On June 29, 2015, the Canadian Government announced the
imposition of additional sanctions against Russian individuals and
organizations. This expansion of Canada's economic sanctions
against Russia is a response to what Prime Minister Stephen Harper
has described as continued aggression in Crimea.
The new amendments expand the list of both "Schedule
1" and "Schedule 3" designated persons and entities.
The prohibitions applicable to "Schedule 1" designated
persons and entities are much more onerous than the prohibitions
applicable to "Schedule 3" designated persons.
The following individuals have been added to the "Schedule
1" designated persons list:
The following entities have been added to the "Schedule
1" designated entities list:
Eurasian Youth Union
JSC Tula Arms Plant
JSC United Aircraft Corporation
Marshall Capital Fund
Night Wolves Motorcycle Club
OAO JSC Chemcomposite
OAO Wysokototschnye Kompletski
The Canadian sanctions prohibit persons in Canada and Canadians
dealing in any property, wherever situated, held by or on
behalf of a Schedule 1 designated person or entities;
entering into or facilitating, directly or indirectly, any
transaction related to such a dealing;
providing any financial or related service in respect of such a
making goods, wherever situated, available to a Schedule 1
designated person or entity; and
providing any financial or related service to or for the
benefit of a Schedule 1 designated person or entity.
Unless an Exemption Order is obtained from the Canadian
Government, or the transaction falls within an exemption (which are
very limited), Canadians are effectively prohibited from carrying
on business with any Schedule 1 designated person or entity.
Schedule 3 to the Regulations has also been amended by adding
the following entities.
OJSC Gazprom Neft
OJSC Surgutneftegas "
Sanctions applicable to these Schedule 3 entities only prohibit
persons in Canada and Canadian citizens abroad from entering into
certain types of debt financing transactions. The prohibited
financing transactions include certain types of bonds, loans,
debentures, extensions of credit, loan guarantees, letters of
credit, bank drafts, bankers' acceptances, discount notes,
treasury bills, commercial paper or other similar instruments that
have a maturity date longer than 90 days. Canadians are permitted
to continue to do business with Schedule 3 entities so long as it
does not involve prohibited financing.
The economic sanctions do not prevent Canadian companies from
continuing to do business with Russia. However, these economic
sanctions impose a greater burden on Canadian companies conducting
business in Russia, or with Russian business partners outside of
Russia, to ensure that they maintain compliance with Canadian
While that agreement mandated export measures on Canadian softwood lumber exports destined for the United States, it also protected those lumber exports from the potential imposition of onerous import measures by the U.S.
On September 29, 2016, the Supreme Court of Canada issued its first tariff classification decision since Canada signed the International Convention on the Harmonized Commodity Description and Coding System in 1998.
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