 1235 Grigory Vladimirovich SHILKIN (born on October 20, 1976)
- 1236 Sangadzhi Andreyevich TARBAEV (born on April 15, 1982)
- 1237 Alla Viktorovna POLYAKOVA (born on November 26, 1970)
- 1238 Anton Olegovich TKACHEV (born on March 31, 1994)
- 1239 Yury Anatolyevich CHIKHANCHIN (born on June 17, 1951)
2 Part 2 of Schedule 1 to the Regulations is amended by adding the following in numerical order:
- 330 Federal Security Service of the Russian Federation
- 331 The Main Directorate of the General Staff of the Armed Forces of the Russian Federation
- 332 United Russia
- 333 The Chief Directorate for Special Programmes of the Russian President
- 334 The Federal Guard Service
- 335 Operating Organisation of the Zaporizhzhia NPP
- 336 Rosneftegaz
- 337 The State Duma
- 338 The Federation Council
- 339 Research and Production Corporation Uralvagonzavod JSC
- 340 TRV Auto Limited Liability Company
- 341 Zhukovskiy Central Aerohydrodynamics Institute (TsAGI)
- 342 Federal Financial Monitoring Service of the Russian Federation
Application Before Publication
3 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
4 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.)
In Russia, parliamentarians and officials, their family members, the oligarchs, and the businesses that fund them continue to do the bidding of President Putin. They vote and act in support of Russia’s ongoing violation of Ukraine’s sovereignty and territorial integrity, deliberately undermining international peace and security.
Following Russia’s illegal occupation and attempted annexation of Crimea in March 2014, the Canadian government, in tandem with partners and allies, enacted sanctions through the Special Economic Measures (Russia) Regulations (the Regulations) under the Special Economic Measures Act (SEMA). The Regulations impose dealings prohibitions (an effective asset freeze) on designated individuals and entities in Russia and Ukraine supporting or enabling Russia’s violation of Ukraine’s sovereignty. Any person in Canada and Canadians outside Canada are thereby prohibited from dealing in the property of, entering into transactions with, providing services to, or otherwise making goods available to listed persons.
On February 24, 2022, Russian President Putin announced a “special military operation” as Russian forces launched a full-scale invasion of Ukraine from Russian and Belarusian territory. The invasion has become a grinding war of attrition that sees little prospect of a quick victory for either side, and both continue to incur heavy losses. The Russian military has committed horrific atrocities against civilians, including in Izium, Bucha, Kharkiv and Mariupol. Experts, including the Organization for Security and Cooperation in Europe’s (OSCE) Moscow Mechanism fact-finding missions, the Independent International Commission of Inquiry on Ukraine, and the United Nations (UN) Office of the High Commissioner for Human Rights (OHCHR), have concluded that Russia is committing serious human rights violations, war crimes, possible crimes against humanity, and conflict-related sexual violence. These studies have linked Russian external aggression with systematic repression and human rights abuses domestically. According to Ukraine’s State Emergency Department, 30% of Ukrainian territory (approximately the size of Austria) is mined. President Putin’s military invasion has been paired with significant malicious cyber operations and disinformation campaigns that falsely portray the West as the aggressor and claim Ukraine is developing chemical, biological, radiological and/or nuclear weapons with support from the North Atlantic Treaty Organization (NATO). The deterioration of Russia’s relations with Ukraine has paralleled the worsening of its relations with the United States (U.S.) and NATO, which has led to heightened tensions.
The coalition of countries supporting Ukraine includes, but is not limited to, G7 and European countries and some of Ukraine’s neighbours. This group is working to support Ukraine across a number of areas, including energy security, nuclear safety, food security, humanitarian assistance, combatting Russian disinformation, sanctions and economic measures, asset seizure and forfeiture, military assistance, accountability, recovery and reconstruction. Canada and G7 countries are engaged in intense diplomacy with the broader international community to encourage support for Ukraine and counter false Russian narratives. Key votes in multilateral forums have effectively isolated Russia, including resolutions in the UN General Assembly condemning Russian aggression against Ukraine (March 2022), deploring the humanitarian consequences of Russian aggression against Ukraine (March 2022), suspending Russian membership in the UN Human Rights Council (April 2022) and condemning Russia’s illegal annexation of Ukrainian territories (October 2022). Many developing countries have refrained from openly criticizing Russia or imposing penalties due to geopolitical considerations, commercial incentives, or simply fear of retaliation, with some also arguing the conflict is less of a priority for their regions. Russia continues to use its position as a permanent member of the UN Security Council (UNSC) to block UNSC action on its war on Ukraine and its corrosive disinformation policies.
Since February 2022, Canada has committed over $5 billion in assistance to Ukraine. This includes military aid, cyber defence and training to Ukrainian troops in the United Kingdom (U.K.) and Poland under the aegis of Operation UNIFIER. Economic resilience support includes new loan resources, a loan guarantee, and Ukraine Sovereignty Bonds. Canada is helping Ukraine repair its energy infrastructure and has temporarily removed trade tariffs on Ukrainian imports. Canada has also committed development and humanitarian assistance, and is countering disinformation through the G7 Rapid Response Mechanism. Canada is also providing security and stabilization programming, including support for civil rights organizations and human rights defenders. Canada announced two new immigration streams for Ukrainians coming to Canada: the temporary Canada-Ukraine Authorization for Emergency Travel and a special permanent residence stream for family reunification.
In coordination with its allies and partners, Canada has imposed sanctions on more than 1 600 individuals and entities in Russia, Belarus and Ukraine who are complicit in the violation of Ukraine’s sovereignty and territorial integrity. In addition, Canada implemented targeted restrictions against Russia and Belarus in financial, trade (goods and services), energy and transport sectors. Canada is also part of the Oil Price Cap Coalition, which limits the provision of maritime services to Russian crude oil and petroleum products above a price set by the coalition. The amendments to the Regulations build upon Canada’s existing sanctions by further impeding Russian dealings with Canada. Canada is taking these measures in coordination with partners, including the U.S., the U.K., the European Union (EU), Australia, New Zealand, Japan and Ukraine.
Conditions for imposing and lifting sanctions
Pursuant to SEMA, the Governor in Council may impose economic and other sanctions against foreign states, entities and individuals when, among other circumstances, a person has participated in gross and systematic human rights violations in Russia.
The duration of sanctions by Canada and like-minded partners has been explicitly linked to the peaceful resolution of the conflict and the respect for Ukraine’s sovereignty and territorial integrity within its internationally recognized borders, including Crimea, as well as Ukraine’s territorial sea. The U.S., the U.K., the EU and Australia have continued to update their sanction regimes against individuals and entities in both Ukraine and Russia.
- 1. Impose further macroeconomic costs on Russia and its decision-making bodies.
- 2. Undermine Russia’s ability to conduct its military aggression against Ukraine.
- 3. Target and impose further costs on those individuals and entities engaged in decision-making processes that plan and authorize Russia’s violations of Ukrainian sovereignty and territorial integrity.
- 4. Align Canada’s measures with those taken by international partners.
The amendments to the Regulations add 122 individuals and thirteen 13 entities to Schedule 1 of the Regulations, thereby subjecting them to a broad dealings ban. The newly listed individuals include members of the lower house of Russia’s parliament who have voted in favour of legislation related to the invasion and annexation of Ukrainian territory. Other individuals are senior officials including Russian deputy prime ministers, ministers and others in the Office of the President of Russia and the Russian military. Family members of previously sanctioned individuals are also included. The newly listed entities include decision-making and implementing institutions involved in Russia’s ongoing violation of Ukraine’s sovereignty and territorial integrity, including both houses of the Russian Parliament, United Russia Party, the political party of President Putin, the Federal Security Service of the Russian Federation (FSB), the successor to the Soviet KGB, and the Russian entity created to operate Ukraine’s Zaporizhzhia Nuclear Power Plant, which Russia controls illegally.
The amendments also revise the name of a previously listed individual.
Global Affairs Canada engages regularly with relevant stakeholders, including civil society organizations, cultural communities and other like-minded governments, regarding Canada’s approach to sanctions implementation. Global Affairs Canada research also draws from analysis from pro-democracy movements inside and outside of Russia.
With respect to the amendments targeting individuals and entities, public consultation would not be appropriate, given the risk of asset flight and the urgency to impose these measures in response to the ongoing breach of international peace and security in Ukraine.
Modern treaty obligations and Indigenous engagement and consultation
An initial assessment of the geographical scope of the amendments was conducted and did not identify any modern treaty obligations, as the amendments do not take effect in a modern treaty area.
Regulations are the sole method to enact sanctions in Canada. No other instrument could be considered.
Benefits and costs
Sanctions targeting specific individuals and entities 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. It is likely that the newly listed individuals and entities have limited linkages with Canada, and therefore do not have business dealings that are significant to the Canadian economy.
Canadian banks and financial institutions are required to comply with sanctions. They will do so by adding the newly listed individuals and entities to their existing monitoring systems, which may result in a minor compliance cost.
The amendments could create additional costs for businesses seeking permits that would authorize them to carry out specified activities or transactions that are otherwise prohibited.
Small business lens
Likewise, the amendments could create additional costs for small businesses seeking permits that would authorize them to carry out specified activities or transactions that are otherwise prohibited. However, costs will likely be low as it is unlikely that Canadian small businesses have or will have dealings with the newly listed individuals and entities. No significant loss of opportunities for small businesses is expected as a result of the amendments.
The permitting process for businesses meets the definition of “administrative burden” in the Red Tape Reduction Act and would need to be calculated and offset within 24 months. However, the amendments address an emergency circumstance and are therefore exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule.
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 allies.
Strategic environmental assessment
The amendments are unlikely to result in important environmental effects. In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus (GBA+)
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 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, and limit the collateral effects to those dependent on those targeted individuals and entities.
The amendments seek to impose a direct economic cost on Russia and signal Canada’s strong condemnation of Russia’s violation of Ukraine’s sovereignty and territorial integrity. They target individuals and entities that provide legislative, administrative, financial and other forms of support to Russia’s ongoing violation of Ukrainian sovereignty and territorial integrity. As the conflict enters its second year, the amendments further align Canada’s efforts with those of our international partners, demonstrating our solidarity by exposing individuals and entities engaged in activities that undermine international peace and security.
Implementation, compliance and enforcement, and service standards
The amendments come into force on the day on which they are registered.
The names of the listed individuals and entities 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.
Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency (CBSA). In accordance with section 8 of 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.
The CBSA has enforcement authorities under SEMA and the Customs Act, and will play a role in the enforcement of these sanctions.
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