In this post we look at the latest sanctions-related developments relating to the invasion of Ukraine. These restrictions are in addition to those already imposed in relation to Russia, Belarus and Ukraine under the Special Economic Measures Act ("SEMA") as described in our blog posts of February 25, March 3, March 4, March 15, March 21, and April 7, 2022,.

As discussed below, the new developments include:

  • More Russians and Ukrainians have become designated persons.
  • New bans on the import and export of luxury goods have been imposed. There are two lists and the export list in particular is very broad.
  • A new ban on the export of materials that have potential defence applications has been imposed. This list is very broad.

More Designated Russians and Ukrainians

Additional Russian and Ukrainian persons have been designated as follows:

  • 14 Russian individuals were designated on April 19.
  • 203 Ukrainian individuals were designated on April 26, apparently for being allied with Russia.
  • 21 Russian individuals were designated on May 13.
  • 19 Russian individuals and 5 Russian entities were designated on May 6.
  • 14 Russian individuals were designated on May 18.

Luxury Goods Export Ban

On May 18, the SEMA Russia Regulations were amended to include a ban on the export, sale, supply or shipment of any scheduled luxury good to Russia or to any person in Russia. A wide range of products are subject to the export ban including, for example, certain specified alcoholic beverages, tobacco products, perfumes, cosmetics, plastics, clothing, ornamental products, luggage and handbags, furs, silk, carpets, textiles, blankets, tents, sails, lifejackets, footwear, headgear, tableware and kitchenware, ceramic houseware such as bathroom fixtures, glassware, pearls, diamonds and other gems, silver, gold, jewelry, internal combustion engines including outboard engines, hydraulic engines, portable computers, passenger vehicles for travelling on snow, golf carts, passenger vehicles, motorcycles, wrist and pocket watches, grand pianos, artist and cosmetic brushes, pens, paintings and other art, postage stamps, biological, numismatic and archaeological articles and collections and antiques.

The descriptions of the products are technical and reference should be made to the regulations to determine if any particular product is subject to this ban.

Luxury Goods Import Ban

On May 18, the SEMA Russia Regulations were amended to include a ban on the import, purchase or acquisition of any scheduled luxury good from Russia or from any person in Russia. A wide range of products are subject to the export ban including, for example, certain specified fish, crustaceans, caviar, alcoholic beverages and diamonds.

The descriptions of the products are technical and reference should be made to the regulations to determine if any particular product is subject to this ban.

Goods for Manufacture of Weapons Ban

On May 18, the SEMA Russia Regulations were amended to include a ban on the export, sale, supply or shipment of any scheduled goods to Russia or to any person in Russia. Some of the specified goods related to the manufacture of weapons but others do not. This ban is in addition to restrictions on various military, dual use and other goods and technology under the Export and Import Permits Act. Examples of goods subject to this new SEMA ban include certain specified tungsten, boron, tellurium, bandaging materials, lubricants, catalysts, aluminum, tantalum, bismuth, titanium, rhenium, niobium, diesel engines, pumps, air conditioners, cranes, forklifts, industrial robots, bulldozers, front-end loaders, machinery with a 360 degree rotating structure, pile drivers, rock cutters, tunnelling machinery, boring machinery, tamping machinery, concrete mixers, ball bearings, electrical machinery, tractors, transport vehicles, drilling derricks, tanks, drones, aircraft, helicopters, spacecraft, ships, cameras, projectors, medical and surgical instruments, oxygen therapy apparatuses, X-ray equipment, liquid and gas measurement devices, other measuring instruments, thermostats and medical and surgical furniture such as operating tables.

The descriptions of the products are technical and reference should be made to the regulations to determine if any particular product is subject to this ban.

Conclusion

Canada continues to dial up its sanctions response to Russia's invasion of Ukraine. The restrictions as a whole are clearly impacting Canadian businesses. It is important for Canadian businesses to monitor developments and determine if their business is in compliance with any new restrictions that may be imposed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.