The Special Economic Measures

On March 17, 2014, the Canadian Government announced that it intended to impose economic sanctions against Ukraine through the Special Economic Measures (Ukraine) Regulations (the “Ukraine Regulations”). The Ukraine Regulations impose an asset freeze on a list of designated persons.

On June 21, 2014 the list of designated individuals was expanded from 17 to 27. Those designated persons are:

  1. Serhiy Valeriyovich AKSYONOV
  2. Volodymyr Andriyovych KONSTANTYNOV
  3. Viktor Volodymyrovich MEDVEDCHUK
  4. Rustam Ilmirovich TEMIRGALIEV
  5. Deniz Valentinovich BEREZOVSKIY
  6. Aleksei Mikhailovich CHALIY
  7. Pyotr Anatoliyovych ZIMA
  8. Yuriy ZHEREBTSOV
  9. Sergey Pavlovych TSEKOV
  10. Mikhail MALYSHEV
  11. Valery MEDVEDEV
  12. Olga Fedorovna KOVATIDI
  13. German PROKOPIV
  14. Valeriy BOLOTOV
  15. Andriy PURGIN
  16. Denys PUSHYLIN
  17. Sergey Gennadevich TSYPLAKOV
  18. Petr Grigorievich JAROSH
  19. Oleg Grigorievich KOZYURA
  20. Viacheslav PONOMARIOV
  21. Igor Mykolaiovych BEZLER
  22. Igor KAKIDZYANOV
  23. Oleg TSARIOV
  24. Roman LYAGIN
  25. Aleksandr MALYKHIN
  26. Natalia Vladimirovna POKLONSKAYA
  27. Igor Sergeievich SHEVCHENKO

The June 21, 2014 amendments also expanded the designated entities subject to the Ukraine Regulations. The entities now subject to the Ukraine Regulations are:

  1. Chernomorneftegaz
  2. Feodosia

The Ukraine Regulations prohibit persons in Canada and Canadians abroad from:

  • Dealing in any property held by or on behalf of a designated person, or facilitating or providing financial or other related services in respect of such a dealing;
  • Making any goods available to a designated person; and,
  • Providing any financial or related services to or for the benefit of a designated person.

“Causing, assisting, or promoting” these prohibited activities is also not permitted. There are some exceptions, including the following:

  • Payments made by or on behalf of designated persons pursuant to contracts entered to before their designation, provided the payment is not for their benefit;
  • Pension payments to any person in Canada or Canadian abroad;
  • Certain transactions in respect of diplomatic missions;
  • Transactions to UN agencies, the International Red Cross and Red Crescent Movement, and Canadian NGOs in certain circumstances;
  • Transactions necessary for a Canadian to transfer to a non-designated person any accounts, funds or investments held by a designated person when that person became a designated person;
  • Financial services required in order for a designated person to obtain certain legal services in Canada; and
  • Payments to any person in Canada or any Canadian abroad in respect of loans entered into prior to March 17, 2014.

It is worth noting that the Minister of Foreign Affairs does have the power to issue to any person in Canada or a Canadian abroad a permit to carry out any of the activities or transactions that are currently restricted or prohibited by way of the Ukraine Regulations.

Those conducting business in Ukraine, or with Ukrainian business partners outside of Ukraine, may wish to consider implementing incremental processes and procedures to ensure compliance with these new Canadian laws. The economic sanctions imposed on Ukraine have rapidly evolved and ongoing vigilance with respect to developments is the prudent course.

Economic Sanctions Contacts

Vincent J. DeRose and Jennifer L. Radford are partners in the Ottawa office of Borden Ladner and regularly assist businesses with Canadian economic sanctions and export controls.

 

Other Authors

Jennifer Radford
Vincent DeRose

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