A Russian woman who has been living and working in Canada for the last eight years says her money is locked in limbo due to sanctions against RussiaB次元官网网址檚 largest bank, so sheB次元官网网址檚 taking Scotiabank and the Canadian government to court.

Daria ZubashchenkoB次元官网网址檚 legal action indicates itB次元官网网址檚 not just oligarchs who are caught up in CanadaB次元官网网址檚 financial sanctions, which were imposed in response to RussiaB次元官网网址檚 invasion of Ukraine.

Her lawyer said others have come to him for similar reasons B次元官网网址� but the amounts involved were too small to even justify going to court.

Zubashchenko filed two applications in Federal Court last month, one against the Bank of Nova Scotia, the other naming Global Affairs Canada and the Attorney General as respondents.

She says sheB次元官网网址檚 a Russian citizen who has been living in Canada since 2016, holding a work permit and filing taxes each year.

She graduated from Simon Fraser University with a psychology degree in 2021, and that year, court documents say, she and her mother sold two properties in Russia.

ZubashchenkoB次元官网网址檚 share was nearly $324,000, and in February 2022, the documents say she tried to wire about US$90,000 to her account at the Bank of Nova Scotia from her account at RussiaB次元官网网址檚 Sberbank, which was sanctioned by Canada.

The funds, she claims, never made it into her Canadian account, and she learned in May 2022 after inquiring with Sberbank that the wire transfer had been blocked under CanadaB次元官网网址檚 Special Economic Measures (Russia) Regulations.

About a month later, ZubashchenkoB次元官网网址檚 court application says Scotiabank told her the funds were B次元官网网址渂eing held and disclosed to the Royal Canadian Mounted PoliceB次元官网网址� under the sanctions regulations, and it told her she could apply for a permit to release the money from Global Affairs Canada.

The court documents say her lawyer sent a letter telling Scotiabank that the sanctions donB次元官网网址檛 apply to her, but its B次元官网网址渆scalated customer concerns officeB次元官网网址� allegedly refused to release the funds without a permit from Global Affairs.

Seva Batkin with VancouverB次元官网网址檚 Fraser Litigation Group said he couldnB次元官网网址檛 comment on his clientB次元官网网址檚 situation, but others who have contacted him about money being held-up due to sanctions are B次元官网网址渁ll in essentially the same boat.B次元官网网址�

Batkin said heB次元官网网址檇 had two other people come to him with similar issues, but the relatively small amounts meant the matters had not made it to court.

An appeal to ScotiabankB次元官网网址檚 customer complaints appeals office was also unsuccessful, and ZubashchenkoB次元官网网址檚 application alleges the bank again refused to release the funds in October this year claiming it was B次元官网网址渞equired by the Canadian government to freeze and withhold any payment involving Sberbank.B次元官网网址�

B次元官网网址淲e sympathize with your clientB次元官网网址檚 situation, however Scotiabank is obligated to freeze this payment because of the sanctions on the bank the payment was initiated from,B次元官网网址� the bankB次元官网网址檚 decision said. B次元官网网址淎t this time, there is nothing further Scotiabank can do with respect to releasing the funds as the Bank is following its legal obligations.B次元官网网址�

The applications say the bank said it was B次元官网网址渦nable to assistB次元官网网址� with the permit process through Global Affairs, and though the agency has acknowledged her permit applications made in June 2022 and June 2024, it has allegedly B次元官网网址渇ailed or refused to adjudicateB次元官网网址� them.

ZubashchenkoB次元官网网址檚 applications say she isnB次元官网网址檛 subject to the sanctions and the funds did not benefit Sberbank in any way.

The regulations impose duties on banks to B次元官网网址渄etermineB次元官网网址� if funds are owned or controlled by sanctioned people or entities, and to disclose information about any transactions involving them to the RCMP, the applications say.

B次元官网网址淐ontrary to the position taken by (Scotiabank), these provisions do not impose a duty on banks to withhold funds,B次元官网网址� Zubashchenko claims.

In an emailed statement, Scotiabank said it B次元官网网址渃omplies with all applicable sanctions in the jurisdictions in which it operates. Given this matter is before the courts, we cannot comment further.B次元官网网址�

Global Affairs Canada said in an emailed statement that the minister of foreign affairs can grant permits to allow B次元官网网址渟pecific transactions or activities, otherwise prohibited by Canadian sanctions, to take place.B次元官网网址�

The permits are only granted B次元官网网址渋n exceptional circumstances and are assessed on a case-by-case basis,B次元官网网址� and theyB次元官网网址檙e designed to B次元官网网址渕itigate against possible unintended consequences of Canadian sanctions.B次元官网网址�

It said it canB次元官网网址檛 release information about permit applications to B次元官网网址渞espect privacy and commercial confidentiality.B次元官网网址�