Canada Issues Policy Statement On Investments Linked To Russia Under The Investment Canada Act

In response to the ongoing conflict in Ukraine, on March 8, 2022, the Minister of Innovation released a Policy Statement under the Investment Canada Act ("ICA") indicating that investments by Russian investors will be subject to in-depth scrutiny and prolonged timelines.

Key Takeaways for Business

• Under the ICA, non-Canadian investors are required to submit filings when they propose to acquire control of Canadian businesses. The filings require that the investor identify its country of origin and any material connections to a non-Canadian state or government.
• The policy confirms that the Government of Canada will effectively block investments by Russian investors which are subject to any direct or indirect influence of the Russian Federation for the foreseeable future. Over the last decade, only three Russian investments have been subject to national security reviews. Of these, one was blocked, one withdrawn, and one allowed after review.¹