Selling Russian-owned assets to pay for Ukraine’s reconstruction may sound like a logical approach to restitution, but as the Canadian government gains new powers to begin this process, questions remain about how it will work, and whether some issues are headed to court.
C-19, the budget implementation bill, received Royal Assent last Thursday. Among its many measures are new powers to seize and sell off assets owned by individuals and entities on Canada’s sanctions list. While the new powers could be used in any international conflict, the Liberal government’s current priority is helping victims of the Russian invasion of Ukraine.
Canada’s stepped-up sanctions powers were discussed with U.S. Treasury Secretary Janet Yellen during her visit to Toronto last week.
“We think it’s really important to extend our legal authorities because it’s going to be really, really important to find the money to rebuild Ukraine,” Finance Minister Chrystia Freeland told Canadian and American reporters. “I can think of no more appropriate source of that funding than confiscated Russian assets.”
That sentiment was shared by Ontario Sen. Ratna Omidvar who proposed her own Senate legislation to enable similar asset seizures two years ago. At the time she was motivated to help the displaced Rohingya population by sanctioning corrupt generals in Myanmar.
“Kleptocrats must pay for their crimes, not through simply being sanctioned and their assets being frozen, but by their assets being repurposed and confiscated,” said Omidvar.
Although C-19 will work a bit differently than her bill, Omidvar still calls it a “good start” and supports the government’s move.
“The question no longer is ‘if we should confiscate,'” the senator said. “The question is: ‘How should we repurpose? … Who’s involved? How do we provide accountability? How do we protect ourselves?'”
Test cases expected
Although some jurisdictions, notably Switzerland, already confiscate and return certain illicit assets, this move by Canada — and potentially other G7 countries meeting in Germany this week — is unprecedented.
Allies agree on the imperative of cranking up more economic pressure on Russian President Vladimir Putin, but it’s still a risky play. Other hostile governments could seize Canadian-owned assets abroad in retaliation. It also may violate customary international law, such as the UN Articles on states responsibility.
The new powers target assets in Canada owned by an individual or entity on the federal government’s sanctions list. Previously, authorities could seize the proceeds of crime. With C-19, they can confiscate the assets of sanctioned individuals whether they’re acquired legally or illegally.
Is that fair? Omidvar anticipates the new powers being challenged in Canadian court. “I keep thinking we need a couple of test cases,” she said.
I’m very excited that Bill <a href=”https://twitter.com/hashtag/C19?src=hash&ref_src=twsrc%5Etfw”>#C19</a>, which includes the essence of the Frozen Assets Repurposing Act, has passed: <a href=”https://t.co/iR1O2oGSCA”>https://t.co/iR1O2oGSCA</a> Thank you to <a href=”https://twitter.com/wrmcouncil?ref_src=twsrc%5Etfw”>@wrmcouncil</a> <a href=”https://twitter.com/lloydaxworthy?ref_src=twsrc%5Etfw”>@lloydaxworthy</a> <a href=”https://twitter.com/AllanMRock?ref_src=twsrc%5Etfw”>@AllanMRock</a> & <a href=”https://twitter.com/fenhampson?ref_src=twsrc%5Etfw”>@fenhampson</a> for helping make this possible! <a href=”https://twitter.com/hashtag/S217?src=hash&ref_src=twsrc%5Etfw”>#S217</a> <a href=”https://twitter.com/hashtag/cdnpoli?src=hash&ref_src=twsrc%5Etfw”>#cdnpoli</a> <a href=”https://twitter.com/hashtag/SenCA?src=hash&ref_src=twsrc%5Etfw”>#SenCA</a> <a href=”https://twitter.com/SenLucieMoncion?ref_src=twsrc%5Etfw”>@SenLucieMoncion</a> <a href=”https://t.co/fCGgPpQR9c”>pic.twitter.com/fCGgPpQR9c</a>
The senator’s original bill proposed seizing and redistributing assets by court order, with a judge adjudicating concerns.
C-19 puts more power in ministerial hands, something that is “faster and nimbler,” Omidvar acknowledges, but also less transparent.
During debate in the Senate, Omidvar called on the government to take “politics out of the equation” so Canada would not be accused of inappropriate distribution of funds, “or worse, appropriation of funds for its own use.”
When asked about the legality of these new powers earlier this month, Justice Minister David Lametti said “you don’t have an absolute right to own private property in Canada,” and compared it to other processes of government expropriation.
Adrien Blanchard, a spokesperson for Foreign Affairs Minister Melanie Joly, told CBC News that “necessary checks and balances” are provided in C-19, including a formal judicial process to forfeit any asset.
“Procedural fairness was a key consideration in the development of these measures, and forfeiture proceedings before a judge are not automatic,” Joly’s spokesperson said.
Privacy rules limit disclosure
Omidvar’s bill would have created a registry with the name of any person or entity associated with a seized asset and its value. There’s no such disclosure requirement in C-19, so this could be a difficult process to track once it starts.
One or more court cases could trigger more public disclosure.
When the RCMP reported earlier this month that Canadian authorities have frozen the equivalent of $124 million in assets so far, it was unable to reveal what these assets are — cash, bonds, cryptocurrency, corporate shares, real estate or other property — because of the Privacy Act.
The minister of foreign affairs may issue permits on a case-by-case basis to authorize activities or transactions that would otherwise be prohibited, but only to people in Canada or Canadians abroad. When asked if any such permits have been issued related to Canada’s sanctions against Russia, Global Affairs Canada would not comment, again citing privacy concerns.
One of the prominent Russian oligarchs on Canada’s sanctions list, Roman Abramovich, holds around 30 per cent of the shares of Evraz, a global steel manufacturer that employs over 1,800 people at its facilities in Western Canada.
CBC News asked Evraz North America whether any of its shares or business properties were among assets frozen by Canada so far, but the company did not respond.
Separate from its powers to seize assets, the budget implementation bill also implements a publicly accessible beneficial ownership registry to make it easier to trace the ownership of anonymous shell companies. That could reveal more about Russian assets in Canada.
However, a business that’s registered provincially instead of incorporated federally would only appear in the national registry if provinces and territories agree to participate — if they don’t agree, there is a potential loophole, Omidvar warned her Senate colleagues during debate.
Who gets the proceeds?
Omidvar’s original bill would have required the recipient of redistributed funds to report back to a court on its use.
C-19 puts the minister of foreign affairs in charge of who gets the money and what happens to it.
“Operationalizing this is going to be a little bit of a challenge,” said fellow senator and former G7 sherpa Peter Boehm. “This is all very, very new.”
The former senior Global Affairs official suggests the government needs to get safeguards in place.
“What is the mechanism? To whom should these assets go? Do they go to individuals? Do they go to state actors?” Boehm said, noting that Canada may want to coordinate with other like-minded countries and UN agencies, like the World Food Program. “There are a lot of questions there… we need to know and the Canadian people would want to know where this money is going and if it’s being properly spent.”
The yacht Amore Vero shown here docked in the Mediterranean resort of La Ciotat, in March, was seized by French authorities after being linked to Igor Sechin, a Putin ally who runs Russian oil giant Rosnef. (Bishr Eltoni/The Associated Press)
The G7 considered asset seizures previously, Boehm said. He expects they could feature in at least behind-the-scenes conversations this week, if not the final communiqué.
“The leaders meetings internationally are timed, I think, very well,” he said.
“Ukraine, historically… has struggled with corruption issues,” said Rachel Ziemba, an adjunct senior fellow with the Centre for a New American Security who advises companies and countries on sanctions policy. “There have been a lot of strides made… but it’s still not at the level of a developed economy.”
Working through the International Monetary Fund, or setting up a trust fund that would vet recipients and add more reporting to the process could add more certainty, she suggested.
Russian central bank has reserves in Canada
Taxpayers in Canada, the U.S. or other countries don’t want to bear the full cost of this war, Ziemba said, but as governments embark on asset seizures they also have to be concerned about the message it sends on what jurisdictions are safe for foreign investment.
“There are a lot of legal questions ahead,” she said.
According to recent reporting on Russian Central Bank reserves, about $20 billion might be held in Canada — a far more significant sum in the context of Ukrainian reconstruction than the $124 million in frozen assets disclosed so far.
“The Russian Central Bank and some of its investment funds over the last decade [were] really focused on trying to reduce its exposure to U.S. dollars,” Ziemba explains. Canadian reserve assets and government bonds were attractive because they were both stable and got more yield than comparable investments in Japan or the European Union.
In other words: a small slice of Canada’s debt is held by Russia. “The only saving grace is that the amount they have is not so much they can hold much leverage,” Ziemba said.
Russia’s central bank is on Canada’s sanctions list. Should these reserves be seized and handed over to Ukraine too?
Yellen’s argued against doing this in the U.S., even though it could provide more funds to rebuild Ukraine.
“That might send a message to other countries that are investing in [international currency and bond] markets,” Ziemba said — think of China’s buying power, for example. “That, I think, is why the [U.S.] treasury department and even the [U.S. federal reserve] are wary of these moves.”
Are asset sales imminent?
Earlier this month, CBC News asked Prime Minister Justin Trudeau whether Canada intended to sell the full amount of assets frozen so far. He declined to answer, saying “there are lots of conversations going on” and Canada was “a long way” from deciding how proceeds would be spent.
But when the Senate foreign affairs committee pre-studied C-19 in May, officials said the government will move quickly.
“The intent is definitely to start identifying assets to pursue and to freeze and forfeit them shortly after Royal Assent is received for Bill C-19,” said Alexandre Lévêque, the assistant deputy minister for strategic policy at Global Affairs Canada.
In its report, that Senate committee said the government needs “to monitor on an ongoing basis the ways in which repurposed funds are used and to learn from the early examples of the new powers being implemented.”
Montreal Alouettes wide receiver Tyson Philpot has announced he will be out for the rest of the CFL season.
The Delta, B.C., native posted the news on his Instagram page Thursday.
“To Be Continued. Shoutout my team, the fans of the CFL and the whole city of Montreal! I can’t wait to be back healthy and write this next chapter in 2025,” the statement read.
Philpot, 24, injured his foot in a 33-23 win over the Hamilton Tiger-Cats on Aug. 10 and was placed on the six-game injured list the next week.
The six-foot-one, 195-pound receiver had 58 receptions, 779 yards and five touchdowns in nine games for the league-leading Alouettes in his third season.
Philpot scored the game-winning touchdown in Montreal’s Grey Cup win last season to punctuate a six-reception, 63-yard performance.
This report by The Canadian Press was first published Sept. 12, 2024.
MIAMI GARDENS, Fla. (AP) — Miami Dolphins quarterback Tua Tagovailoa sustained a concussion for the third time in his NFL career, leaving his team’s game Thursday night against Buffalo after running into defensive back Damar Hamlin and hitting the back of his head against the turf.
Tagovailoa remained down for about two minutes before getting to his feet and walking to the sideline after the play in the third quarter. He made his way to the tunnel not long afterward, looking into the stands before smiling and departing toward the locker room.
The Dolphins needed almost no time before announcing it was a concussion. The team said he had two during the 2022 season, and Tagovailoa was diagnosed with another concussion when he was a college player at Alabama.
Dolphins coach Mike McDaniel said Tagovailoa would get “proper procedural evaluation” and “appropriate care” on Friday.
“The furthest thing from my mind is, ‘What is the timeline?’ We just need to evaluate and just worry about my teammate, like the rest of the guys are,” McDaniel said. “We’ll get more information tomorrow and take it day by day from here.”
Some players saw Tagovailoa in the locker room after the game and said they were encouraged. Tagovailoa spoke with some players and then went home after the game, McDaniel said.
“I have a lot of love for Tua, built a great relationship with him,” said quarterback Skylar Thompson, who replaced Tagovailoa after the injury. “You care about the person more than the player and everybody in the organization would say the same thing. Just really praying for Tua and hopefully everything will come out all right.”
Tagovailoa signed a four-year, $212 million extension before this season — a deal that makes him one of the highest-paid players in the NFL — and was the NFL’s leading passer in Week 1 this season. Tagovailoa left with the Dolphins trailing 31-10, and that was the final score.
“If you know Tua outside of football, you can’t help but feel for him,” Bills quarterback Josh Allen said on Amazon following the game. “He’s a great football player but he’s an even greater human being. He’s one of the best humans on the planet. I’ve got a lot of love for him and I’m just praying for him and his family, hoping everything’s OK. But it’s tough, man. This game of football that we play, it’s got its highs and it’s got its lows — and this is one of the lows.”
Tagovailoa’s college years and first three NFL seasons were marred by injury, though he positioned himself for a big pay bump with an injury-free and productive 2023 as he led the Dolphins into the playoffs. He threw for 29 touchdowns and a league-best 4,624 yards last year.
When, or if, he can come back this season is anyone’s guess. Tagovailoa said in April 2023 that the concussions he had in the 2022 season left him contemplating his playing future. “I think I considered it for a time,” he said then, when asked if he considered stepping away from the game to protect himself.
McDaniel said it’s not his place to say if Tagovailoa should return to football. “He’ll be evaluated and we’ll have conversations and progress as appropriate,” McDaniel said.
Tagovailoa was hurt Thursday on a fourth-down keeper with about 4:30 left in the third. He went straight ahead into Hamlin and did not slide, leading with his right shoulder instead.
Hamlin was the player who suffered a cardiac arrest after making a tackle during a Monday night game in January 2023 at Cincinnati, causing the NFL to suspend a pivotal game that quickly lost significance in the aftermath of a scary scene that unfolded in front of a national television audience.
Tagovailoa wound up on his back, both his hands in the air and Bills players immediately pointed at him as if to suggest there was an injury. Dolphins center Aaron Brewer quickly did the same, waving to the sideline.
Tagovailoa appeared to be making a fist with his right hand as he lay on the ground. It was movement consistent with something that is referred to as the “fencing response,” which can be common after a traumatic brain injury.
Tagovailoa eventually got to his feet. McDaniel grabbed the side of his quarterback’s head and gave him a kiss on the cheek as Tagovailoa departed. Thompson came into the game to take Tagovailoa’s spot.
“I love Tua on and off the football field,” Bills edge Von Miller said. “I’m a huge fan of him. I can empathize and sympathize with him because I’ve been there. I wish him the best.”
Tagovailoa’s history with concussions — and how he has since worked to avoid them — is a huge part of the story of his career, and now comes to the forefront once again.
He had at least two concussions during the 2022 season. He was hurt in a Week 3 game against Buffalo and cleared concussion protocol, though he appeared disoriented on that play but returned to the game.
The NFL later changed its concussion protocol to mandate that if a player shows possible concussion symptoms — including a lack of balance or stability — he must sit out the rest of the game.
Less than a week later, in a Thursday night game at Cincinnati, Tagovailoa was concussed on a scary hit that briefly knocked him unconscious and led to him being taken off the field on a stretcher.
His second known concussion of that season came in a December game against Green Bay, and he didn’t play for the rest of the 2022 season. After that, Tagovailoa began studying ways where he may be able to fall more safely and protect himself against further injury — including studying jiu-jitsu.
“I’m not worried about anything that’s out of my hands,” McDaniel said. “I’m just worried about the human being.”
NEW YORK (AP) — When her husband turns on the television to hear news about the upcoming presidential election, that’s often a signal for Lori Johnson Malveaux to leave the room.
It can get to be too much. Often, she’ll go to a TV in another room to watch a movie on the Hallmark Channel or BET. She craves something comforting and entertaining. And in that, she has company.
While about half of Americans say they are following political news “extremely” or “very” closely, about 6 in 10 say they need to limit how much information they consume about the government and politics to avoid feeling overloaded or fatigued, according to a new survey from the Associated Press-NORC Center for Public Affairs Research and USAFacts.
Make no mistake: Malveaux plans to vote. She always does. “I just get to the point where I don’t want to hear the rhetoric,” she said.
The 54-year-old Democrat said she’s most bothered when she hears people on the news telling her that something she saw with her own eyes — like the Jan. 6, 2021, attack on the U.S. Capitol — didn’t really happen.
“I feel like I’m being gaslit. That’s the way to put it,” she said.
Sometimes it feels like ‘a bombardment’
Caleb Pack, 23, a Republican from Ardmore, Oklahoma, who works in IT, tries to keep informed through the news feeds on his phone, which is stocked with a variety of sources, including CNN, Fox News, The Wall Street Journal and The Associated Press.
Yet sometimes, Pack says, it seems like a bombardment.
“It’s good to know what’s going on, but both sides are pulling a little bit extreme,” he said. “It just feels like it’s a conversation piece everywhere, and it’s hard to escape it.”
Media fatigue isn’t a new phenomenon. A Pew Research Center survey conducted in late 2019 found roughly two in three Americans felt worn out by the amount of news there is, about the same as in a poll taken in early 2018. During the 2016 presidential campaign, about 6 in 10 people felt overloaded by campaign news.
But it can be particularly acute with news related to politics. The AP-NORC/USAFacts poll found that half of Americans feel a need to limit their consumption of information related to crime or overseas conflicts, while only about 4 in 10 are limiting news about the economy and jobs.
It’s easy to understand, with television outlets like CNN, Fox News Channel and MSNBC full of political talk and a wide array of political news online, sometimes complicated by disinformation.
“There’s a glut of information,” said Richard Coffin, director of research and advocacy for USAFacts, “and people are having a hard time figuring out what is true or not.”
Women are more likely to feel they need to limit media
In the AP-NORC poll, about 6 in 10 men said they follow news about elections and politics at least “very” closely, compared to about half of women. For all types of news, not just politics, women are more likely than men to report the need to limit their media consumption, the survey found.
White adults are also more likely than Black or Hispanic adults to say they need to limit media consumption on politics, the poll found.
Kaleb Aravzo, 19, a Democrat, gets a baseline of news by listening to National Public Radio in the morning at home in Logan, Utah. Too much politics, particularly when he’s on social media sites like TikTok and Instagram, can trigger anxiety and depression.
“If it pops up on my page when I’m on social media,” he said, “I’ll just scroll past it.”
___
Sanders reported from Washington. David Bauder writes about media for the AP. Follow him at http://x.com/dbauder.
The AP poll of 1,019 adults was conducted July 29-August 8, 2024, using a sample drawn from NORC’s probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for all respondents is plus or minus 4.0 percentage points.
