“I’m here today to provide information on the arrest of an individual on May 22 of this year that we allege has been violating the Special Economic Measures Act, Russian regulations, by procuring and shipping sanctioned electronic components to Russia,” said Chief Superintendent Chris Leather, officer in charge of criminal operations for the Ontario RCMP.
Canada passed the legislation in 2014 to prohibit financial or property dealings with anyone added to a designated list. In 2022, following Russia’s invasion of Ukraine, the legislation was updated to add prohibitions on specific products being sent to Russia, particularly electronic components that could potentially be diverted to support the Russian war effort.
In Ontario, the RCMP enforces federal laws, including those related to financial and international crimes.
Across Canada, the RCMP has Special Economic Measures Act (SEMA) teams that specialize in investigations of this nature.
“On Oct. 6, 2023, Ontario RCMP investigators executed a search warrant at a residence in Toronto belonging to a businessperson in relation to a CIMA investigation. The investigators had reason to believe that the Toronto businessperson was a central figure in an operation that was procuring and shipping technology to Russia that is subject to the Special Economic Measures Act, Russia regulations,” Leather said.
The electronics were designed for use in drones and are classified as dual-use components, meaning they can serve both civilian and military purposes. They would not disclose whether the parts matched those Russia is seeking for its drone program in the war against Ukraine.
The RCMP allege that an analysis of the evidence indicated the individual was procuring electronic components from manufacturing and distribution companies around the world and shipping them to Asia. Additional evidence gathered from international shipping data indicated the components were then trans-shipped to Russia from businesses operated in Asia.
“Canadian authorities continue to investigate that issue domestically here in Canada. There certainly are elements of his network that remain in place, but I couldn’t say much more than that at this time because of multiple ongoing investigations involving ourselves and our key policing partners, including Toronto police and the Ontario Provincial Police,” Leather said.
