Regulations Amending the Special Economic Measures (Ukraine) Regulations: SOR/2019-248
Canada Gazette, Part II, Volume 153, Number 14
SOR/2019-248 June 25, 2019
SPECIAL ECONOMIC MEASURES ACT
P.C. 2019-912 June 22, 2019
Whereas the Governor in Council is of the opinion that the situation in Ukraine constitutes a grave breach of international peace and security that has resulted in or is likely to result in a serious international crisis;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to subsections 4(1) footnote a, (1.1)footnote a, (2) and (3) of the Special Economic Measures Act footnote b, makes the annexed Regulations Amending the Special Economic Measures (Ukraine) Regulations.
Regulations Amending the Special Economic Measures (Ukraine) Regulations
1 Item 192 of Part 1 of the schedule to the Special Economic Measures (Ukraine) Regulations footnote 1 is replaced by the following:
192 Aleksey Vladimirovich SHATOKHIN
Application Prior to Publication
Statutory Instruments Act
2 For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, these Regulations apply before they are published in the Canada Gazette.
Coming into Force
3 These Regulations come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
On March 15, 2019, Canada, in coordination with the United States and the European Union (EU), imposed new sanctions in response to Russia’s aggressive actions in the Black Sea and Kerch Strait and Russia’s illegal annexation of Crimea. As part of these regulatory amendments, one individual’s first name in the Regulations Amending the Special Economic Measures (Ukraine) Regulations (SOR/2019-72) was misspelled. He was correctly listed by the EU on March 15, 2019.
Acting in coordination with the United States and the EU, the Governor in Council has found that the illegal annexation of Crimea by the Russian Federation constitutes a grave breach of international peace and security that has resulted or is likely to result in a serious international crisis. As a result, the Special Economic Measures (Russia) Regulations (the Russia Regulations) and the Special Economic Measures (Ukraine) Regulations (the Ukraine Regulations) were approved on March 17, 2014. The Russia Regulations and Ukraine Regulations impose an asset freeze and dealings prohibition on designated individuals and entities. Any person in Canada and Canadians outside Canada are therefore prohibited from dealing in the property, entering transactions with, providing services to, or otherwise making goods available to listed persons. Amendments to the Russia Regulations were made on March 19, March 21, April 28, May 4, May 12, June 21, July 24, August 6, September 16, December 19, 2014; February 17 and June 29, 2015; March 18, 2016; and on March 15, 2019. Amendments to the Ukraine Regulations were made on March 19, April 12, May 12, June 21, July 11, July 24, August 6, December 19, 2014; February 17 and June 29, 2015; March 18 and December 14, 2016; and on March 15, 2019. The most recent additions bring the total number of individuals and entities listed in Canada’s Russia and Ukraine Special Economic Measures Act sanctions to more than 430.
- (1) To correct the misspelled name of the intended sanctions target, an individual who was involved in Russia’s actions against Ukrainian vessels and personnel during the November 25, 2018, incident.
- (2) Align with actions taken by international partners to underscore continued trans-Atlantic unity in responding to Russia’s actions in Ukraine.
The Regulations Amending the Special Economic Measures (Ukraine) Regulations (the Amending Ukraine Regulations) add one individual to Schedule 1 and remove the incorrect individual from Schedule 1.
Public consultation would not be appropriate, as publicizing the name of the listed individual targeted by sanctions may have resulted in asset flight prior to the coming into force of the amendments.
Modern treaty obligations and Indigenous engagement and consultations
An assessment was conducted and no modern treaty implications were identified.
Regulations are the sole method to enact sanctions in Canada. No other instrument could be considered.
Costs and benefits
The recommended listing is an individual who was involved in Russia’s actions against the Ukrainian vessels and personnel during the November 25, 2018, incident. The regulatory amendment seeking to correct the incorrect name will bring Canada in line with like-minded partners in listing the correct target.
It is unlikely that any Canadian businesses have major dealings with the newly listed individual. There may be negligible costs to business in lost business opportunities with the listed individual, as well as costs associated with any applications they might make for permits to conduct dealings with the listed individual. As such, there may be a small administrative cost increase, for both small and other businesses.
Canadian banks and financial institutions will have to meet their existing regulatory compliance burden. Financial institutions will add the new name to their existing monitoring systems to ensure that they are in compliance with sanctions, which may result in a minor compliance cost.
Small business lens
The amendments are unlikely to increase costs to small businesses as it unlikely that small Canadian businesses have dealings with the newly listed individual.
The “One-for-One” Rule does not apply, as there are no incremental increases in administrative burden.
Regulatory cooperation and alignment
The proposal is not related to a work plan or commitment under a formal regulatory cooperation forum. While sanctions regulatory mechanisms of Canada, the United States and the EU are inherently different, this proposed amendment will help align the sanction listings on Ukraine.
Strategic environmental assessment
In accordance with The Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for this proposal.
As part of the March 15, 2019, regulatory amendments, one individual’s first name in the Ukraine Regulations was misspelled. The recommended listing is an individual who was involved in Russia’s actions against the Ukrainian vessels and personnel during the November 25, 2018, incident. He was listed by the EU on March 15, 2019, but inadvertently listed in Canada’s Ukraine Regulations with the incorrect first name. The proposed regulatory amendment seeks to correct that error by deleting and replacing it with the correct name.
Implementation, compliance and enforcement, and service standards
The name of the listed individual will be available online for financial institutions to review and will also be added to the consolidated list of individuals listed under autonomous sanctions regulations in Canada, which will help to facilitate compliance with the amendments.
Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police. In accordance with section 8 of the Special Economic Measures Act, every person who knowingly contravenes or fails to comply with the regulations is liable upon summary conviction to a fine of not more than $25,000 or to imprisonment for a term of not more than one year or to both, or upon conviction on indictment to imprisonment for a term or not more than five years.
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