Russia/Ukraine Economic Sanctions Update: Canada expands sanctions list against Russian and Ukrainian individuals and entities
On August 6, 2014, the continued turmoil in eastern Ukraine caused the Government of Canada to expand its economic sanctions against Russia and Ukraine by adding entities and individuals to its lists of “designated persons”.Persons in Canada and Canadians outside Canada are prohibited from engaging in a range of activities that involve designated persons. The restrictions differ depending on which Schedule to the Special Economic Measures (Russia) Regulations (Russia Regulations) the designated person is listed.
On July 25, 2014 the Russia Regulations were amended (see our previous client alert for a detailed outline of these amendments). As a result of these amendments, there are now three schedules of designated persons:
- Schedule 1: There are broad prohibitions against dealing in the property of these designated persons, facilitating such dealings, providing or acquiring financial services to or for their benefit, and making goods available to them. Up until now, this has been the only list for designating Russian individuals and firms.
- Schedule 2: There are restrictions on new debt and new equity transactions involving persons designated under this schedule.
- Schedule 3: There are restrictions on new debt transactions involving these designated persons.
The following commercial entities have been added to Schedule 1 of the Russia Regulations and are subject to the broad prohibitions described above:
- United Shipbuilding Corporation
- Dobrolet (also known as Dobrolyot)
- Russian National Commercial Bank
- Kerch ferry
- Kerch commercial seaport
- Sevastopol commercial seaport
- Azov distillery plant
- Magarach of the national institute of wine
- Factory of sparkling wine Novy Svet
- National Association of producers “Massandra”
- Resort “Nizhnyaya Oreanda”
The following commercial entities have been added to Schedule 2 of the Russia Regulations and are subject to the prohibitions regarding new debt and new equity transactions:
- VTB Bank OAO
- Bank of Moscow
- Russian Agricultural Bank (Rosselkhozbank)