PDAC has announced deadline dates for presentation application - this is your chance to take part and present at the World’s Premier Mineral Exploration & Mining Convention in 2023! 

APPLY HERE >>

CECC would be happy to engage with you if you are applying from Eurasia! Please email us at toronto@canadaeurasia.com to get assistance with your applications, business program organization or exhibiting on the ground at PDAC.

Tashkent, Uzbekistan (UzDaily.com) -- On 30 June, a solemn ceremony was held in Tashkent to launch the TradeUZ.com project, the first National e-commerce platform in Central Asia.

The project was implemented by the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan in cooperation with the Ministry of Trade, Industry and Energy of the Republic of Korea (MTIE) and the Korea Institute of Technology Development (KIAT).

The electronic platform will allow small and medium-sized exporting companies from Uzbekistan to easily find trusted and successful foreign partners online to organize the export of their products. And behind this - the expansion of the geography of deliveries, the growth of exports and the development of the country's economy as a whole.

Speaking at the opening ceremony, Deputy Minister of Investments and Foreign Trade B. Rakhimov noted that the successful launch of the TradeUZ platform is ultimately designed to make a significant contribution to strengthening Uzbekistan's position as a country that sets high dynamics for the development of e-commerce in Central Asia. Gratitude was expressed to the Ministry of Trade, Industry and Energy of Korea, the Korea Institute of Technology Development for their assistance in the implementation of such an important project.

To date, TradeUZ.com has information on about 3,000 Uzbek exporters, 10,000 foreign buyers, and more than 30,000 goods.

This project is called the next step towards deepening cooperation between our countries. It will serve to increase the volume of exports of competitive Uzbek products with high added value, and hence the development of the country's economy, - B. Rakhimov emphasized, - and expressed hope that the parties will continue to work in an effort to unlock the untapped potential in the field of digital technologies.

• €17.8 million investment to upgrade irrigation system in the Osh region

• Support for climate-resilient, sustainable agriculture 
• New employment opportunities and economic inclusion

The European Bank for Reconstruction and Development (EBRD) is supporting the Kyrgyz Republic’s efforts to upgrade the irrigation system in the Fergana Valley – the country’s main agricultural area – and make it more climate resilient.

A €17.8 million investment will finance construction work and upgrades to the system used to transport water to irrigated fields in the Osh region of the Kyrgyz Republic. The funds will facilitate essential upgrades to water intakes, main canals and the distribution network. They will also help reduce water losses, electricity consumption and CO2 emissions.

The improved irrigation system will promote sustainable and climate-resilient crop farming and facilitate the creation of jobs in the southern part of the country, where most of the mainly rural population is employed in agriculture.

The project is part of the EBRD’s Green Economy Transition (GET) approach, under which the Bank plans to scale up its climate and environmental finance to more than 50 per cent of EBRD annual investment by 2025. The GET approach is important in the Kyrgyz Republic, one of Central Asian countries particularly affected by hazards related to climate change.

Minister of Finance of the Kyrgyz Republic Almaz Baketayev said: “I would like to thank the EBRD for supporting the development of this water supply system. The support will facilitate delivery of vital water resources to irrigation sites, specifically in the Aravan district”.

Ayten Rustamova, EBRD Regional Head for the Kyrgyz Republic, Tajikistan and Turkmenistan, said: “By financing this project we are promoting more efficient water use, contemporary cultivation practices and sustainable farming. The project will improve food security in Central Asia and enable the creation of new job opportunities in the country’s most populous area.”

As part of the project, the EBRD will also help the SWRA develop training programmes for farmers, supporting the economic inclusion of women.

To date, the EBRD has invested €855 million through 208 projects in the Kyrgyz Republic, with the majority of investments supporting private entrepreneurship. More than €60 million has been invested in 24 water projects across the country to date.

Source: https://www.ebrd.com/news/2022/ebrd-finances-upgrade-to-irrigation-system-in-kyrgyz-republic.html

Authors John W. Boscariol, Martha Harrison, Ljiljana Stanic

As we move into the sixth month of Russia’s illegal invasion and assault on Ukraine, Canada has imposed further sanctions against Russia and Belarus targeting the arms and defence sector. On June 23, 2022, the proposed amendments to the Special Economic Measures Act and Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law) addressed in our May 2, 2022 client alert came into effect, providing the federal government with a new power to seek forfeiture of sanctioned persons’ assets. On June 27, 2022, the Special Economic Measures (Russia) Regulations (“Russia Regulations”) and Special Economic Measures (Belarus) Regulations (“Belarus Regulations”) were further amended to prohibit the export of certain advanced technologies and goods that could be used in the production and manufacturing of weapons by Russia or Belarus. In addition, six senior officials and 46 defence entities were newly listed on Schedule 1 to the Russia Regulations, and 13 senior defence officials and two military entities were newly listed on the Schedule 1 to the Belarus Regulations.

The Belarus Regulations were also updated to add bans on sourcing and supplying luxury goods as well as supplying goods that could be used for the manufacture of weapons. These prohibitions are the same as those imposed under May 18, 2022 amendments to the Russia Regulations.

Read More

CVMR, a group of companies specializing in refining rare-earth metals is building one of its facilities in Amarillo. The facility is expected to be approximately 500,000 square feet on 540 acres off US Highway 60. The City of Amarillo and Potter County recently agreed to a number of tax abatements and location incentive agreements before inking the one-of-a-kind deal.

Company founder Kamran Khozan has more, “This is going to be the first critical mineral refinery ever built in the United States. Right now, we don’t have any such refineries in the United States. We are at the mercy of foreign countries to supply us with refined metals.”

The deal struck between CVMR and the local governments, which is the largest project ever brought to the Amarillo area, will provide CVMR with $20 million for the creation of jobs over 10 years and a 100% tax abatement for 10 years. The project is expected to cost $1.5 billion, and is expected to hire 1,000 workers and generate over $100 million a year in payroll.

On the eve of the 34th meeting of the Foreign Investors Council under the President of Kazakhstan, Kassym-Jomart Tokayev held separate meetings with James Johnson, Executive Vice President of Chevron Corporation, Neil Chapman, Senior Vice President of Exxon Mobil Corporation, and Honorary Consuls of Kazakhstan in Canada – Tim Gitzel, President and CEO of Cameco and Don Streu, President and CEO of Condor Petroleum.

In a conversation with Tim Gitzel and Don Streu, the implementation of joint investment projects in Kazakhstan was discussed. In particular, Cameco’s President told the Head of State about the activities and further plans of the uranium company in our country. Condor Petroleum’s CEO informed about the plans on construction of modular LNG plants in Kazakhstan. The prospects for the development of Kazakh-Canadian cooperation within the Kazakhstan-Canada Business Council were also touched upon at this meeting.

Read the full article here >>

Register HERE >> 

Canada has implemented another two rounds of sanctions against Russia. These latest amendments to the Special Economic Measures (Russia) Regulations  (“Russia Regulations”) came into force on May 18 and May 27, 2022. The respective Regulations can be found on the Canadian Sanctions web page here and here (“Regulations”). In its May 20, 2022 news release, Global Affairs Canada states that the newly adopted measures, including further expansion of the sanctioned persons list and bans on luxury goods and goods that could be used in the manufacture of weapons, are aimed at maintaining pressure on the Russian regime until it is no longer able to wage war, and mitigating the potential for Russian oligarchs to circumvent sanctions.

36 individuals added to the sanctioned persons list

The list of sanctioned persons in Schedule 1 of the Russia Regulations has been expanded with the addition of 36 individuals and four entities. The entities, all operating in Russia’s financial services sector, are:

• Management Company of the Russian Direct Investment Fund JSC
• RVC Management Company LLC
• Russian Agricultural Bank JSC
• Investtradebank JSC

The new group of designated individuals is mostly comprised of Russian pro-Kremlin oligarchs, including their wives, children, ex-wives, and in-laws. Notably, Canada listed Alina Kabaeva, who is reportedly the girlfriend of Vladimir Putin. It also targets family members of Vladimir Putin’s closest ally Gennady Timchenko, including Mr. Timchenko’s wife, two daughters, and his son-in-law. Several family members of Mikhail Fridman are also listed. Further, the new list includes several Sberbank, VTB, and Gazprombank executives.

The Russia Regulations prohibit a very wide range of activities involving listed individuals and entities, including dealings in property owned, held or controlled by or on behalf of listed persons, directly or indirectly facilitating transactions related to such dealings, and providing financial or related services for the benefit of listed persons.

Bans on luxury goods 

The new provisions prohibit any persons in Canada or Canadians outside Canada from exporting, selling, supplying, or shipping goods referred to in Part 1 of Schedule 6, wherever situated, to Russia or to any person in Russia. They also prohibit persons in Canada and Canadians outside Canada from importing, purchasing or acquiring goods referred to in Part 2 of Schedule 6, wherever situated, from Russia or from any person in Russia. These prohibitions will take effect 60 days after they come into force, i.e., by July 26, 2022.

Importantly, the scope of these prohibitions are not limited to imports into and exports from Canada. They also apply to the supply or sourcing of these products anywhere in the world to or from “Russia or any person in Russia”.

There is an exception for personal effects taken by individuals leaving Canada for Russia as well as individuals leaving Russia that are solely for their and their immediate families’ use.

We note that the lists of so-called “luxury” goods that are banned for supply and sourcing purposes are not identical, with the sourcing list being significantly shorter than the supply list (26 entries versus 257 entries respectively). The items on the sourcing ban list encompass mostly seafood items including caviar, liquor (including vodka), and diamonds. The items on the supply ban list are comprised of broader categories of goods, including alcoholic beverages, tobacco and cigarettes, cosmetics, handbags, fur skins, fabrics such as silk, textile products including carpets, sportswear, footwear, luxury clothing and accessories, jewelry, kitchenware, vehicles and art.

The supply and sourcing ban on these goods to and from Russia could potentially have a noticeable impact on affected industries. Global Affairs Canada estimates that together the banned categories represented trade in $75.7 million worth of goods in 2021, and this does not appear to account for any supply or sourcing activities by Canadians in addition to imports into or exports from Canada.

These bans bring Canadian sanctions closer in line with those of the United States and the European Union, both of which banned exports of luxury goods to Russia and import of certain items from Russia in March 2022 (see EU Regulation 2022/428 and US Executive Order 14068).

Ban on supply of goods that could be used for manufacture of weapons 

The Russia Regulations also contain a broad supply prohibition on various goods that could be used for weapons manufacturing. The export, sale, supply, or shipment of any good referred to in Schedule 7, wherever situated, to Russia or to any person in Russia is now prohibited.

Schedule 7 lists 60 diverse categories of goods, including medical devices such as X-rays or artificial respiration or other therapeutic respiration apparatuses, measuring instruments, photographic equipment, thermostats, ships, boats and floating structures, unmanned aircrafts, vehicles, electrical machinery, industrial robots, equipment used in construction, metals and scrap metals, pumps, etc. Notably, it does not appear necessary that these items be specially designed for weapons production or military use in order to be subject to the supply ban. Accordingly, suppliers of any of the listed goods should be carefully reviewing these requirements before shipping to Russia or persons operating in or from Russia.

This list should not be confused with the restricted goods and technologies set out in the Restricted Goods and Technologies List adopted in March 24, 2022. That list also prohibits the supply of a broad range of uncontrolled items, including those in the areas of electronics, computers, telecommunications, navigation and avionics, and marine and aerospace items from export to Russia (see our previous alert on this topic here).

Continue to monitor developments

As Russia’s invasion of Ukraine appears to continue without abatement, we anticipate further expansion of the Russian sanctions programs of both Canada and its allies. We continue to closely monitor these developments. We also anticipate that the Canadian government will release long-awaited guidance on the existing sanctions measures.

Read the article here >>

The latest updates include:

• Export and Import Bans
• Export and Import Restrictions
• Banks and payment systems
• Russian Response
• Key elements to manage the entity's liquidity & solvency

24 kilometres from Kyiv, the town of Bucha, Ukraine, quickly became a frontline in the Ukrainian effort to resist Russian invasion. Russian forces began to withdraw from the region around March 30, purportedly due to resource shortages. Journalists have since gained access to the town and have taken account of what appear to be atrocities involving the killing of civilians. The mayor of Bucha has indicated that over 300 residents have been killed. The Bucha massacre has led to additional discussions around Russian war crimes by the UN Security Council.

With this as backdrop, Canada and several allies continue to increase economic pressure on Russia and its enablers by taking aim at “close associates” of the Russian and Belarusian government for having “facilitated and enabled violations of Ukraine’s sovereignty, territorial integrity and independence”. New Canadian measures which appear to have been prepared prior to the Bucha massacre formally took effect on April 5. Canada’s Foreign Affairs Minister Melanie Joly confirmed the measures demonstrate that “Canada will not relent in holding Vladimir Putin and his enablers accountable for their egregious and illegal actions”.[1]

Canada’s international counterparts have responded to the Bucha massacre

On April 6, the United States announced new sweeping sanctions against Russia directly resulting from the Bucha massacre, that target Putin’s two adult daughters and the wife and daughter of Sergei Lavrov, Russia’s foreign minister, and impose full blocking sanctions on Russia’s largest financial institution (Sberbank) and its largest private bank (Alfa Bank), as well as their subsidiaries.[2] These new blocking sanctions on Russian banks bring the United States into closer alignment with Canadian measures against Russian banks.

The United States also prohibited all “new investments” in the Russian Federation by U.S. persons, though we note that “new investment” is not defined in U.S. President Biden’s Executive Order.[3] Canada may follow suit on this in the days to come.

The United Kingdom further announced it would freeze the assets of Sberbank, and will ban imports of Russian coal by the end of 2022. Outward investments to Russia (worth over $14.4 billion in 2020) will also be prohibited, along with the export of key oil refining equipment and compounds.

Meanwhile, the EU Commission proposed a fifth package of sanctions on April 5, including a prohibition on the import of all types of coal from Russia (worth approximately €4 billion per year), a full dealings ban on four large Russian banks including VTB, as well as export bans and a broader package of measures that would further control trade with Russia.[4] EU ambassadors are presently in the process of meeting to reach a final agreement on the package, including the whether the ban on coal would affect existing contracts or be subject to a phase-in measure.[5]

The new sanctions further add to Canada’s ever-expanding list of designated persons in Russia and Belarus

In Canada, new sanctions took effect on April 5, 2022 by way of amendments to the Special Economic Measures (Russia) Regulations (“Russia Regulations”) and to the Special Economic Measures (Belarus) Regulations (“Belarus Regulations”). A total of 18 additional individuals were added to the Russia and Belarus Regulations Schedule 1 lists, which now total 726 individuals and 136 entities for Russia and 50 individuals and 25 entities for Belarus with whom any person in Canada and any Canadian outside of Canada are largely prohibited from “dealing”, including in respect of listed individuals’ property, the provision of financial and related services, and the provision of goods. Another 206 individuals and 42 entities are listed for Ukraine.

Notable additions to the Russia Regulations list include Viktor Vekselberg, Chairman of Russian conglomerate Renova Group, and a Ukrainian-born Russian-Cypriot multi-billionaire oligarch. Vekselberg is known for his close ties to the Kremlin, having overseen a number of projects to modernize the Russian economy. On April 4, U.S. authorities accused Vekselberg of conspiring to commit bank fraud and money laundering in the negotiations and purchase of a $90 million mega-yacht, which was seized pursuant to a U.S. FBI warrant and executed in Spain.[6] U.S. sanctions also target Vekselberg’s private jet.

Canada also added to its sanctions list Vladimir Potanin, one of the main shareholders in Norilsk Nickel, and Leonid Mikhelson, the founder, chairman and co-owner of natural gas producer Novatek.

Read more >>

Authors

1. John W. Boscariol
2. Martha Harrison
3. Ljiljana Stanic
4. Ashley Taborda