Author (s):
Alan Kenigsberg, Danielle Chu, Hannah Davis
September 28, 2021
August 9, 2021, Canada announced expanded sanctions against Belarus, imposing sectoral restrictions on activities related to transferable securities and money market instruments, debt financing with a maturity of more than ninety days, insurance or reinsurance products or services, products petroleum and potassium chloride products.
These expanded sanctions represent a marked departure from Canada’s most recent approach to its sanctions against Belarus which, until the recent amendment, were limited to restrictions on transactions or operations carried out with persons and entities whose names appear on the list. People doing business in or around this part of the world should pay close attention to the amended trade policy regime to ensure that they fully comply with the new measures.
context
Canada announced its expanded sanctions on the first anniversary of the Belarusian presidential elections held on August 9, 2020. Canada expressed concern about the presidential elections, noting that they were marked by a systematic crackdown on voters and state-sponsored violence against protesters and journalists, both during the campaign and after the election. Canada also expressed concerns about the forced hijacking of Ryanair flight 4978 of May 23, 2021 and the subsequent arrest of a Belarusian journalist.
Canada’s current sanctions against Belarus
On September 29, 2020, Canada imposed sanctions under the Special Economic Measures Act (Regulations on Special Economic Measures Affecting Belarus) against 11 Belarusian officials.
These sanctions prohibited transactions with those listed individuals, which included:
- carry out a transaction involving property belonging to a person whose name appears on the list or owned or controlled by him or on his behalf;
- enter into or facilitate transactions relating to a prohibited transaction;
- provide financial or related services with respect to any prohibited transaction;
- make goods available to a person whose name appears on the list or to a person acting on his behalf;
- provide financial or related services to or for the benefit of a person whose name is on the list.
Canada subsequently added others to the list of those targeted by these sanctions on October 15, 2020 (31 people), November 6, 2020 (13 people) and the June 21, 2021 (17 people and 5 entities).
Changes to the regulations on August 9, 2021
The most recent change to the Belarus Special Economic Measures Regulations imposes additional sectoral restrictions linked to sectors of activity of great importance to the Belarusian economy and the current administration of the Republic of Belarus.
In summary, it is now prohibited for any person in Canada and any Canadian abroad to carry out, directly or indirectly, a transaction or other transaction involving transferable securities or money market instruments issued by , or in connection with, a) Belarus; b) Belarusbank, Belinvestbank, Belagroprombank or any enterprise controlled by Belarus; c) any person acting on behalf of or on the instructions of an entity referred to in points a) or b), including any transaction or other operation relating to a loan the duration of which exceeds ninety days. Likewise, any person in Canada and any Canadian abroad is prohibited from providing insurance or reinsurance products or services in Belarus or to any business controlled by Belarus or to any person acting on their behalf or according to their instructions.
In addition, the following provisions apply to petroleum products and potassium chloride:
Oil products
Any person in Canada and any Canadian abroad is prohibited from importing, purchasing, acquiring or shipping the affected petroleum products that are exported from Belarus or making them otherwise trade. It is also prohibited to provide Belarus or any person therein with financial, technical or other services, including insurance or reinsurance products or services, in respect of the specified petroleum products that are exported. from Belarus.
The list of affected petroleum products is contained in Part 1 of Schedule 2 of the Belarus Special Economic Measures Regulations and includes petroleum oils or oils obtained from bituminous minerals (other than crude oils); petroleum gas and other gaseous hydrocarbons; certain petroleum waxes and mineral waxes; and certain bituminous products, including bituminous mastics and other bituminous mixtures.
Potassium chloride
Any person in Canada and any Canadian outside Canada is prohibited from importing, purchasing, acquiring or shipping the potassium chloride (potash) products and fertilizers referred to in Part 2 of Annex 2 which are exported from Belarus wherever located or otherwise traded.
The affected potassium chloride products and fertilizers are listed in Part 2 of Schedule 2 of the Special Economic Measures (Belarus) Regulations and include potassium chloride with variable potassium content and certain mineral or chemical fertilizers.
If you require assistance with complying with Canada’s trade regulatory and sanctions regime, please contact a member of Osler’s international trade law group.
–
