Canada slaps new sanctions on Russian companies

WASHINGTON, Mar 21 (PRIME) -- Canada has added 14 Russian companies, including civil and military equipment and machinery producer Izhmash and power engineering company Technopromexport, and 5 individuals to list of sanctions that were imposed due to the Ukrainian crisis, the Canadian Foreign Ministry said in a statement on March 18.

“Today’s steps support wider international efforts to seek a diplomatic resolution to the crisis in Ukraine. By engaging with Russia on the one hand and demonstrating our firm resolve on sanctions on the other, we strengthen our collective ability to hold them to account. I have instructed Global Affairs Canada to update engagement policies accordingly,” the ministry quoted Minister Stephane Dion as saying.

“As agreed by G7 leaders, Canada believes sanctions should not be lifted until Russia fully implements its commitments under the Minsk agreements,” he said.

The list of sanctioned companies now also includes Inresbank and Mosoblbank, pipeline equipment maker Volgogradneftemash, and state industrial corporation Rostec’s units Technodinamika, Russian Electronics, Shvabe, and Machine Engineering Technologies Holding. The ban list also includes the Crimean ports of Yevpatoria, Feodosia and Yalta, and the Yalta film studio.

The list of banned individuals was expanded by Deputy CEO of arms producer Kalashnikov Eduard Ioffe, former Foreign Minister of the self-proclaimed Donetsk People’s Republic Alexander Kofman, Oleg Akimov, Alexander Omelchenko, and Pyotr Savchenko.

The Russian embassy in Ottawa said in a statement that the decision to extend sanctions will have long-term negative consequences for relations of the two countries.

“The Canadian government decision to expand existing anti-Russian sanctions is deplorable and runs contrary to its declared intention of shifting to the policy of reengagement on the international arena. Instead of reassessment of failed policies, an unfortunate repetition of a confrontational pattern has occurred which will surely have negative consequences for Russian-Canadian relations,” the embassy said.

“This is not how diplomacy is done and it does not pave the way to an honest and mutually respectful dialogue.”

A representative for Rostec said that the company is still open for cooperation with Canadian companies. “Sanctions hurt the Canadian business first by closing the Russian market for them. In its turn, Rostec is ready for partnership with Canadian companies and is aimed at constructive cooperation,” the representative said.

Under the Minsk-2 agreements signed in February 2015, Ukraine and the self-proclaimed Donetsk and Luhansk republics are to keep a ceasefire and withdraw heavy weapons from the contact line, while Ukraine is to adopt amendments to its constitution considering decentralization, taking into account the two regions. The sides are also to agree on elections in the two regions. The agreements were to be fulfilled by December 31, 2015.

In 2014, relations between Russia and the West deteriorated to their worse since the Cold War due to a military conflict in Ukraine. The West introduced sanctions against some Russian individuals and firms and further against the energy and banking sectors. In response, Russia limited food imports from some countries, including the U.S., the E.U., Canada, Australia, and Norway.

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