• Update on Canadian Economic Sanctions against Ukraine
  • August 11, 2014 | Authors: Vincent DeRose; Jennifer Radford
  • Law Firm: Borden Ladner Gervais LLP - Ottawa Office
  • 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 July 24, 2014 the list of designated individuals was expanded from 42 to 49. 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
    28. Viktor Yuriiovych ANOSOV
    29. Viacheslav  Anatoliiovych APRAKSIMOV
    30. Fedir Dmytrovych BEREZIN
    31. Ruslan Yunirovish ILKAEV
    32. Valery Vladimirovich KAUROV
    33. Oleksandr  Sergiyovych KHODAKOVSKYI
    34. Mykola Ivanovych KOZITSYN
    35. Oleksii Borysovych MOZGOVYI
    36. Valerii  Kostiantynovych MUSIIENKO
    37. Viacheslav Mykolaiovych PETROV
    38. Ihor Venedyktovych PLOTNYTSKY
    39. Yurii Oleksandrovych PROTSENKO
    40. Oleh Anatoliiovych VASIN
    41. Serhii Anatoliyovych ZDRILIUK
    42. Vladimir ANTYUFEYEV
    43. Marat BASHIROV
    44. Alexsandr Yurivich BORODAI
    45. Yuriy IVAKIN
    46. Alexandr  Alexsandrovich KALYUSSKY
    47. Aleksey KARYAKIN
    48. Alexandr KHRYAKOV
    49. Vasyl NIKITIN

    As of July 24, 2014, the designated entities now subject to the Ukraine Regulations are:

    1. Chernomorneftegaz
    2. Feodosia
    3. Donetsk People’s Republic
    4. Luhansk People’s Republic

    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.