Canada's Sanctions on Russia - February 2022

By Remitbee - Feb 25, 2022

Following military attacks against Ukraine's sovereignty and territorial integrity, Canada has put up sanctions against Russia.

Canada's Prime Minister Justin Trudeau said that the land borders with Poland, Slovakia, Hungary, Romania, and Moldova will be open to Canadians and permanent residents of those countries. At the same time, Ukrainians who want to immigrate to Canada will be given priority.

During the announcement, officials announced that Canada had made arrangements to ensure the safe passage of any Canadian citizens, permanent residents, and their families still in Ukraine through the land borders. The federal government will set up a dedicated phone line for Ukrainians with urgent queries about moving to Canada. The federal government is also expediting Ukrainian immigration applications to Canada.

Hours after the invasion began, Canadian Prime Minister Justin Trudeau announced further sanctions in Ottawa, those imposed Tuesday.

Who is being penalized?

Trudeau stated that Ottawa had targeted 58 persons and companies, including Russian elites and their families, the Wagner Group's paramilitary group, and essential Russian financial institutions. In light of Russia's "reckless and dangerous military strike," Prime Minister Justin Trudeau stated at a press conference, "we are imposing more, severe penalties."

What sanctions are being imposed?

According to Trudeau, Canada's sanctions will target the Russian Security Council, including the defence, justice, and prime ministers.

Moreover, economic sanctions were also put in place, like halting export permits and cancelling the existing permits, banning Canadians from engaging in purchases of Russian sovereign debt and imposing an asset freeze and dealings prohibition on designated persons such as the Russian elite and other major banks.

In addition, Canada has also imposed the Special Economic Measures Act. Under this law, Canadians, whether based or outside of Canada, are prohibited from entering into transactions, providing financial or related services, and making goods for a designated person whose name is listed in Schedule 1.

What is the process through which they will operate?

Melanie Joly, Canada's Minister of Foreign Affairs, described the country's new sanctions package as one of the "strongest" recently.

According to Joly, Canada prohibits all shipments to Russia that require permits. It is also cancelling current permits and banning any new applications for exports to Russia. The aerospace and technology industries and those in the resource industry will be affected by the penalties as well.

Canadians are now banned from all financial transactions with the two separate Ukrainian regions acknowledged by Vladimir Putin on Monday, Donetsk and Luhansk, on Tuesday by Prime Minister Justin Trudeau.

What is the rationale behind the sanctions?

To limit Putin's "capacity to continue funding this unjustified attack," Trudeau cited the latest sanctions, which also target Russian elites. He said harsh consequences would be for the Russian elites participating in the sanctions.

Joly said that the permit cancellations reach nearly $700 million in lost revenue for the enterprises shipping goods to Russia. "It's time for Russia to put down its weapons and resume communication and diplomacy", Joly added. Joly promised that additional sanctions would be implemented.

For weeks, Western nations have threatened Russia's economy with severe sanctions if Vladimir Putin invades Ukraine. The strategy has been viewed as a deterrent to Russia from pursuing additional military action against its neighbour.

What are the responses from other countries against Russia?

Aside from Canada, several countries have also imposed fresh sanctions against Russia.

On Thursday, British Prime Minister Boris Johnson said that all Russian central banks operating in the United Kingdom, including Russia's second-largest bank VTB Bank, had their assets frozen. In addition, the United Kingdom intends to prohibit Russian firms and the Russian government from raising capital through the United Kingdom's markets.

Japanese Prime Minister Fumio Kishida remarked that Japan's actions would constitute a prohibition of Russian bonds from being issued in Japan, freezing the bank accounts of specific Russian individuals and restricting travel to Japan.

In addition to travel bans and financial sanctions, Prime Minister Scott Morrison also said that Australia will also move Ukrainian visa applications to the "top of the pile."

RemitBee has Paused Money Transactions to Russia

RemitBee is recognized as one of Canada's best remittance services for immigrants. But due to the current situation and government policy, RemitBee has paused transfers to Russia. We will provide service updates as the situation unfolds.

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