As we have previously reported on here and here, Canada has continued to expand its economic sanctions on Russian nationals, following Russia's invasion of Ukraine, targeting individuals and entities believed to be linked to the Russian regime.
Canada's sanctions have been primarily imposed under the Special Economic Measures (Russia) Regulations (the "Russia Regulations"), the Special Economic Measure Act ("SEMA"), and through other similar regulations targeting persons in Belarus, Ukraine and most recently Moldova. In total these sanctions include asset freezes and financial prohibitions, and even apply to certain listed persons set out in the Schedules within the regulations. These lists change frequently, are hard to get off of, and have impacted more than 2,900 individuals and entities.
Where a person feels that he or she has been unfairly included in these sanctions lists, there is hope, and an avenue to try and become "de-listed".
The Delisting Process
Persons feeling unfairly or improperly included in Canada's sanctions lists can typically apply to be "delisted" (i.e., under section 8 of the Russia Regulations). The Canadian government – through the Minister of Foreign Affairs – is typically required to make a decision on that and the Minister's decision can be challenged in the Canadian Federal Courts.
Makarov v. Canada
In a recent decision of the Federal Court ("FC") in Makarov v. Canada (Foreign Affairs), 2024 FC 1234, the FC dismissed an application for judicial review from a prominent Russian gas trader who sought to challenge the Minister's decision not to recommend his removal from the Russia Regulations. The Applicant initially succeeded in being delisted after renouncing his Russian citizenship, on the basis that the sanctions only applied to Russian citizens. However, on the day of his delisting, he was immediately relisted when the Governor in Council revised the Russia Regulations to "close the loophole" so as to extend sanctions to former Russian citizens.
In upholding the Minister's decision not to recommend delisting, the FC found that the Minster's decision was reasonable.
In the FC's views, the Minister was entitled to the widest deference in making her decision, the Minister was not bound by the strictest rules of evidence, the decision was not subject to testing on criminal or civil standards of proof, and the decision in this case was justified, transparent and intelligible.
Takeaways
Persons feeling themselves unfairly or improperly targeted by Canada's sanctions have a right to apply to be delisted, although the path to delisting will often be a difficult and costly one!
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.