Insight

Hobbling the War Machine

Since late spring, the Canadian government has been actively sanctioning business and political entities, as well as numerous individuals, with alleged ties to Vladimir Putin and the Russian military, including some in Belarus. You can’t tell the players without a scorecard—so here’s an overview.

Military tank with prohibited symbol
SN

Shawn C.D. Neylan

September 30, 2022 12:00 AM

ON JUNE 27, Canada imposed new sanctions on Russia intended to prohibit the export of certain advanced technologies and goods that could be used in the production and manufacturing of weapons by Vladimir Putin’s regime. The categories of goods and technologies that fall under the sanctions are extensive:

  • quantum computing materials;
  • cryogenic refrigeration systems;
  • ultra-high vacuum equipment;
  • high quantum efficiency photodetectors;
  • additive manufacturing equipment for certain uses or processes;
  • metal powders for additive manufacturing;
  • certain microscopes and detectors;
  • decapsulation equipment for semiconductor devices;
  • software related to the above items
  • software for digital twins of additive manufactured products or the determination of the reliability of additive manufactured products (digital twin technology can be used for testing and process monitoring of additive manufacturing); and
  • technology related to the above items.

The sanctions also covered six senior Russian defense officials and 46 Russian defense entities.

Designations of Russian Media

Ten days later, on July 7, Canada took the remarkable step of designating 29 individuals who are, according to the Canadian government, figures involved in Russian disinformation and propaganda, as well as 15 entities that Canada refers to as involved in disinformation activity, including a media regulator. The Russian government likely considers the sanctioned individuals to be media figures, albeit state-friendly or outright state-controlled. Illustrative of the news-media nature of the people are the names of the entities:

  • Channel One Russia JSC;
  • Television Station Russia-1;
  • NTV Broadcasting Company JSC;
  • Russotrudnichestvo (known as “the Federal Agency for the Commonwealth of Independent States Affairs, Compatriots Living Abroad and International Humanitarian Cooperation”);
  • TASS;
  • the All-Russia State Television and Radio Broadcasting Company (VGTRK);
  • Gazprom Media;
  • National Media Group;
  • Rossiya-24 TV Channel;
  • Smotrim;
  • Ru;
  • RT;
  • Sputnik;
  • REGNUM News Agency; and
  • Roskomnadzor (the “Federal Service for Supervision of Communications, Information technology and Mass Media”).

Notably, Chrystia Freeland, the Canadian Deputy Prime Minister, who is widely considered to be driving the policy on Canada’s sanctions on Russia and Belarus, was formerly a well-known member of the press who once served as the Moscow bureau chief for an international business-news organization.

Gold Import Ban

Also on July 7, Canada prohibited the import of certain gold products from Russia, including unwrought gold, semi-manufactured gold, gold powder, monetary gold and jewelry made of gold.

This poses an ever-increasing burden on Canadian companies, which must comply with these sanctions."

Services Ban Expanded

A week later, on July 14, Canada added two more manufacturing services to the list of those that cannot be provided to banned industries: services incidental to manufacturing, except to the manufacture of metal products, machinery and equipment; and services incidental to the manufacture of metal products, machinery and equipment.

Canada also added eight new industries to the list of those to which banned services cannot be provided:

  • the manufacture of basic metals;
  • of fabricated metal products;
  • of computer, electronic and optical products;
  • of electrical equipment;
  • of machinery and equipment;
  • of motor vehicles, trailers and semi trailers;
  • of other transport equipment; and
  • land transport and transport via pipelines.

The Bucha Massacre and Other Defense-Sector Designations

On July 29, Canada designated for sanctions an additional 43 individuals and 17 entities. These include military officials allegedly involved in the massacre of more than 1,000 Ukrainians in the city of Bucha early in the war, as well as entities in the defense sector that, according to Canada’s government, directly or indirectly support the Russian military.

Sanctions on Belarus Are Expanded

On June 27, Canada imposed new sanctions on Belarus similar to those previously or contemporaneously imposed on Russia. These prohibit the export to Belarus of certain goods and technologies, luxury goods and goods for the manufacture of weapons; they also ban the import of certain luxury goods from Belarus. The same day, Canada designated for sanctions 13 senior officials of Belarus’s Ministry of Defense and two Belarusian military entities.

Designation of Certain Ukrainian Nationals

Also on June 27, Canada sanctioned 15 former senior officials of the so-called Luhansk People’s Republic and Donetsk People’s Republic, along with their family members and purported leaders in areas of eastern Ukraine illegally occupied by Russian forces or controlled by Russia-backed proxies.

Potential Implications for Canadian Businesses

As detailed above, Canada continues to add to the thicket of sanctions on Russia and Belarus. This poses an ever-increasing burden on Canadian companies, which must comply with these sanctions. It’s important to take care to ensure compliance; enforcement is surely more top-of-mind than it has been in recent years.

Conclusion

The pace of new Canadian sanctions has yet to abate. Although the number of people and entities who could potentially be designated for their involvement in or support of Russia’s war is presumably vast, logically there ought to be an end point for other types of sanctions given how extensive the ones already imposed have been—and the diminishing returns of identifying any remaining areas of commercial relations between Canada and Russia (or Belarus). This hasn’t happened yet, however, and the Canadian government remains creative in finding new sanctions to impose, apparently wishing to maintain a position of global leadership to whatever extent it is able.

This article was first published on Stikeman Elliott LLP’s Knowledge Hub and originally appeared at www.stikeman.com. All rights reserved.

Shawn C.D. Neylan is a partner in the Competition & Foreign Investment Group of Stikeman Elliott and advises businesses in relation to business crime laws. He concentrates his practice on Canadian federal regulatory and criminal laws with regard to anti-corruption, national security, economic sanctions, commercial bribery, anti-money laundering and proceeds of crime prohibitions and merger control laws. Highly esteemed for his expertise in substantive competition and antitrust matters, Shawn has received numerous accolades for his work.

Headline Image: ISTOCK/AlexKontz, ISTOCK/ulimi, ISTOCK/Aurelio Antonio

Related Articles

The Antipodean Advantage


by Gordon Grieve and Tony Britten-Jones

As the pandemic recedes, Australia remains one of the best countries in which to invest. The commercial law experts at Piper Alderman review the country’s advantages when it comes to outside money looking for outsized returns.

Man pointing to cave wall

It’s Official: Options for Challenging “Official Marks” in Canada


by Jamie-Lynn Kraft and Philip Lapin

“Official marks” are a strangely obscure corner of Canadian intellectual-property law. What are they, what explains their strength and what can a business owner in search of a trademark do to challenge them?

Two griffins on royal crest

Growing Canadian Business Abroad


by Didier Culat

Canadian entrepreneurs looking to expand their businesses beyond the geographic confines of their home dominion must consider a vast range of questions to ensure they’re fit to branch out. Here’s a quick primer.

Green arrows rising with Canada in backdrop

Latinflation


by Alejandra Daroch, Domingo Russi, and Jaime Carey Astaburuaga

Long a beacon of economic stability in South America, Chile has been buffeted lately by the global rise in inflation. Can a key element of its monetary policy help it weather the storm?

Waves crashing into lighthouse

The Carbon Conundrum


by Martin Hamer and Natalie Kopplow

Companies that trade internationally might soon face a “carbon tariff” when importing certain goods into the European Union. Why is the EU doing this—and how will it affect world trade?

Power plant billowing smoke

Rental House of Cards


by Tyler D’Angelo

The pandemic devastated uncountable businesses worldwide. A recent court case involving some of Canada’s most venerable companies and pension funds sheds light on the stringency of the country’s commercial leases—and the judiciary’s reluctance to meddle in sophisticated commercial contracts amid a “black swan” event.

Toppling house of cards

The Future of Trade is Digital


by Alan de Rochefort-Reynolds, Daniel Allman, and Jo Feldman

Digital information increasingly drives bilateral and multilateral trade throughout the Indo-Pacific region. It behooves countries to devise agreements governing the use and exchange of the enormous amounts of vital data generated every day.

Neon colored boxes in circle with black background

Competitive Balance


by David Feldman and Peter Flynn

Major amendments to Canada’s Competition Act were rushed through Parliament this June with scarcely any debate. They will likely have enormous antitrust ramifications—and businesses had better be ready.

Blaring megaphone sounds the alarm

"Lawyer of the Year"


Lawyer of the year wearing suit and posing for headshot photo

Ira G. Bogner

Employee Benefits (ERISA) Law

New York City, NY

2025

IN PARTNERSHIP

What Is Contributory Negligence and How Does It Affect My Alabama Injury Case?


by Keith Belt

Injured in a car accident in Alabama? Based on the theory of contributory negligence, your role in the accident can affect your ability to collect post-trial.

Worker on construction site steps on nail

IN PARTNERSHIP

When Do You Need to Hire a Car Accident Lawyer?


by Kyle Wright

Were you involved in a car accident? Read this legal insights article to learn about whether it would be beneficial for you to hire a car accident lawyer.

Motorcycle and helmet on ground after an accident

IN PARTNERSHIP

How to Make Sure You Get the Maximum Compensation for a Personal Injury Claim


by John P. Ford

This article discusses the numerous factors that affect a personal injury settlement and tips for how to maximize compensation in a personal injury claim.

Stethoscope sitting on top of money and medical form

Best Lawyers Through the Ages: Our Past. Our Today. Our Future.


by Best Lawyers

With over 168,000 recognized legal professionals across 150 practice areas in 76 countries, Best Lawyers remains the original trusted source for legal awards.

Skyscrapers against evening sky with water

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

"Lawyer of the Year"


Lawyer poses for legal headshot in purple dress

Eva Davis

Corporate Law

Los Angeles, CA

2025

One of NY’s Top Personal Injury Lawyers on 2 Surprising Trends Transforming the Industry


by Gregory Sirico

Lawyer Jeff Korek talks emerging personal injury law trends in IVF litigation and trial scarcity.

Doctor consoles couple in medical office

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Discover The Best Lawyers in Spain 2025 Edition


by Jennifer Verta

Highlighting Spain’s leading legal professionals and rising talents.

Flags of Spain, representing Best Lawyers country

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Presenting the 2025 Best Lawyers Editions in Chile, Colombia, Peru and Puerto Rico


by Jennifer Verta

Celebrating top legal professionals in South America and the Caribbean.

Flags of Puerto Rico, Chile, Colombia, and Peru, representing countries featured in the Best Lawyers

Unveiling the 2025 Best Lawyers Editions in Brazil, Mexico, Portugal and South Africa


by Jennifer Verta

Best Lawyers celebrates the finest in law, reaffirming its commitment to the global legal community.

Flags of Brazil, Mexico, Portugal and South Africa, representing Best Lawyers countries

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

The Human Cost


by Justin Smulison

2 new EU laws aim to reshape global business by enforcing ethical supply chains, focusing on human rights and sustainability

Worker wearing hat stands in field carrying equipemtn

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Introduction to Demand Generation for Law Firms


by Jennifer Verta

Learn the essentials of demand gen for law firms and how these strategies can drive client acquisition, retention, and long-term success.

Illustration of a hand holding a magnet, attracting icons representing individuals towards a central