The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry has issued a policy statement indicating that:
- any proposed investment by direct or indirect Russian investors, where “net benefit” clearance is required under the Investment Canada Act (the “ICA”) will only be provided on an exceptional basis; and
- any proposed investment (regardless of dollar value) that has ties, direct or indirect, to any individual or entity associated with, controlled by or subject to influence by the Russian state, will lead to a national security review.
This policy is effective immediately and will be in effect until further notice.
It is expected that the implementation of this policy may lead to longer review periods and may require non-Canadian investors to submit detailed information setting out corporate data, structures and financing relationships in connection with direct and indirect investors, beneficial owners and trusts.
It is worthy to note that in respect to investments that raise national security concerns, an update to the Guidelines on the National Security Review of Investments was announced in March 2021. The update included significant changes to investment criteria subjecting proposed investments to enhanced scrutiny under the ICA.
These cumulative changes are indicative of the Government’s efforts to further bolster Canada’s economic and national security. Accordingly, potential implications of the ICA’s national security provisions and related guidance should be considered early when contemplating a proposed investment in Canada.
Should you have any questions or require further information, please do not hesitate to contact the authors of this article.
This Miller Thomson publication provides a general overview of the subject matter and is to be used for educational and/or non-commercial purposes only. This publication is current as of the date of publication, but with the passage of time and new legal developments, the information provided above may no longer be relevant. Any information, insights or guidance provided in this publication does not constitute legal advice. If you require legal advice, please contact a member of the Miller Thomson team.