Canada cancels $700M in export permits in response to Russian invasion of Ukraine

Canada is cancelling all export permits to Russia in response to the country's invasion of Ukraine, a decision that Canada's foreign affairs minister says will impact companies in the aerospace, technology and minerals sectors.

The cancellation of existing export permits and additional sanctions were announced at a press conference on Thursday with Prime Minister Justin Trudeau, Deputy Prime Minister Chrystia Freeland, Foreign Affairs Minister Melanie Joly and Defence Minister Anita Anand. Joly said that hundreds of export permits are being cancelled, worth more than $700 million. Applications for new permits to export goods to Russia will be rejected.

"No aerospace technology or mineral goods will be sent to Russia," Joly said.

"Together with our allies, we are inflicting severe pain on the Russian regime and the Russian economy... Our goal is to weaken the Russian regime and its economy."

Canada exported $121 million in aerospace products and parts to Russia in 2021, according to Statistics Canada. Total exports to Russia totalled $656 million last year.

Bombardier (BBD-B.TO), which manufactures private jets, may be one of the companies affected by the export cancellations. Chief executive Eric Martel said on Thursday that the company's supply chain will not be impacted by the crisis, and it is checking whether any of its customers may be subject to government sanctions. Between 5 to 6 per cent of Bombardier's deliveries traditionally come from customers in the region, he said.

"We'll monitor the situation closely," Martel told reporters after the company's investor day.

"We'll see what are the sanctions, and we may have... to terminate some of these agreements if there are sanctions on our customers,"

A spokesperson for Bombardier said the company is seeking more details about the latest round of sanctions.

"We continue to monitor and follow all guidelines and sanctions put in place and will not pursue business with sanctioned individuals and entities," Bombardier spokesperson Tinca Stokojnik Prouvost said in an emailed statement.

Canada's second biggest pension fund, the Caisse de depot, said Thursday that it had sold positions in Russia and would avoid exposure to the country as it faces additional sanctions.

The Canadian government announced additional sanctions on Thursday, targeting 58 individuals and entities including members of the Russian elite and major Russian banks. The government is also sanctioning members of the Russian Security council, including its defence minister, finance minister and justice minister.

"These sanctions are wide-reaching and will impose severe costs on complicit Russian elites and will limit (Russian President Vladimir Putin's) ability to continue funding this unjustified invasion," Trudeau said.

With files from Reuters

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

Download the Yahoo Finance app, available for Apple and Android.