Vol. 148, No. 8 — April 9, 2014

Registration

SOR/2014-65 March 21, 2014

SPECIAL ECONOMIC MEASURES ACT

Regulations Amending the Special Economic Measures (Russia) Regulations

P.C. 2014-296 March 21, 2014

Whereas 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 Act (see footnote a), makes the annexed Regulations Amending the Special Economic Measures (Russia) Regulations.

REGULATIONS AMENDING THE SPECIAL ECONOMIC MEASURES (RUSSIA) REGULATIONS

AMENDMENTS

1. The schedule to the Special Economic Measures (Russia) Regulations (see footnote 1) is amended by adding the following after the heading “PERSONS”:

PART 1

INDIVIDUALS

2. The schedule to the Regulations is amended by adding the following after item 18:

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

PART 2

ENTITIES

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

APPLICATION PRIOR TO PUBLICATION

Statutory Instruments Act

3. 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

Registration

4. 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.)

Issues

Russia has deployed significant military forces to the Ukrainian province of Crimea, beyond the scope of its basing arrangements with Ukraine and in clear violation of Ukraine’s sovereignty and territorial integrity.

Background

On February 27, 2014, in Simferopol, the capital of the Ukrainian province of Crimea, uniformed and heavily armed men seized government buildings and the provincial Parliament. They had removed their insignia and were wearing masks, but their uniforms and equipment strongly suggested that they were Russian soldiers. Acting Ukrainian President Oleksandr Turchynov said that he had placed Ukraine’s armed forces on full readiness because of the threat of “potential aggression.”

On February 28, 2014, Russian troops occupied Crimea’s airports and other strategic facilities while more Russian troops arrived by aircraft. Ukraine’s Interior Minister described the situation as a “military invasion and occupation.”

On March 1, 2014, the Russian troop presence intensified at key locations in the province of Crimea. President Putin asked the Russian Parliament for approval to send troops to Ukraine, without limiting the request to Crimea only, saying that troops were needed to protect Russian lives. Parliament granted his request. Ukraine’s interim President Oleksandr Turchynov accused Russia of aggression, saying Moscow was “trying to provoke” Kyiv into an “armed conflict.”

By March 2, 2014, Russia reportedly had more than 6 000 troops in Crimea, and Ukraine appealed for international help. In response, the G7 suspended preparations for the G8 Summit in Sochi, Russia, scheduled for June 2014.

Between March 2, 2014, and March 14, 2014, Russian forces steadily took operational control of the Crimean peninsula, capturing key installations and chokepoints, and increasing their troop presence to an estimated 20 000.

With the Crimean provincial legislature under Russian military control, the legislature’s Speaker announced legislators had passed a vote of non-confidence in the provincial government of Crimea. The Speaker also announced that legislators had voted to appoint Serhiy Aksyonov as the new prime minister of Crimea. On March 6, 2014, the self-appointed Crimean Parliament adopted a resolution declaring its unanimous decision to become part of Russia, and set a referendum on this question for March 16, 2014.

On March 16, 2014, the referendum was held in Crimea while the province was under the control of an illegal and coercive Russian military presence, resulting in an announced vote of 98.77% in favour of Crimea becoming a subject of the Russian Federation. The following day, members of Crimea’s self-appointed Parliament travelled to Moscow to begin negotiations on accession.

On March 19, 2014, President Putin introduced a bilateral treaty on Crimea’s admission to the Russian Federation and constitutional law to the same effect. The first and second readings were passed in the Lower House on March 20, 2014, and are expected to be approved in the Upper House and signed by President Putin on March 21, 2014.

Acting in coordination with the United States and the European Union, the Governor in Council passed the Special Economic Measures (Russia) Regulations on March 17, 2014, after finding that the situation with respect to Crimea constitutes a grave breach of international peace and security that has resulted or is likely to result in a serious international crisis. Two days later, on March 19, 2014, the Governor in Council amended the Regulations by adding an additional 11 individuals to the list of designated persons.

Objectives

The Regulations Amending the Special Economic Measures (Russia) Regulations (the Regulations) add 15 persons (14 individuals and 1 entity) to the list of designated persons subject to targeted economic sanctions, for violating international law by violating the sovereignty and territorial integrity of Ukraine.

Description

The Regulations add 15 persons (14 individuals and 1 entity) to the list of designated persons under the Special Economic Measures (Russia) Regulations. Any person in Canada and any Canadian outside Canada are prohibited from

Exceptions to the above-noted prohibitions are available for the following:

“One-for-One” Rule

The “One-for-One” Rule applies to this proposal, as there are minimal administrative costs to business, because of the reporting requirement. However, the administrative burden associated with these Regulations is carved out from the “One-for-One” Rule as they address unique, exceptional circumstances.

Small business lens

The small business lens does not apply to this proposal, as there are no costs (or insignificant costs) on small business, and small businesses would not be disproportionately affected.

Consultation

Foreign Affairs, Trade and Development Canada drafted the Regulations in consultation with the Department of Justice and Citizenship and Immigration Canada.

Rationale

The measures contained in the Regulations demonstrate that Canada is extremely concerned about the situation in Crimea. The measures in the Regulations target individuals in positions of power who are responsible for Russia’s military intervention on the territory of Ukraine, in contravention of Russia’s international obligations.

Implementation, enforcement and service standards

Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency. In accordance with section 8 of the Special Economic Measures Act, every person who wilfully contravenes these 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 of not more than five years.

Contact

Jennifer May
Director
East/Southeast Europe Bilateral and Commercial Relations
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 613-992-7991
Fax: 613-995-1277
Email: Jennifer.may@international.gc.ca