The names of the companies and individuals will be announced shortly, a government source said Monday.
The federal government will also announce today that six CF-18 fighter jets Canada is sending to assist NATO operations in Eastern Europe will be stationed in Romania, the source told CBC News.
Prime Minster Stephen Harper announced the planes on April 28 in response to a request made by NATO. The CF-18s are expected to depart Tuesday from Bagotville, Que.
The United States announced a third round of sanctions Monday morning amid increasing violence in eastern Ukraine, slapping sanctions on seven Russian government officials and 17 companies linked to Russian President Vladimir Putin.
The U.S. also revoked licenses for some high-tech items that could be used by the Russian military.
The White House said this round of sanctions is in response to Putin's failure to follow through with the April 17 agreement in Geneva.
The seven individuals will be subject to a freeze on any assets they hold in the U.S. and a ban on travel. The 17 companies assets have been frozen.
More to come