Special Economic Measures (Russia) Regulations

SOR/2014-58SPECIAL ECONOMIC MEASURES ACT
Registration 2014-03-17
Special Economic Measures (Russia) Regulations
P.C. 2014-282 2014-03-17Whereas the Governor in Council is of the opinion that the actions of the Russian Federation constitute a grave breach of international peace and security that has resulted or is likely to result in a serious international crisis;
Therefore, His Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, pursuant to subsections 4(1) to (3) of the Special Economic Measures ActFootnote a, makes the annexed Special Economic Measures (Russia) Regulations.
Return to footnote aS.C. 1992, c. 17Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Convention
Convention

Convention means the Vienna Convention on Diplomatic Relations, done at Vienna on April 18, 1961. (Convention)

designated person
personne désignée

designated person means a person who is in Russia, or is a national of Russia who does not ordinarily reside in Canada, and whose name is listed in either one of Schedules 1, 2 or 3. (personne désignée)

Minister
ministre

Minister means the Minister of Foreign Affairs. (ministre)

pension
pension

pension means a benefit paid under the Old Age Security Act, the Canada Pension Plan or an Act respecting the Quebec Pension Plan, CQLR, c. R-9, any superannuation, pension or benefit paid under or in respect of any retirement savings plan or under any retirement plan, any amount paid under or in respect of the Garnishment, Attachment and Pension Diversion Act or the Pension Benefits Division Act, and any other payment made in respect of disability. (pension)

Russia
Russie

Russia means the Russian Federation and includes

(a) any political subdivision of the Russian Federation;
(b) the government, and any department, of the Russian Federation or of a political subdivision of the Russian Federation; and
(c) any agency of the Russian Federation or of a political subdivision of the Russian Federation. (Russie)

SOR/2014-184, s. 1.
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List

Marginal note:Schedule 1

2 A person whose name is listed in Schedule 1 is a person in respect of whom the Governor in Council, on the recommendation of the Minister, is satisfied that there are reasonable grounds to believe is

(a) a person engaged in activities that directly or indirectly facilitate, support, provide funding for or contribute to a violation or attempted violation of the sovereignty or territorial integrity of Ukraine or that obstruct the work of international organizations in Ukraine;
(b) a former or current senior official of the Government of Russia;
(c) an associate or family member of a person described in paragraph (a) or (b);
(d) an entity owned or controlled by, or acting on behalf of, a person described in paragraph (a), (b) or (c); or
(e) a senior official of an entity described in paragraph (d).

SOR/2014-98, s. 1;
SOR/2014-171, s. 1;
SOR/2014-184, s. 2;
SOR/2016-50, s. 1.

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Marginal note:Schedule 2 or 3

2.1 A person whose name is listed in Schedule 2 or 3 is a person in respect of whom the Governor in Council, on the recommendation of the Minister, is satisfied that there are reasonable grounds to believe is a person owned or controlled by, or acting on behalf of, a person described in paragraph 2(a) or (b).
SOR/2014-184, s. 3.

Prohibitions

Marginal note:Prohibited transactions and activities

3 It is prohibited for any person in Canada and any Canadian outside Canada to

(a) deal in any property, wherever situated, held by or on behalf of a designated person whose name is listed in Schedule 1;
(b) enter into or facilitate, directly or indirectly, any transaction related to a dealing referred to in paragraph (a);
(c) provide any financial or other related service in respect of a dealing referred to in paragraph (a);
(d) make any goods, wherever situated, available to a designated person listed in Schedule 1; or
(e) provide any financial or related service to or for the benefit of a designated person listed in Schedule 1.

SOR/2014-184, s. 4.
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Marginal note:New debt financing — 30 days

3.1 (1) It is prohibited for any person in Canada and any Canadian outside Canada to transact in, provide financing for or otherwise deal in new debt of longer than 30 days’ maturity, including bonds, loans, debentures, extensions of credit, loan guarantees, letters of credit, bank drafts, bankers’ acceptances, discount notes, treasury bills, commercial paper and other similar instruments, in relation to

(a) a designated person listed in Schedule 2;
(b) the property of a designated person listed in Schedule 2; or
(c) the interests or rights in property of a designated person listed in Schedule 2.

Marginal note:New debt financing — 90 days

(1.1) It is prohibited for any person in Canada and any Canadian outside Canada to transact in, provide financing for or otherwise deal in new debt of longer than 90 days’ maturity, including bonds, loans, debentures, extensions of credit, loan guarantees, letters of credit, bank drafts, bankers’ acceptances, discount notes, treasury bills, commercial paper and other similar instruments, in relation to

(a) a designated person listed in Schedule 3;
(b) the property of a designated person listed in Schedule 3; or
(c) the interests or rights in property of a designated person listed in Schedule 3.

Marginal note:Non-application

(2) Subsections (1) and (1.1) do not apply if the activities referred to in those subsections were undertaken before the designated person was listed in Schedule 2 or 3.

SOR/2014-184, s. 5;
SOR/2014-204, s. 1;
SOR/2014-316, s. 1.

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Marginal note:New equity financing

3.2 (1) It is prohibited for any person in Canada and any Canadian outside Canada to transact in, provide financing for or otherwise deal in new securities, including shares or any other ownership interest, in relation to

(a) a designated person listed in Schedule 2;
(b) the property of a designated person listed in Schedule 2; or
(c) the interests or rights in property of a designated person listed in Schedule 2.

Marginal note:Non-application

(2) Subsection (1) does not apply if the activities referred to in that subsection were undertaken before the designated person was listed in Schedule 2.

SOR/2014-184, s. 5;
SOR/2014-316, s. 2.

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Marginal note:Oil exploration or production

3.3 (1) It is prohibited for any person in Canada and any Canadian outside Canada to export, sell, supply or ship any good referred to in column 1 of Schedule 4, wherever situated, to Russia or to any person in Russia for use in

(a) offshore oil exploration or production at a depth greater than 500 m;
(b) oil exploration or production in the Arctic; or
(c) shale oil exploration or production.

Marginal note:Services

(2) It is prohibited for any person in Canada and any Canadian outside Canada to provide to Russia or to any person in Russia any financial, technical or other services related to any good whose export, sale, supply or shipment is prohibited by subsection (1).

Marginal note:Non-application

(3) Subsections (1) and (2) do not apply to goods or services if a contract for the export, sale, supply or shipment of the good or for any related service set out in subsection (2) is entered into before the day on which this section comes into force.

SOR/2014-316, s. 3.

Marginal note:Non-application

4 Section 3 does not apply in respect of

(a) any payment made by or on behalf of a designated person listed in Schedule 1 that is due under a contract entered into before the designated person was listed in that Schedule, provided that the payment is not made to or for the benefit of a designated person listed in that Schedule;
(b) pension payments to any person in Canada or any Canadian outside Canada;
(c) any transaction in respect of any account at a financial institution held by a diplomatic mission, if the transaction is required in order for the mission to fulfill its diplomatic functions as set out in Article 3 of the Convention or, if the diplomatic mission has been temporarily or permanently recalled, when the transaction is required in order to maintain the mission premises;
(d) any transaction to international organizations with diplomatic status, United Nations agencies, the International Red Cross and Red Crescent Movement, or Canadian non-governmental organizations that have entered into a grant or contribution agreement with the Department of Foreign Affairs, Trade and Development;
(e) any transactions necessary for a Canadian to transfer to a person not listed in Schedule 1 any accounts, funds or investments of a Canadian held by a designated person listed in that schedule on the day on which that person was listed in Schedule 1;
(f) financial services required in order for a designated person listed in Schedule 1 to obtain legal services in Canada with respect to the application of any of the prohibitions set out in these Regulations; and
(g) any dealings with a designated person listed in Schedule 1 required with respect to loan repayments made to any person in Canada, or any Canadian outside Canada, for loans entered into with any person other than a designated person listed in Schedule 1 or with a designated person listed in that Schedule before the day on which that person was listed in that Schedule, and for enforcement or realization of security in respect of those loans, or payments by guarantors guaranteeing those loans.

SOR/2014-184, s. 6.
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Marginal note:Prohibited act

5 It is prohibited for any person in Canada and any Canadian outside Canada to do anything that causes, assists or promotes, or is intended to cause, assist or promote, any act or thing prohibited under any of sections 3 to 3.3.

SOR/2014-184, s. 7;
SOR/2014-316, s. 4.

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Obligations

Marginal note:Duty to determine

6 Each of the following entities must determine on a continuing basis whether it is in possession or control of property owned or controlled by or on behalf of a designated person listed in Schedule 1:

(a) authorized foreign banks, as defined in section 2 of the Bank Act, in respect of their business in Canada or banks to which that Act applies;
(b) cooperative credit societies, savings and credit unions and caisses populaires regulated by a provincial Act and associations regulated by the Cooperative Credit Associations Act;
(c) foreign companies, as defined in subsection 2(1) of the Insurance Companies Act, in respect of their insurance business in Canada;
(d) companies, provincial companies and societies, as those terms are defined in subsection 2(1) of the Insurance Companies Act;
(e) fraternal benefit societies regulated by a provincial Act in respect of their insurance activities and insurance companies and other entities engaged in the business of insuring risks that are regulated by a provincial Act;
(f) companies to which the Trust and Loan Companies Act applies;
(g) trust companies regulated by a provincial Act;
(h) loan companies regulated by a provincial Act;
(i) entities that engage in any activity described in paragraph 5(h) of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, if the activity involves the opening of an account for a client; and
(j) entities authorized under provincial legislation to engage in the business of dealing in securities, or to provide portfolio management or investment counselling services.

SOR/2014-184, s. 8.
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Marginal note:Disclosure

7 (1) Every person in Canada and every Canadian outside Canada must disclose without delay to the Commissioner of the Royal Canadian Mounted Police

(a) the existence of property in their possession or control that they have reason to believe is owned or controlled, directly or indirectly, by a designated person listed in Schedule 1 or by an entity owned or controlled by a designated person listed in that Schedule; and
(b) information about a transaction or proposed transaction in respect of property referred to in paragraph (a).

Marginal note:Immunity

(2) No person contravenes subsection (1) by disclosing in good faith under that subsection.

SOR/2014-184, s. 9.
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Applications

Marginal note:Application to no longer be designated person

8 (1) A designated person may apply in writing to the Minister to have their name removed from Schedule 1, 2 or 3.

Marginal note:Recommendation

(2) On receipt of the application, the Minister must decide whether there are reasonable grounds to recommend to the Governor in Council that the applicant’s name be removed from Schedule 1, 2 or 3.

Marginal note:Decision

(3) The Minister must make a decision on the application within 90 days after the day on which the application is received.

Marginal note:Notice

(4) The Minister must give notice without delay to the applicant of the decision taken.

Marginal note:New application

(5) If there has been a material change in circumstances since the last application was submitted, a person may submit another application under subsection (1).

SOR/2014-184, s. 10.
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Marginal note:Application for certificate

9 (1) A person claiming not to be a designated person may apply to the Minister for a certificate stating that they are not the person who has been designated under either section 2 or 2.1

Marginal note:Decision

(2) If it is established that the person is not a designated person, the Minister must issue a certificate to the applicant within 30 days after the day on which the application is received.

SOR/2014-184, s. 11.
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Application Prior to Publication

Marginal note:Statutory Instruments Act

10 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

Marginal note:Registration

11 These Regulations come into force on the day on which they are registered.

SCHEDULE 1(Sections 1 and 2, paragraphs 3(a), (d) and (e) and 4(a) and (e) to (g), section 6, paragraph 7(1)(a) and section 8)Persons

PART 1 Individuals

1 
Sergey Yur’yevich GLAZ’YEV

2 
Andrei KLISHAS

3 
Valentina Ivanovna MATVIYENKO

4 
Yelena Borisovna MIZULINA

5 
Dmitry Olegovich ROGOZIN

6 
Leonid Eduardovich SLUTSKIY

7 
Vladislav Yur’yevich SURKOV

8 
Viktor Alekseevich OZEROV

9 
Vladimir Michailovich DZHABAROV

10 
Nikolai Ivanovich RYZHKOV

11 
Evgeni Viktorovich BUSHMIN

12 
Aleksandr Borisovich TOTOONOV

13 
Oleg Evgenevich PANTELEEV

14 
Sergei Mikhailovich MIRONOV

15 
Sergei Vladimirovich ZHELEZNYAK

16 
Aleksandr Viktorovich VITKO

17 
Anatoliy Alekseevich SIDOROV

18 
Aleksandr GALKIN

19 
Arkadii Viktorovich BAHKIN

20 
Andrei Alexandrovich FURSENKO

21 
Alexei GROMOV

22 
Vitalii Nikitich IGNATENKO

23 
Sergei IVANOV

24 
Victor Petrovich IVANOV

25 
Vladimir Igorevich KOHZIN

26 
Yuri Valentinovich KOVALCHUK

27 
Mikhail Vitalevich MARGELOV

28 
Sergey Yevgenyevich NARYSHKIN

29 
Vladimir PLIGIN

30 
Igor Dmitrievich SERGUN

31 
Gennady TIMCHENKO

32 
Yury Viktorovich USHAKOV

33 
Vyaecheslav VOLODIN

34 
Dmitry KOZAK

35 
Aleksey PUSHKOV

36 
Alexander Mikhailovich BABAKOV

37 
Oleg Evgenyevich BELAVENTSEV

38 
Evgeniy Alexsevevich MOROV

39 
Vladimir Volfovich ZHIRINOVSKY

40 
Arkady ROTENBERG

41 
Boris ROTENBERG

42 
Valery Vasilevich GERASIMOV

43 
Igor GIRKIN (also known as Igor STRELKOV)

44 
Sergei Ivanovich MENYAILO

45 
Sergei Ivanovich NEVEROV

46 
Oleg Genrikhovich SAVELYEV

47 
Ludmila Ivanovna SHVETSOVA

48 
Vladimir SHAMANOV

49 
Sergei Orestovoch BESEDA

50 
Aleksandr Vasilievich BORTNIKOV

51 
Mikhail Vladimirovich DEGTYAREV

52 
Mikhail Efimovich FRADKOV

53 
Boris Vyacheslavovich GRYZLOV

54 
Ramzan Akhmadovitch KADYROV

55 
Vladimir Georgyevich KULISHOV

56 
Rashid Gumarovich NURGALIEV

57 
Nikolai Platonovich PATRUSHEV

58 
Igor SHCHEGOLEV

59 
Alexander Nikolayevich TKACHYOV

60 
Valerii Yuriovych TRAVKIN

61 
Nikolay Terentievich SHAMALOV

62 
Konstantin Valerevich MALOFEEV

63 
Dmitry Vitalievich BULGAKOV

64 
Yuriy Eduardovich SADOVENKO

65 
Nikolai Vasilyevich BOGDANOVSKIY

66 
Oleg Leonidovich SALYUKOV

67 
Leonid Ivanovich KALASHNIKOV

68 
Igor Vladimirovich LEBEDEV

69 
Oleg Vladimirovich LEBEDEV

70 
Nikolai Vladimirovich LEVICHEV

71 
Ivan Ivanovich MELNIKOV

72 
Vladimir Stepanovich NIKITIN

73 
Andrei Nikolaevich RODKIN

74 
Vladimir Abdualiyevich VASILYEV

75 
Viktor Petrovich VODOLATSKY

76 
Yuri Leonidovich VOROBYOV

77 
Svetlana Sergeevna ZHUROVA

78 
Anatoly ANTONOV

79 
Sergey CHEMEZOV

80 
Andrei KARTAPOLOV

81 
Dmitry KISELYOV

82 
Iosif KOBZON

83 
Valery KULIKOV

84 
Aleksey NAUMETS

85 
Alexander NOSATOV

86 
Valery RASHKIN

87 
Igor TURCHENYUK

88 
Alexander ZALDOSTANOV

89 
Aleksandr DUGIN

90 
Pavel KANISHCHEV

91 
Andrey KOVALENKO

92 
Eduard IOFFE

93 
Aleksander OMELCHENKO

PART 2 Entities

1 
Aktsionerny Bank Russian Federation (also known as Bank Rossiya)

2. and 3 
[Repealed, SOR/2014-204, s. 3]

4 
Aquanika

5 
Avia Group LLC

6 
Avia Group Nord LLC

7 
CJSC Zest

8 
InvestCapitalBank

9 
JSB Sobinbank

10 
Sakhatrans LLC

11 
SMP Bank

12 
Stroygazmontazh

13 
Stroytransgaz Group

14 
Stroytransgaz Holding

15 
Stroytransgaz LLC

16 
Stroytransgaz OJSC

17 
Stroytransgaz-M LLC

18 
The Limited Liability Company Investment Company Abros

19 
Volga Group

20 
Almaz-Antey

21 
Federal State Unitary Enterprise State Research and Production Enterprise Bazalt

22 
JSC Concern Sozvezdie

23 
JSC MIC NPO Mashinostroyenia

24 
Kalashnikov Concern

25 
KBP Instrument Design Bureau

26 
Radio-Electronic Technologies

27 
United Shipbuilding Corporation

28 
Dobrolet (also known as Dobrolyot)

29 
Russian National Commercial Bank

30 
OJSC Dolgoprudny Research Production Enterprise (DNPP)

31 
JSC Kalinin Machine-Building Plant (MZiK)

32 
Mitischinskii Machine-Building Plant OAO (MMZ)

33 
Institute of Instrument Design (NIIP)

34 
Marine Scientific Research Institute of Radioelectronics “Altair” (MNIIRE “Altair”)

35 
Public Movement “Novorossiya”

36 
Eurasian Youth Union

37 
JSC Sirius

38 
JSC Tula Arms Plant

39 
JSC United Aircraft Corporation

40 
Marshall Capital Fund

41 
Night Wolves Motorcycle Club

42 
OAO JSC Chemcomposite

43 
OAO Wysokototschnye Kompletski

44 
OJSC Stankoinstrument

45 
OPK Oboronprom

46 
Inresbank LLC

47 
JSCB Mosoblbank OJSC

48 
OAO Volgogradneftemash

49 
Izhevsky Mekhanichesky Zavod JSC

50 
JSP SPA Izhmash

51 
JSC Technopromexport

52 
Technodinamica Holding, JSC

53 
JSC Tecmash (also known as Tehmash)

54 
Ruselectronics, JSC

55 
Shvabe Holding, JSC

SOR/2014-62, ss. 1, 2;
SOR/2014-65, ss. 1, 2;
SOR/2014-98, ss. 2, 3;
SOR/2014-103, s. 1;
SOR/2014-108, s. 1;
SOR/2014-171, s. 2;
SOR/2014-184, ss. 12 to 14;
SOR/2014-195, ss. 1, 2;
SOR/2014-204, ss. 2 to 4;
SOR/2014-316, s. 5;
SOR/2015-39, ss. 1, 2;
SOR/2015-178, ss. 1, 2;
SOR/2016-50, ss. 2, 3.

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SCHEDULE 2(Sections 1, 2.1, 3.1, 3.2 and 8)Entities

1 
Gazprombank OAO

2 
VEB

3 
VTB Bank OAO

4 
Bank of Moscow

5 
Russian Agricultural Bank (Rosselkhozbank)

6 
Sberbank

SOR/2014-184, s. 15;
SOR/2014-195, s. 3;
SOR/2014-204, s. 5.

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SCHEDULE 3(Sections 1, 2.1, 3.1 and 8)Entities

1 
OAO Novatek

2 
Rosneft

3 
OJSC Gazprom

4 
OJSC Gazprom Neft

5 
OJSC Surgutneftegas

6 
Transneft OAO

SOR/2014-184, s. 15;
SOR/2015-39, s. 3;
SOR/2015-178, s. 3.

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SCHEDULE 4(Subsection 3.3(1))Goods

Note: The Harmonized Commodity Description and Coding System codes (published by the World Customs Organization) set out in column 2 are provided for reference purposes only.

Column 1
Column 2

Item
Goods
Harmonized Commodity Description and Coding System code

1
Seamless stainless steel line pipe of a kind used for oil or gas pipelines
730411

2
Seamless iron or steel line pipe of a kind used for oil or gas pipelines, other than line pipe made of stainless steel or cast iron
730419

3
Seamless iron or steel drill pipe of a kind used in drilling for oil or gas, other than drill pipe made of cast iron
730422 and 730423

4
Seamless iron or steel tubing of a kind used in drilling for oil or gas, other than tubing made of cast iron
730429

5
Iron or steel line pipe of a kind used for oil or gas pipelines that has circular cross-sections and an external diameter exceeding 406.4 mm
730511, 730512 and 730519

6
Iron or steel casing of a kind used in drilling for oil or gas that has circular cross-sections and an external diameter exceeding 406.4 mm
730520

7
Welded iron or steel line pipe of a kind used for oil or gas pipelines that has an external diameter not exceeding 406.4 mm, other than line pipe made of cast iron
730611 and 730619

8
Welded casing and tubing of a kind used in drilling for oil or gas that has an external diameter not exceeding 406.4 mm and is made of flat-rolled steel or iron products, other than casing and tubing made of cast iron
730621 and 730629

9
Interchangeable rock-drilling or earth-boring tools that have working parts made of sintered metal carbides, cermets, diamond or agglomerated diamond
820713 and 820719

10
Power-driven reciprocating positive displacement pumps for liquids, other than pumps with measuring devices, concrete pumps and fuel, lubricating or cooling medium pumps for internal combustion piston engines
841350

11
Power-driven rotary positive displacement pumps for liquids, other than pumps with measuring devices and fuel, lubricating or cooling medium pumps for internal combustion piston engines
841360

12
Liquid elevators and their parts, other than pumps
841382 and 841392

13
Non-hydraulic or non-self-propelled boring or sinking machinery, and their parts, for boring earth or extracting minerals or ores, other than tunnelling machinery and hand-operated tools
843049 and 843143

14
Parts for lifting, handling, loading or unloading machinery
843139

15

Parts for

(a) derricks, cranes, mobile lifting frames and other lifting machinery;
(b) self-propelled bulldozers, scrapers, graders, levellers, shovel loaders and tamping machines; and
(c) other moving, grading, scraping, levelling, excavating and extracting machinery

8431

16
Parts for hydraulic or self-propelled boring or sinking machinery
843143

17
Mobile drilling derricks
870520

18
Floating or submersible drilling or production platforms
890520

19
Fire-floats, lightships and floating docks or cranes, other than dredgers
890590

SOR/2014-316, s. 6.