Vol. 148, No. 14 — July 2, 2014

Registration

SOR/2014-172 June 21, 2014

SPECIAL ECONOMIC MEASURES ACT

Regulations Amending the Special Economic Measures (Ukraine) Regulations

P.C. 2014-849 June 21, 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

AMENDMENTS

1. Paragraph 2(a) of the Special Economic Measures (Ukraine) Regulations (see footnote 1) is replaced by the following:

2. Part 1 of the Schedule to the Regulations is amended by adding the following after item 17:

3. Part 2 of the Schedule to the Regulations is amended by adding the following after item 1:

2. Feodosia

APPLICATION PRIOR TO PUBLICATION

Statutory Instruments Act

4. 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

5. 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 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, regulations were passed imposing sanctions on Ukraine and/or Russia on March 17, 2014, and amended on March 19, 2014, March 21, 2014, April 12, 2014, April 28, 2014, May 4, 2014, and May 12, 2014.

During the month of May 2014, pro-Russia separatists seized government buildings, clashed with government forces and captured a number of hostages across eastern and southern Ukraine. On May 3, 2014, violence spread to the southern Ukrainian city of Odessa as clashes resulted in approximately 50 deaths and over 200 injured. The following week, deadly violence erupted in the port city of Mariupol (Donetsk oblast) as gunmen attacked the police station. In Donetsk, gunmen also attacked the Red Cross and held several of its workers on accusations of espionage. Incidents of violence were also reported in Sloviansk, Kramatorsk, Horlivka and other key Ukrainian cities. Ukrainian forces continue their anti-terrorist operations in an attempt to recapture occupied buildings and push back the violent separatists.

On May 11, 2014, two separatist organizations (the Donetsk and Luhansk “People’s Republics”) held illegal referenda, claiming that 89% and 96% of voters respectively, voted in favour of self-rule. Fraud and harassment incidents were reported, including thousands of pre-filled ballots and instances of individuals voting several times. The separatist authorities have stated that they will prevent the presidential elections from being held in the Donetsk region as planned on May 25, 2014. Canada and the international community responded by denouncing the referenda as illegal, and will continue to apply pressure until the situation in Ukraine de-escalates.

Objectives

The proposed Regulations Amending the Special Economic Measures (Ukraine) Regulations (the Regulations) amend section 2 of the existing Regulations and add 10 individuals and one entity to the Schedule.

Description

The proposed Regulations amend section 2 of the Special Economic Measures (Ukraine) Regulations, which describes who may be listed as a designated person. This includes broadening paragraph 2(a) to include persons whose activities obstruct the work of international organisations in Ukraine. This amended category continues to capture all designations that fell within the description in paragraph 2(a) prior to these Regulations.

The Regulations also add 10 individuals and one entity 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 and 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 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

Jennifer May
Director
East/Southeast Europe Bilateral and Commercial Relations
Foreign Affairs, Trade and Development Canada
125 Sussex Drive
Ottawa, Ontario
K1A 0G2
Telephone: 343-203-3603
Fax: 613-995-1277
Email: Jennifer.May@international.gc.ca