Vol. 148, No. 27 — December 31, 2014

Registration

SOR/2014-317 December 19, 2014

SPECIAL ECONOMIC MEASURES ACT

Regulations Amending the Special Economic Measures (Ukraine) Regulations

P.C. 2014-1499 December 19, 2014

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 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 (Ukraine) Regulations.

REGULATIONS AMENDING THE SPECIAL ECONOMIC MEASURES (UKRAINE) REGULATIONS

AMENDMENT

1. Part 1 of the schedule to the Special Economic Measures (Ukraine) Regulations (see footnote 1) is amended by adding the following after item 54:

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

Registration

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.)

Issues

Pro-Russian separatists continue to destabilize eastern Ukraine and facilitate Russian military action against the Ukrainian government.

Background

Acting in coordination with the United States and the European Union, the Governor in Council has found that the situation in Ukraine 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 (Ukraine) Regulations were approved on March 17, 2014. Further amendments to these Regulations were made on March 19, 2014, April 12, 2014, May 12, 2014, June 21, 2014, July 11, 2014, July 24, 2014, and August 6, 2014.

Meeting on the margins of the United Nations (UN) General Assembly on September 25, 2014, the G7 Foreign Ministers welcomed the Minsk agreements of September 5 and 19, 2014, as an important step towards a sustainable, mutually agreed ceasefire, a secure Russian-Ukrainian border and the return of peace and stability to eastern Ukraine with the establishment of a “special status” zone. However, Russia and the militants it backs have violated previous commitments, including agreements reached in Geneva in April 2014 and in Berlin in July 2014, and there continue to be ongoing reported violations of the Minsk agreements.

Armed militia groups and insurgents currently control large parts of the Donetsk and Luhansk regions of Ukraine. On November 2, 2014, the Donetsk and Luhansk so-called “People’s Republics” held illegitimate “presidential and legislative elections,” in violation of the Minsk agreements. Canada, as well as the United States and the European Union, has condemned these “elections,” which contravened Ukraine’s constitution as well as the terms of the Minsk agreements and were conducted illegitimately in the presence of armed gunmen. Within days, the self-proclaimed leaders of the two “People’s Republics,” Aleksander Zakharchenko and Igor Plotnitsky, were “inaugurated” in Donetsk and Luhansk, wearing presidential sashes in separatist colours. In an inflammatory statement, Plotnitsky has indicated that it is just a matter of time before the “People’s Republics” will join the Russian Federation, and has listed a number of other regions of Ukraine (Vinnytsia, Zaporizhzhia, Kherson, Cherkasy, and Chernihiv) as also wanting to join the Russian Federation.

On November 12, 2014, NATO Supreme Allied Commander Philip Breedlove cited multiple reports of large convoys crossing the border into Ukraine from Russia over a period of days, and assessed that this significant military build-up included Russian artillery, tanks and troops. Monitors from the Organization for Security and Cooperation in Europe (OSCE) have also reported these significant military movements. Ukraine’s National Security and Defence Council has estimated that there are a total of 33 000 Russian and pro-Russian militants operating in eastern Ukraine, including 7 700 Russian soldiers.

According to the Ukrainian National Security and Defence Council, between April 2014 and November 11, 2014, 1 052 Ukrainian soldiers have been killed during the conflict in Ukraine’s eastern regions.

According to the United Nations, pro-Russian insurgents have deliberately targeted public utilities such as water, electricity and sewage plants, and forced essential services, including hospitals and clinics, to shut down. The UN also estimates that over 4 000 persons have been killed, over 6 000 wounded and hundreds of thousands displaced since the Russian-backed militants launched their violent campaign in April 2014. The humanitarian situation is likely to continue to deteriorate with the onset of winter. Briefing the United Nations Security Council on November 12, 2014, Assistant Secretary-General ad interim for UN Political Affairs Jens Anders Toyberg-Frandzen noted that the number of internally displaced persons is expected to increase.

Objectives

The proposed Regulations Amending the Special Economic Measures (Ukraine) Regulations (the Regulations) add nine individuals to the Schedule.

Description

The proposed Regulations add nine individuals to the list of designated persons under the Special Economic Measures (Ukraine) 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) to 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 Canada’s concern about the continuing violation of Ukraine’s sovereignty and territorial integrity.

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

Kevin Hamilton
Director
Eastern Europe and Eurasia Division
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343-203-3603
Fax: 613-995-1277
Email: Kevin.Hamilton@international.gc.ca