Canada Yet to Enforce Sanctions on Microelectronic Flow Into Russia, Report Says

Canada is reportedly aware of the illicit exports of microelectronics to Russia but has done nothing to curb them, reports said.

CBC News reported Oct. 3 that numerous Canadian nationals and companies have been implicated in helping export sanctioned electronics from the nation to Russia, some with charges pressed by the US, but Canada has yet to follow suit.

CBC News cited multiple cases to support its claims, including a June report linking a Canadian man to more than $80 million worth of illegal microelectronics shipments to Russia, and a Canadian-Russian couple charged by the US for directly supplying components used to manufacture Russia’s Orlan-10 drones, where prosecutors said the man has been “purchasing electronic components for Russian military end users for over 12 years.”

CBC News also said two Montreal-based companies, Aimtec and EXFO, were named in a leaked list as manufacturers of components used in Russian drones. Both companies denied supplying components to Russia.

The Royal Canadian Mounted Police (RCMP) confirmed to the news outlet that it had yet to press any charges under Canada’s sanctions regime before adding that it has been cooperating with international agencies to enforce the sanctions.

Lucas Webber, a New Brunswick-based analyst and geopolitics expert with Tech Against Terrorism, told CBC News that “staffing inadequacies” are likely to blame for the nation’s lack of actions.

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“As is the case with many nations, Canada likely has staffing inadequacies, be it in specialist knowledge or quantity,” Webber said.

Webber added that Moscow’s experience in circumventing sanctions also meant a meticulous network that is difficult to trace, as in the case of the Canadian man linked to more than $80 million worth of illegal microelectronics, where an unassuming Toronto residential address was used.

“Additionally, the Russian bureaucracy has a large team of lawyers, agents, assets, and other resources dedicated exclusively to creating multiple, diversified, and dynamic streams of components needed for the Russian [military industrial complex],” said Webber.

The US Disruptive Technology Strike Force, created after Russia’s 2022 invasion of Ukraine to investigate illegal shipments to Russia, told CBC News the agency has been working in coordination with the Canada Border Services Agency (CBSA).

In response, the CBSA said it has been working with its US counterparts “to share information and bolster efforts to address Russia’s aggression in Ukraine.”