Canadian residents are pleading with Ottawa to release assets frozen after sanctions were imposed on banks.
Canada’s economic measures against Russia — which are meant to target the assets of wealthy oligarchs and government officials — are hitting the personal finances of people with no ties to the Putin regime, CBC News has learned.
Some Canadian residents who have no connections to the Russian government and don’t support President Vladimir Putin’s war on Ukraine say their personal savings have been frozen because of how Global Affairs Canada administers its sanctions.
Acting in tandem with other Western allies, Canada has been blocking all financial dealings and freezing Canadian-held accounts linked to a list of sanctioned individuals and business entities — a list that now runs to over 2,100 names.
CBC News has spoken to four individuals who are not named on this list and are not accused of supporting Putin’s regime. They say they can’t access tens of thousands of dollars in personal savings because the major banks they and their families dealt with in Russia and Kazakhstan were caught up in Canada’s sanctions.
“I support Ukraine in this. A lot,” said Natasha, who’s originally from Belarus but moved to Saint Petersburg for university. She said she and her husband were offered jobs in Canada’s tech sector and left Russia in 2020, looking for a “better and safer life.”
CBC News has agreed not to use her last name or show her face because she’s concerned about her job security.
Natasha and her husband have applied for, but have not yet received, permanent residency in Canada. Because of the strong emotions the war in Ukraine evokes, she said, she also fears online harassment.
In the weeks before Russia invaded Ukraine, Natasha worried about losing the savings she and her husband left behind in Alfa-Bank, Russia’s largest private bank — between $80,000 and $133,000 Cdn, she said.
“Because of the history of where I come from, I just thought that it would be very risky to have anything there,” she said.
She began the process of moving her money to a Canadian account. But the transfer wasn’t complete by Feb. 24 — when Ottawa’s sanctions barred Canadians from doing business with Alfa-Bank. Her money was blocked and frozen.
Her application for an exemption is now part of a growing backlog at Global Affairs, as non-sanctioned individuals plead for ministerial permits to release their personal savings.
“Maybe [Canadian government officials] don’t have enough time to dig into this and to actually see that regular people who are already here, who pay taxes and work hard and are part of this community here, are also affected. And it’s just not fair,” Natasha said.
It’s also not clear that the impact of Canada’s sanctions on non-oligarchs like Natasha is actually accomplishing anything.
‘Absolutely unfair’
“When we look at the purpose of economic sanctions … they are implemented to change behaviour, and in this case to change the behaviour of the Putin regime regarding the invasion and continued war in Ukraine,” said John Boscariol, a trade lawyer who represents businesses and individuals affected by sanctions regulations. (He has not been retained by any of the individuals interviewed for this story.)
“Freezing these personal remittances … [for example] that happened to be sent by grandparents to their grandchildren, do not change and will never change the behaviour of the Putin regime,” he said. “It’s just an untenable situation and absolutely unfair for those that are caught up in it.”
Trade lawyer John Boscariol: “It’s just an untenable situation.” (Keith Whelan/CBC)
Last month, the RCMP reported that over $122 million Cdn in Canadian assets had been frozen since Russia invaded.
But the RCMP’s tracking doesn’t distinguish between the wealth of oligarchs and the more modest savings Natasha and her husband hoped to use for a down payment on a home.
They aren’t the only small fish caught up in Ottawa’s sanctions net.
Svetlana’s employer transferred her from Moscow to Toronto in 2021. She recently became a permanent resident of Canada. Fearing both for her employer and her personal security, she also asked that her surname and image not appear in this article.
“While I was opening my first bank account, which was obviously one of the first things you do when you come to a new country, I was told that if anything’s wrong with my work permit, then my account’s going to be terminated,” she said.
That’s why she left about $39,000 Cdn in personal savings behind in Russia — a nest egg she reported to Canadian officials during her immigration process to prove she had the means to support herself.
A ‘night full of tears’
“I had signs of severe depression. Life back in Russia was not easy,” Svetlana said. “After I moved to Canada, I had hopes that I could build a better life here. Less stressful, at least.”
A doctor advised her not to follow the news too closely to help manage her stress. On the night Russia invaded Ukraine, she was out for dinner with a Ukrainian friend.
“I got back home and he texted me: ‘Do not read anything. Do not open newsfeeds. Like, just don’t do it.’ And of course I did that immediately after I got that message,” she said.
After a “night full of tears,” she said, she contacted her Alfa-Bank branch back in Russia at 3 a.m. Toronto time to pull her money out. Mere hours later, Prime Minister Justin Trudeau and his ministers stepped in front of microphones to announce Canada’s new sanctions.
Svetlana’s money never arrived. Just like Natasha’s, it was blocked in transit and never reached her Canadian account — but Alfa-Bank says it no longer holds it. She’s struggled to figure out what happened.
People stand in line to withdraw money from an Alfa Bank ATM in Moscow, Russia on Feb. 27, 2022. Russians flocked to banks and ATMs shortly after Russia launched an attack on Ukraine and the West announced crippling sanctions. (The Associated Press)
Alfa-Bank suggested to her weeks later that her transfer “most likely” was frozen by the Canadian government. It directed her to a website where she could apply for an exemption.
Global Affairs Canada confirmed it received her application but never explained why her savings are frozen. Svetlana said the only feedback she got from the department was an auto-reply e-mail thanking her for her patience as the department faces a backlog of requests.
“What frustrates me the most is that I don’t see any actions. They do not communicate, they do not provide any time estimations, so we just don’t know what to expect,” she said.
“I did nothing wrong.”
Russian citizens aren’t the only ones being kept from their savings by Canadian sanctions.
Darya — who also spoke to CBC News on the condition that her last name be withheld — is working and raising two young kids, aged five and eight, with her husband in Winnipeg. Their immigration was approved under the provincial nominee program earlier in the pandemic, but they couldn’t move to Canada from Kazakhstan until near the end of 2021.
Darya said she doesn’t support Vladimir Putin either. Her mother is of Ukrainian descent.
When they sold their property in Kazakhstan, they brought some of the proceeds with them and left the rest with Darya’s brother, to transfer later.
An apartment building heavily damaged by a Russian missile strike in Dnipro, Ukraine on January 14, 2022. Scenes like this one drove Canada and other allies to impose heavy sanctions on wealthy Russians – sanctions that appear to be landing wide of their targets. (Valentyn Reznichenko/Telegram/Reuters)
When they needed the rest of their money, her brother discovered that only one local bank could send a Swift transfer abroad: Sberbank Kazakhstan, a subsidiary of a Russian state-owned bank that’s been blacklisted by Canada.
Although it was once part of the Soviet Union, Kazakhstan is now an independent country with its own financial system. The bank told her brother that Canadian sanctions would not affect the transfer. But the funds never made it to Darya’s account in Canada.
She applied to Global Affairs for an exemption to release the money — tens of thousands of dollars — in late March. The department told her that her application would be considered. Since then, silence.
“Now it has been ten months and we have nothing,” Darya said. “For us, it’s a large amount of money, and we earned this money in Kazakhstan.”
She said she and her husband were turned down for a Canadian mortgage because they didn’t have enough for a down payment.
“My immigration now … it’s not so pleasant,” she said.
‘We’re slowly losing hope’
Madina Muslimova is another permanent resident of Canada who moved to Toronto from Kazakhstan in 2018.
She’s now working while raising a toddler on her own. She hopes to return to school to do a master’s degree. Her parents, now in their 70s, recently sold some assets so they could help her out financially.
Her mom has a visitor’s visa and comes to help out, but she requires medical treatment that the family must pay for out of pocket while she’s in Canada. Which is why her family tried to move a six-figure sum into Madina’s Canadian account.
Just like Darya, they learned the hard way that Sberbank Kazakhstan wasn’t excluded from Canada’s regulations.
“My parents chose that bank,” Madina said. “It was just across the street … they thought it was stable.”
The Kazakh subsidiary was sold and rebranded last summer to escape from Russian sanctions, but that move came too late for Madina’s family — their funds appear to be frozen too.
Canada’s Russia sanctions snag people with no ties to Putin
15 hours ago
Duration2:31
Canada’s sanctions against Russia have caught up not just oligarchs but Canadian residents who say they have had their assets frozen despite having no ties to Vladimir Putin’s regime.
“I still have not received any clarification about where my funds are,” Madina said. “We relied on that money … I think we’re slowly losing hope, to be honest.”
CBC News asked Foreign Affairs Minister Mélanie Joly what her department was doing to manage its backlog of sanctions exemption requests.
“Our goal is to really target Putin and his enablers. That has been our strategy for Canada [and] for all our allies as well,” the minister said.
“When it comes to individual cases, we’ll do what will work on a case by case basis. You want to make sure that the essence of our approach is respected. And we want to make sure that we have a human approach.”
In a written statement sent to CBC News in December, Global Affairs said that while it cannot speak about individual applications, it “is not seeking to confiscate assets owned by non-listed individuals or entities.”
But how long will it take the department to run due diligence and release the savings belonging to Natasha, Svetlana, Darya and Madina?
“They are really being treated as collateral damage,” Boscariol said.
He said he believes Global Affairs now has a backlog of over 500 applications, with limited resources to tackle it.
Last November, Boscariol appeared before a Senate committee as an expert witness on sanctions measures. He gave the department a failing grade for its administration, saying Canada is missing opportunities to put in place more effective compliance measures.
“There’s some good lessons we could learn from our allies on this in the United States and the United Kingdom,” he told CBC News.
The European Union, for example, has exempted personal remittances for people who don’t own sanctioned companies and aren’t government officials.
Boscariol said he also believes Canada could issue a general licence to cut its backlog much faster.
“Our quarrel is not with the people of Russia,” Prime Minister Trudeau said on the day these sanctions were announced. “It is with President Putin and Russian leadership that has enabled and supported this further invasion of Ukraine.”
“I’m a Canadian resident and these sanctions affected us heavily,” Natasha told CBC News. “So I don’t know how to react to that.”
OTTAWA – Canada isn’t ruling out expelling additional diplomats from India, Foreign Affairs Minister Mélanie Joly suggested Friday following bombshell allegations that Indian diplomats in Toronto, Ottawa and Vancouver were involved in state-sponsored violence targeting Canadian citizens.
Canada expelled the Indian high commissioner and five other diplomats on Monday and when asked at a news conference in Montreal Friday if any more expulsions would follow Joly did not say no.
“They’re clearly on notice,” she said.
The minister said that Canada will not tolerate any foreign diplomats that put the lives of Canadians at risk.
A year ago Prime Minister Justin Trudeau said Canada had clear evidence that Indian agents were connected to the murder of Sikh leader Hardeep Singh Nijjar in British Columbia in June 2023. The allegations suggest India is trying to snuff out a movement to create an independent Sikh state in India known as Khalistan.
On Oct. 14, RCMP Commissioner Mike Duheme rocked the diplomatic relationship further, saying the national police force had launched a special investigative unit last February to investigate multiple cases of extortion, coercion and violence, including murder, linked to agents of the Indian government.
In more than a dozen cases, Canadian citizens were warned about threats to their personal safety and Duheme said the national police force was speaking out to try and disrupt what it deemed a serious threat to public safety.
The six diplomats expelled are persons of interest in the cases, with allegations that diplomats used their position to collect information on Canadians in the pro-Khalistan movement and then pass that on to criminal gangs who targeted the individuals directly.
India has denied the allegations and expelled six Canadian diplomats from New Delhi in return.
Joly said Friday the allegations were extraordinary in Canada.
“That level of transnational repression cannot happen on Canadian soil,” she said. “We’ve seen it elsewhere in Europe, Russia has done that in Germany and the U.K., but we needed to stand firm on this issue.”
The allegations will be studied in more detail by the House of Commons national security committee following a vote by the committee Friday. Joly and Duheme will both be asked to appear, as will Public Safety Minister Dominic LeBlanc
NDP MP Alistair MacGregor, who put forward the motion to launch the study, said the fact the RCMP came out with such “explosive revelations” underscores how serious the situation is.
“The RCMP made a point that they were doing this because some individuals in Canada had their lives directly in danger and the threat reached such a level they felt compelled to ignore the traditional way of going through the judicial process and make these accusations public,” he said.
Canada’s allegations were followed Thursday by charges announced by the U.S. Justice Department against an Indian government employee who is accused in an alleged foiled plot to kill a Sikh separatist leader living in New York City.
U.S. authorities say Vikash Yadav directed the New York plot from India. He faces murder-for-hire charges in a planned killing that prosecutors have previously said was meant to precede a string of other politically motivated murders in the United States and Canada.
The Indian government didn’t immediately provide comment on the U.S. charge.
American-Canadian lawyer Gurpatwant Singh Pannun, a lawyer and dual Canadian and U.S. citizen, said in a statement that he was the target of the alleged murder plot in New York. He said he was targeted because he is a lawyer for Sikhs for Justice and was helping to organize votes in a non-binding referendum on the creation of an independent Sikh state.
Nijjar helped organize a similar referendum in B.C. prior to his death.
The House committee Friday also voted to call Brampton Mayor Patrick Brown to testify, as well as other candidates from the 2022 Conservative leadership contest. A report released in June by the National Security and Intelligence Committee of Parliamentarians (NSICOP) contains a redacted paragraph that details alleged Indian interference in a Conservative leadership contest. A specific year is not mentioned.
The Conservatives have said they have been given no information about any such interference.
The committee is also now considering a second NDP motion calling for all party leaders to apply for a top-secret security clearance within 30 days, along with a Conservative amendment to demand Prime Minister Justin Trudeau release the names of parliamentarians listed in top-secret documents as being engaged in or at-risk of foreign interference.
At the foreign interference inquiry this week Trudeau said Conservative Leader Pierre Poilievre refused to get the clearance that would allow him to access the names of Conservatives from those documents, while Poilievre accused Trudeau of lying and demanded he make all the names public.
Trudeau acknowledged the documents include the names of members of other parties, including the Liberals, but said if Poilievre doesn’t get the clearance that is needed to know who is at risk he can’t take any steps to prevent or limit the impact.
Manitoba Conservative MP Raquel Dancho told the committee that Poilievre getting a briefing would be a “gag order” against criticizing the government on foreign interference.
“We can put this to bed, it’s rapidly devolving into some McCarthy witch-hunt as a result of the prime minister’s actions and we can clear this up today by releasing the names,” Dancho said.
This report by The Canadian Press was first published Oct. 18, 2024.
VANCOUVER – British Columbians go to the polls on Saturday after a too-close-to-call campaign that saw David Eby’s New Democrats and John Rustad’s B.C. Conservatives tangle over housing, health care and the overdose crisis — as well as plastic straws and a billionaire’s billboards.
Forecasters say election day will be soaked in several parts of the province by heavy rain from an atmospheric river system.
But the campaign has already been drenched in negativity, with Eby and Rustad each devoted to telling British Columbians why they shouldn’t vote for the other.
The NDP’s election platform mentions Rustad more than 50 times, compared to only 29 times for Eby, while the B.C. Conservative platform names Eby 50 times, and Rustad only 11 times.
“I hope we never see another election like this,” Eby said this week in Nanaimo, describing the tone of the campaign where he felt compelled to tell voters about controversial public statements made by Rustad and some of his candidates.
“We don’t call people who are gay ‘groomers,'” he said. “We don’t tell Indigenous people that what they experienced in residential schools wasn’t real. We don’t propose that health-care professionals be put in front of an international tribunal similar to the trial of the Nazis called Nuremberg 2.0.”
Rustad, who campaigned in Nanaimo on the same day Eby visited the Vancouver Island city, said the NDP leader has consistently attempted to shift focus away from what he says are the real issues facing the province — mismanagement of the economy, the crumbling health-care system and the ongoing drug overdose crisis that has resulted in more than 15,000 deaths since 2016.
“I don’t know why, I guess as premier he thinks it’s OK to be lying to the people of B.C.,” said Rustad. “The premier of a province like B.C. should be able to be out, being straight up with people and telling them the truth as opposed to lies.”
Regardless of the outcome, the election will go down as a sea change for B.C. politics, with the Conservatives poised to either form government or become the official opposition, after the implosion of the BC United party under Kevin Falcon, who halted his party’s campaign to support Rustad and avoid centre-right vote splitting.
Polls have put the NDP and the B.C. Conservatives locked in a close battle. It’s a remarkable turnaround for the Conservatives, who won less than two per cent of the vote in the last provincial election.
Eby and Rustad spent Friday making last-ditch pitches for support in vote-rich Metro Vancouver.
Eby started in Coquitlam, while B.C. Conservative Leader John Rustad was scheduled to be in North Vancouver.
“We have left nothing on the table,” said Eby, adding every vote will count Saturday. “I have really no regrets about the campaign.”
On Friday, the Conservatives said that if elected they would launch “a full public inquiry” into the use of taxpayer money to buy drugs on the dark web.
That is a reference to a so-called “compassion club” that was operated by the Vancouver-based Drug User Liberation Front to buy drugs including methamphetamine, cocaine and heroin, test it for safety and then sell it to its members.
The club was ultimately shut down and the group’s founders arrested and charged with trafficking.
“This inquiry will seek to uncover who knew what, when they knew it, and what actions were or weren’t taken by the New Democrats, including Premier David Eby,” the party said in a statement.
Rustad was not available to reporters on Friday, but he was holding photo opportunities in Metro Vancouver.
Green Leader Sonia Furstenau was in Victoria, where she is looking to capture a seat in the NDP stronghold of Victoria-Beacon Hill. She has acknowledged the Greens won’t win the overall election, but is hoping to retain a presence in the legislature where the party currently has two members.
The campaign’s only televised debate saw Furstenau tell voters that Eby and Rustad were more closely aligned than people may believe on issues including support for the fossil fuel industry and placing people with mental health and addiction issues into involuntary care.
The month-long campaign has featured regular controversies for the Conservatives surrounding past comments by Rustad and his candidates.
Rustad dropped several potential candidates before the start of the official campaigning period over extreme views posted on social media.
But during the campaign he continued to support Surrey-South candidate Brent Chapman, who called Palestinian children “inbred” and “time bombs” in a 2015 Facebook post.
Eby mentioned Chapman during visits to two mosques in Surrey.
“John Rustad and the B.C. Conservatives are standing with that candidate,” he said at the Guilford Islamic Centre. “They should have got rid of him.”
Eby said the NDP are running two Muslim candidates in the election, including candidate Haroon Ghaffar in Surrey-South against Chapman.
“It’s important to have diverse candidates in the legislature,” said Eby, adding B.C. has yet to elect a Muslim.
Eby faced tough questions from people at the mosque about teaching sex education at schools and the rise of Islamophobia.
Rustad also stood by North Coast-Haida Gwaii candidate Chris Sankey, who suggested vaccines caused AIDS by posting about “Vaccine Acquired Immunodeficiency Syndrome” during the COVID-19 pandemic.
Then there was Vancouver billionaire Chip Wilson, co-founder of the Lululemon athletic clothing line.
Wilson injected himself into the campaign with a series of anti-NDP billboards outside his waterfront Vancouver home, located in Eby’s Vancouver-Point Grey riding.
Eby and the NDP embraced the moment, saying Eby was on the side of ordinary people in B.C. struggling to make ends meet and not the owner of a home assessed at more than $81 million.
Rustad said he supported entrepreneurs like Wilson, but they couldn’t expect a break on their property taxes.
Rustad’s campaign promise to reverse a ban on plastic straws prompted Eby to begrudgingly agree that “paper straws suck,” but he suggested the B.C. Conservative leader was trying to stir up controversy by diverting attention from major issues facing the province.
Election day coincides with an atmospheric river system that is dumping heavy rain across much of the province.
Furstenau used the weather event to highlight her party’s climate promises, saying the Greens are the only party that offers a serious response to the climate crisis.
“It’s very interesting the timing of an atmospheric river arriving right on the moment of this election campaign, an election campaign where we have one party led by a climate denier and another party led by a climate delayer,” she said.
This report by The Canadian Press was first published Oct. 18, 2024.
OTTAWA – The executive team from the Assembly of First Nations will meet in the coming days to discuss how to proceed with new negotiations for a child welfare reform deal after chiefs voted against the government’s proposed $47.8 billion agreement at a meeting in Calgary Thursday.
AFN National Chief Cindy Woodhouse Nepinak, who had helped negotiate the deal and pushed for it to be approved, was blunt in her assessment of the outcome in her closing remarks to the special chiefs assembly Friday.
“We also recognize the success of the campaign that defeated this resolution. You spoke with passion, and you convinced the majority to vote against this $47.8-billion national agreement,” she said.
“There is no getting around the fact that this agreement was too much of a threat to the status quo, to the industry that has been built on taking First Nations children from their families.”
Cindy Blackstock, executive director of the First Nations Child and Family Caring Society which helped launch a discrimination case against Canada that led to the deal, said “that’s an unfortunate characterization of the chiefs taking a look at the agreement with their own experts and own legal staff and making an informed decision that’s best for them.”
“I respect the National Chief, and I look forward to kind of working with her and everyone to make sure that we get this across the finish line,” Blackstock said.
The defeated deal was struck between Canada, the Chiefs of Ontario, Nishnawbe Aski Nation and the Assembly of First Nations in July after a nearly two-decades-long legal fight over the federal government’s underfunding of on-reserve child welfare services.
The Canadian Human Rights Tribunal said that was discriminatory because it meant kids living on reserve were given fewer services than those living off reserve.
The tribunal tasked Canada with reaching an agreement with First Nations to reform the system, and also with compensating children who were torn from their families and put in foster care.
The $47.8 billion agreement was to cover 10 years of funding for First Nations to take control over their own child welfare services from the federal government, create a body to deal with complaints and set aside money for prevention, among others.
Before the deal was announced in July, three members of the AFN’s executive team wrote letters to the national chief saying they feared the deal was being negotiated in secret, and asked for a change in course. They also said the AFN was attempting to sideline the First Nations Child and Family Caring Society from negotiations.
Those concerns largely remained when the deal was announced in a closed-door meeting at the AFN’s last gathering, with chiefs questioning how the reforms will work on the ground, and service providers saying their funding levels will be significantly cut which would impact their ability to do their work effectively.
Blackstock found support from 267 out of 414 chiefs who voted against a resolution calling for the deal to be approved.
Squamish Nation chairperson Khelsilem introduced a resolution Friday calling for a new negotiation mandate from chiefs.
“This is a lesson for the Assembly of First Nations, for the staff and legal, for the advisers, for the portfolio holder who has worked on this deal,” he said.
“The way we got here was not the way we should have done this. There’s a better way forward.”
His resolution, and another one from child welfare advocate and proxy chief for Skawahlook First Nation, Judy Wilson, called for the creation of a children’s chiefs’ commission comprised of leadership from all regions in the country to negotiate a new deal and provide oversight, along with a new legal team.
It also calls for chiefs to be given at least 90 days to review an agreement before voting on it, with the document to be made available in both official languages.
Khelsilem said the new negotiation mandate was developed with about 50 leaders from across the country, and hopes it will set a positive path forward in the best interest of kids in care after a fairly testy special chiefs assembly. He also said the new mandate will address “flaws” highlighted by chiefs across the country, and will ensure there is more transparency.
“We didn’t have to be in a situation where we had to vote down a flawed agreement and then create a direction to be able to get this back on track,” he said to chiefs.
“We didn’t have to be here if the process that was used to create the (final settlement agreement) was a meaningful process that meaningfully respected and consulted First Nations, that allowed for meaningful dialogue to improve that agreement.”
In a statement, a spokesperson for the minister of Indigenous Services said Canada worked closely with First Nations on this deal, and as it was being amended.
“The agreement that chiefs in assembly rejected yesterday is the final product of those close negotiations,” Jennifer Kozelj said.
“Canada remains steadfast in its commitment to reform the First Nations child and family services program so that children grow up knowing who they are and where they belong.”
Blackstock said that Indigenous Services Minister Patty Hajdu or Prime Minister Justin Trudeau ought to have been at the gathering in Calgary if they stood by the agreement.
In a statement Friday, the Assembly of First Nations Quebec-Labrador said they’re grateful for the work that has been done to date, but that chiefs need to work together to amend the deal so it respects diversity of communities and eliminates systemic discrimination.
“As chiefs, we have a sacred responsibility to protect our children and families for the next seven generations,” said interim regional chief Lance Haymond.
Blackstock says that even though the deal was defeated, it doesn’t mean they’re starting from the bottom.
“We have so much to build on, including the draft final settlement agreement,” she said. “This is a reset to ensure that First Nations kids all succeed.”
This report by The Canadian Press was first published Oct. 18, 2024.
