Canada made it illegal to ship microelectronics to Russia. So why isn't the law being enforced?

While Canadian authorities and the federal government are aware of numerous cases of companies and individuals directly and indirectly supplying Russia with illegal microelectronics since the start of the full-scale invasion of Ukraine, they have so far done little to enforce Canada's laws.

In an international scheme involving shell companies and layers of shipping agents, the Kremlin has managed to purchase and import at least a billion dollars of sanctioned technologies from around the world that it desperately needs to power its war machines.

"Due to Western sanctions and restrictions on technology and components needed to carry on its ongoing invasion of Ukraine," said Lucas Webber, a New Brunswick-based analyst and geopolitics expert with Tech Against Terrorism, "Russia is finding creative ways to tap into external industries and supply chains."

Everything from missiles to drones require electronic hardware that Russian industry either cannot produce for itself or cannot make fast enough to feed the demands of its military.

The U.S., Canada and most NATO member-states have levelled sanctions against Russia in light of its war in Ukraine, limiting or outright banning the shipment of microelectronics. 

But beyond endless sanctioning and the pageantry of media conferences, the Department of Global Affairs — and the Trudeau government, writ-large — have done very little to make sanctions evaders a major mandate for federal authorities.

"Despite Russia's ongoing efforts to replace Western components in its weapons with Russian or Chinese alternatives, military experts continue to find many parts produced by Western manufacturers," said Olena Bilousova, a senior research analyst at the Kyiv School of Economics who works with Ukrainian authorities to monitor how the Kremlin makes its weapons.

In June, CBC News revealed a Toronto home address and a Canadian man had been linked to the illegal shipment of more than $80 million worth of microelectronics to Russia.

A few months earlier, CBC News also reported that hackers had obtained supply lists of manufacturers from a Russian arms maker of the electronics it used to build and power one of Russia's most important battlefield drones. Two of those companies, Aimtec and EXFO, are based in Montreal. Both companies said they do not supply parts to Russia.

And in March 2023, the United States sanctioned two other Montreal companies when it caught them supplying electronics to Russia, with another company in nearby Brossard quietly being added to the same list in late August.

Despite mounting evidence that Russia is using Canadian companies and people to acquire banned electronics, Canadian authorities haven't laid a single charge relating to the illegal export of sanctioned microelectronics to Russia or acknowledged an investigation into what experts say is a matter of national security. 

"As is the case with many nations, Canada likely has staffing inadequacies, be it in specialist knowledge or quantity," said Webber referring to Canada's law enforcement personnel overseeing sanctions evaders. 

He pointed out that Ukraine's allies also need to synchronize their lists of sanctioned entities to maximize the potential to catch Russian front companies using one nation to get around another.

"There are seemingly also communications and co-ordination issues with other states on sanctions enforcement."