Russian in BC claims Scotiabank unfairly freezes funds over sanctions

In Canada, Daria Zubashchenko, a Russian citizen residing there since 2016, is embroiled in a legal battle against Scotiabank and Global Affairs Canada. She claims that her nearly $324,000 in funds, stemming from the sale of two properties in Russia, is being unlawfully withheld due to sanctions imposed following Russia’s invasion of Ukraine. In February 2022, Zubashchenko attempted to transfer around US$90,000 from her Sberbank account to her Scotiabank account. However, the transaction was blocked as Sberbank is sanctioned under Canadian law, prompting Zubashchenko to seek legal solutions when the funds did not arrive in her account. The wire transfer's blockage forced Zubashchenko to file applications in Federal Court last month against the bank and Canada's government. Zubashchenko has held a work permit and filed taxes in Canada for eight years, completing her psychology degree at Simon Fraser University in 2021. She asserts that the sanctions do not apply to her and contends that her funds do not benefit Sberbank in any manner. The situation raises critical concerns about the implications of financial sanctions on ordinary citizens, not just wealthy individuals associated with sanctioned entities. Despite appeals to the bank's customer complaints office and claims by Scotiabank indicating a legal obligation to withhold the funds, her lawyer argues that the regulations do not mandate such actions. Zubashchenko's applications state that Global Affairs Canada has acknowledged her multiple permit requests but has failed to adjudicate them. According to legal experts, others in similar circumstances have reached out for assistance, but their smaller amounts make legal action impractical. The case highlights the complexities and unintended consequences of sanctions on individuals who may not be directly involved in the political conflicts that lead to such measures.