Canada's sanctions frustrate Calgary dad with kids in Russia - Action News
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Canada's sanctions frustrate Calgary dad with kids in Russia

When Western democracies cut Russian financial institutionsout of their paymentnetworks, Jason Bronius wasn't expecting Global Affairs Canada to suggestswitchingtoa Chinese bank. For the past year, he's been scrambling to find a way to transfer child support payments to his ex-wife in Russia.

Financial rules make it hard, if not impossible, to transfer funds for things like child support

Jason Bronius is shown standing in Moscow's Red Square with his young son on his shoulders and his daughter posing beside him with her hand in her hip.
Calgary's Jason Bronius, seen here visiting Moscow's Red Square with his two children when they were younger, has struggled to find a way to transfer child support payments to his ex-wife in Russia ever since Canada's sanctions cut off financial services in and out of Russia. (Submitted)

When Western democracies cut Russian financial institutionsout of their international paymentnetworks, Jason Bronius wasn't expecting Global Affairs Canada to suggestswitchingtoa Chinese bank.

He's among several Canadians who have sharedstories with CBC News about how sanctions against Russiaaffectthem here in Canada.

None have any tiesto President Vladimir Putin or the Russiangovernment. None appear on any lists of targeted individuals or entities sanctioned either before or after last year's invasion of Ukraine.

But these Canadians are still caught up inthe design and administration oftheir owngovernment'seconomic sanctions, as the Liberal government continues to sever as many ties to Russia as possible.

"They want to try and isolate the Russian government. Fair enough," Bronius said."Both governments have said fine, we'll just walk away from the global financial system."

But this has hadseriousconsequences for his family. "How would you suggest I get money to my children in Russia?" he said.

The Calgary man's marriage broke down over a decade ago. Hisex-wife, a Russian citizen, made what he calls an "amicable decision" to return to Russiawith their twochildren, who have Canadian citizenship. She had become a permanent resident of Canadabut her mother lived in Russia and she wanted to go back.

Under the terms of their divorce agreement, Broniuspays $2,400 a month to support his daughter, 15, and son, 11. Despite the distance, they'rea big part of his life;he said he triesto speak to them every day.

'It was panic'

He used to load these child support paymentsonto a MasterCard for his ex-wife to spend on whatever they needed. AfterMasterCardandVisapulled out of Russialast year, he tried sending international wire transfers through various banks. But once Canada joined other allies in kicking Russia out ofthe SWIFT payment network, that too was shut down.

"It was panic. We had literally run out of options other than me carrying cash to Russia to get my children their child support," Bronius said.

Personally delivering his court-ordered payments would require him to take several daysoff work and spend thousands of dollars on airfares from Calgary to Moscow on a recurringbasiswhich could costas much as the child support itself.

The Russian government, meanwhile,wouldn't provide his ex-wife with any financial support as a single motherbecause she had a Canadian court judgmentstating Broniuswould pay herchild support.

"The Russian government left me on my own to figure outhow to get money to my kids. And the Canadian government was no help," he said.

Global Affairs suggests Chinese network

One Canadian government official, Broniussaid,suggested he find someoneto carry money to Russia on his behalf,but he wasn't comfortable with theidea.

He also worried that travelling with thousands of dollars in cash could make border officerssuspicious, even if he hada court document laying out his obligation to pay.

Bronius asked his MP, Tom Kmiec, for help. Heshared e-mail correspondence between the MP's office and Global Affairs Canada (GAC) with CBC News.

One consular case management officer from GAC's family unitsuggested Broniusturn to a Chinese bank to get around the Canadian government'ssanctions.

"Open a UnionPay International card (China) and transfer the details for the transfer to the person in Russia," wrote Katia Pouliot.

"I was stunned. I couldn't believe that,"Broniussaid.

People stand in line to withdraw money from an Alfa Bank ATM in Moscow, Russia on Feb. 27, 2022. Russians flocked to banks and ATMs shortly after Russia launched an attack on Ukraine and the West announced crippling sanctions.
People stand in line to withdraw money from an Alfa Bank ATM in Moscow, Russia on Feb. 27, 2022. Russians flocked to banks and ATMs shortly after Russia launched an attack on Ukraine and the West announced crippling sanctions. (The Associated Press)

UnionPay cards, which are issued by a Chinese corporation, are now accepted in over 180 countries. Based on GAC'sadvice, Bronius tried to get a UnionPay cardso he coulduse thatpayment network.

But aBank of China representative from a Calgary branch told Broniusthatbank couldn't transfer his money eitherbecause it didn't want to run afoul of the sanctions.

"Why would[GAC]send me to a Chinese bank when obviously we still have lines of communication with the embassy in Moscow?" he said.

Broniussaid he had receivedassistance onother issues from Canada's embassy, and his ex-wife was willing to take a train into Moscow to receive money there. Butembassy officials,Bronius said,weren't willing tohelp deliver his child support and madeit clear to him they aren't bankers.

Ministerial permit won't help

Broniussaid he learned there's an exemption to allow Canada Pension Plan payments to flow into Russia to support seniors. But there's no such exemption forchild support payments. Broniussaid he thinks that in itsrush to get the sanctions in place, the government didn't carefully considerall the exemptions it would need.

"As of yet, I haven't had anyone from the federal government offer a solution," he said. "They've just washed their hands a bit and allowed me to figure it out."

Although GAC doesn't commenton individual consular cases for privacy reasons, CBC News asked GACgenerally what Canadians should doif they need to transfer funds to or from Russia for urgent andessentialpersonal reasons, now that SWIFT transfers aren't possible.

"Canada's sanctions place prohibitions on the interactions that Canadians abroad and persons in Canada can have with listed individuals and entities," said GAC spokespersonGrantly Franklin.

"Our sanctions aim to apply pressure on foreign actors, not on Canadians. Global Affairs Canada does not provide legal advice to members of the public."

Followinghis MP'sintervention, Broniusobtained a letter confirming it's notprohibited for him to sendchild support to hisCanadian kids in Russia. But it's not clear how GACexpects him to make these payments.

Unlike others who have hadfamily assets frozen by Canadian authorities, he can't apply for a ministerial permit to get his funds flowing.

"It's a Catch-22 situation. They would help me if it was prohibited, but because it's 'non-prohibited' they can't help me,"Broniussaid.

It may not be prohibited to pay child support to someone in Russia, but it has becomepractically impossible to do, so long asfinancial networks remain cut off.

Bronius persevered.He's found a wayat least for now to getmoneyto his ex-wife and kids.

Hedoesn't want to disclosehow he's doing it, however. He's afraidthe Canadian government willturn off that tap, too.