16.05 Canada Eases Russia Sanctions to Defend Business Interests – Report

MOSCOW, May 16 (RIA Novosti) – Canada has refused to impose sanctions against two allies of Russian President Vladimir Putin who have business interests in the country, in a move signaling Ottawa’s split from the US stance, Reuters reported Friday.

“The revelation puts into question the government's tough line on Russia over the crisis in Ukraine,” the report says in comments to the surprise move, which appears to contrast with the official government approach.

Unlike Washington, Canada has not moved against Sergei Chemezov, the head of Russian state defense corporation Rostec, and Igor Sechin, CEO of Russia’s oil giant Rosneft.

Rosneft owns around 30 percent of a Canadian oil field, while Rostec has an aircraft assembly joint venture lined up with Canadian aircraft builder Bombardier Aerospace. The preliminary aircraft sale deal is estimated at $3.4 billion.

A Canadian government source familiar with Ottawa's sanctions strategy told Reuters, commenting on the decision not to go after either Sechin or Chemezov: "Our goal is to sanction Russia, it is not to go out of our way to sanction or penalize Canadian companies."

Relations between Russia and Canada have been steadily deteriorating over the political crisis in Ukraine.

Canada was among the first to join targeted sanctions, including asset freezes and visa bans, imposed on a number of senior Russian officials and businessmen in March whom the West accuses of involvement in Crimea's reunification with Russia.

The Canadian prime minister earlier said that Ottawa could impose sanctions targeting Russian banks.

Moscow has repeatedly stated that the language of sanctions is “inappropriate and counterproductive” and warned its Western partners about the “boomerang effect” that sanctions would have.