Ukraine war: 2 Montreal companies sanctioned by U.S. for alleged ties to Russia
The Canada Border Services Agency says it helped put two Montreal-based companies with alleged ties to the Russian military on a United States sanctions list.
Late last month, the U.S. Commerce Department added the two Canadian companies -- CPUNTO Inc. and Electronic Network Inc. -- to a list of entities that face strict export controls because of their "significant" contribution to Russia's "military and/or defense industrial base."
Both companies are legally headquartered in the Montreal borough of St-Laurent and describe themselves online as sellers of electronic components.
The U.S. government identified both companies as "Russian or Belarusian `military end users,"' banning them from exporting almost any good manufactured in the U.S., as well as intellectual property, such as computer software. Canada, along with the U.S. and other countries, has a imposed a series of sanctions against Russia since its invasion of Ukraine in February 2022.
CBSA spokeswoman Rebecca Purdy said the agency is working closely with the U.S. government, sharing intelligence and targets and conducting joint investigations.
"The CBSA works with the U.S. Bureau of Industry and Security to bolster efforts to address Russia's aggression in Ukraine through stringent enforcement measures; we are restricting Russia's access to technologies and other goods Russia needs to sustain its aggressive military capabilities," she wrote in an email Monday.
The CBSA has reviewed more than 500 shipments heading to Russia since the invasion of Ukraine, she said. "Of those, several dozen have been referred for in-depth examinations, with seven resulting in administrative monetary penalties being levied against exporters, eight shipments being recommended for seizure and three shipments being withdrawn."
The agency did not immediately respond to questions about whether any of those shipments were related to the two companies sanctioned by the U.S.
Neither CPUNTO Inc. nor Electronic Network Inc. responded to requests for comment.
Christian Leuprecht, a professor at the Royal Military College and Queen's University, said it's possible the companies are operating in Canada because it is a well-connected country that manufactures high-end technology. It's also possible, he said, that they are trading elsewhere and using a Canadian registration to avoid suspicion.
Companies can also evade sanctions by leveraging the supply chains of legitimate firms -- removing computer chips from refrigerators or cars and repurposing them for military use by Russia -- Leuprecht said in an interview Tuesday.
Leuprecht, who is also a senior fellow at the Macdonald-Laurier Institute, said Canada's police and intelligence services need to do a better job of fighting sanctions evasion.
"It suggests to me the hypocrisy of the current federal government; we love to announce all these sanctions against Russian entities and yet we can't root out the very companies, in our own country, that are evading sanctions and aiding and abetting sanctions evasion," he said.
Leuprecht said he's not aware of a single RCMP investigation that led to criminal charges for sanctions evasion. With the Canadian Security Intelligence Service largely limited to domestic operations, Canada depends on its allies for information about what Canadian-registered companies are doing abroad, he added.
"We should look at this not as a one-off, but as sort of the canary in the coal mine ... Canada needs to do a lot better and work a lot harder at making sure that this country isn't used to evade international sanctions if the federal government pretends to be serious about its support for Ukraine."
This report by The Canadian Press was first published March 7, 2023.
CTVNews.ca Top Stories
'A beautiful soul': Funeral held for baby boy killed in wrong-way crash on Highway 401
A funeral was held on Wednesday for a three-month-old boy who died after being involved in a wrong-way crash on Highway 401 in Whitby last week.
'Sophisticated' cyberattacks detected on B.C. government networks, premier says
There has been a "sophisticated" cybersecurity breach detected on B.C. government networks, Premier David Eby confirmed Wednesday evening.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.
Biden says he will stop sending bombs and artillery shells to Israel if they launch major invasion of Rafah
U.S. President Joe Biden said for the first time Wednesday he would halt shipments of American weapons to Israel, which he acknowledged have been used to kill civilians in Gaza, if Prime Minister Benjamin Netanyahu orders a major invasion of the city of Rafah.
Canucks claw out 5-4 comeback win over Oilers in Game 1
Dakota Joshua had a goal and two assists and the Vancouver Canucks scored three third-period goals to claw out a 5-4 comeback victory over the Edmonton Oilers in Game 1 of their second-round playoff series Wednesday.
Nijjar murder suspect says he had Canadian study permit in immigration firm's video
One of the Indian nationals accused of murdering British Columbia Sikh activist Hardeep Singh Nijjar says in a social media video that he received a Canadian study permit with the help of an Indian immigration consultancy.
Pfizer agrees to settle more than 10K lawsuits over Zantac cancer risk: Bloomberg News
Pfizer has agreed to settle more than 10,000 lawsuits about cancer risks related to the now discontinued heartburn drug Zantac, Bloomberg News reported on Wednesday, citing people familiar with the deal.
Quebec premier defends new museum on Quebecois nation after Indigenous criticism
Quebec Premier Francois Legault is defending his comments about a new history museum after he was accused by a prominent First Nations group of trying to erase their history.
U.S. presidential candidate RFK Jr. had a brain worm, has recovered, campaign says
Independent U.S. presidential candidate Robert F. Kennedy Jr. had a parasite in his brain more than a decade ago, but has fully recovered, his campaign said, after the New York Times reported about the ailment.