Two Canadian firms have been included in the United States’ sanctions list for allegedly supporting Russia’s war efforts in Ukraine. The US Commerce Department has listed the two electronics distribution companies, Cpunto Inc and Electronic Network Inc, both from Montreal, for “acting contrary to the national security or foreign policy interests of the United States.” This move subjects the Canadian firms to US export restrictions.
Sanctioned for Supporting Russia’s War Efforts
The US and Canadian authorities announced the inclusion of the two companies on the list on Monday. The Commerce Department recently imposed export curbs on almost 90 Russian and third-country companies and prohibited them from buying items such as semiconductors. The US government has called on companies to comply with Russia-related sanctions imposed after Moscow’s invasion of Ukraine. Failure to do so could lead to potential prosecution or enforcement actions.
The Canada Border Services Agency revealed that the two sanctioned companies were identified as part of a “global effort” to support Russia. It worked with the US Bureau of Industry and Security to restrict Russian access to technologies. The Commerce Department list did not specify what the two firms shipped or attempted to ship that triggered the US action.
Canadian Companies Respond
Cpunto’s director, Alexander Yermukov, told CBC News that the company takes this matter “very seriously” and has always acted in good faith without any intention to defraud, deceive, or act maliciously. The company intends to engage further to address the concerns raised but could not provide specific details at this point.
Conclusion
The inclusion of two Canadian companies on the US sanctions list highlights the continued tension between the West and Russia. The US government has taken a strong stance against those who it believes are supporting Russia’s war efforts in Ukraine, and companies must ensure they comply with sanctions or face potential prosecution. The Canadian firms listed must take action to address the concerns raised by the US authorities if they wish to have their export restrictions lifted.
