cross-posted from: https://scribe.disroot.org/post/8860921
A Senate bill headed for the House of Commons proposes to give the federal government explicit power to confiscate the assets of foreign states that are held in Canada, a measure that could help repurpose Russian funds for Ukraine’s reconstruction.
Analysts say, however, that Prime Minister Mark Carney, with his majority in the Commons, will have to weigh the risks that Bill S-214 could invite retaliation or scare off foreign state investors and sovereign wealth funds.
Bill S-214, which cleared the Senate foreign affairs committee last week, would allow Ottawa to override the immunity normally granted to foreign states under Canadian law, enabling the government, for example, to target Kremlin assets in the name of righting international wrongs.
The Liberal government said it supports the principle of the Senate bill but has not yet committed to backing it.
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Four years ago, the Trudeau government passed legislation to give Canada the power to confiscate assets of foreigners and foreign entities frozen under sanctions law. Ottawa has used this to go after the holdings of a company it says is owned by Russian billionaire Roman Abramovich with the intent of passing the funds to Ukraine.
But Canada’s State Immunity Act shields the Russian government itself from being pursued in the same way through this country’s courts. So the new bill would create a pathway for the federal cabinet, through an order-in-council, to confiscate foreign state assets.
“This bill gives Canada a powerful tool to support Ukraine and other victims of international aggression by ensuring those responsible pay a real price. Canada would be able to repurpose frozen assets, helping victims pay for recovery and reconstruction,” Ms. Dasko said in a statement.
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