Russian Cargo Carrier Threatens to Sue Canada

On 27 February 2022, three-days after the outbreak of the Russo-Ukrainian conflict, a Volga-Dnepr An-124 landed at Toronto’s Pearson International Airport (YYZ) laden with personal protective equipment to be utilized by the people of Canada. Before the Antonov’s crew could turn the mighty jet and get airborne, Canada closed its airspace to Russian-owned aircraft.

In June 2023, Canada’s Minister of Foreign Affairs, Mélanie Joly, declared the Canadian government had ordered the An-124’s seizure pursuant the nation’s Special Economic Measures Act ordered in direct response to the February 2022 commencement of hostilities between Russia and Ukraine.

Seizure of the An-124 was intended to pressure Russia into putting a stop to what Canada’s Parliament called Moscow’s “illegal war against Ukraine” by straining, ostensibly, Russia’s economy and limiting resources. 

The Volga-Dnepr An-124 stranded at YYZ was the first physical asset seized by Canada’s government under Ottawa’s asset seizure and forfeiture regime, and the second overall seized and restrained under the nation’s Special Economic Measures Act.

Comes now August 2023 and Volga-Dnepr has issued an ultimatum threatening to drag the Canadian government before international arbitrators for purpose of forcing the return of what the airline—which has ties to neither Moscow nor the Russian Federation political machinery, asserts is a stolen asset.

Volga-Dnepr has proposed the dispute over the seized An-124 be resolved “amicably” in accordance with Article 9 and Canada's November 1989 Policy on Encouragement and Mutual Protection of Investments.

Volga-Dnepr’s management stated: "If this dispute is not resolved within six-months from the time Canada receives the notification, Volga-Dnepr will officially initiate arbitration proceedings."

Copies of the notification were forwarded to Canadian Prime Minister Justin Trudeau and several top Parliamentary officials.

Volga-Dnepr added the An-124 at the controversy’s center was seized while conducting a humanitarian flight commissioned by the Canadian government to deliver COVID-19 test kits.

Following the An-124’s June 2023 seizure, Trudeau declared his intention to see the aircraft “forfeited to the Crown.” Trudeau averred Canada’s parliament would work with the Government of Ukraine on options to “redistribute the asset to compensate victims of human rights abuses, restore international peace and security, or rebuild Ukraine.”

By authorizing the seizure of the Antonov 124, Canada alleged it had “reaffirmed that impunity is not an option for those who have profited from Russia’s illegal war in Ukraine.”

Critics of Trudeau’s tactics argued, and argue still, that by seizing a civilian aircraft then engaged in a humanitarian mission requisitioned by Canadian officials, Ottawa likely succeeded only in raising Moscow’s ire.

Founded in 1990, headquartered in Ulyanovsk (Vladimir Lenin’s hometown), and named for two of Russia’s more storied and important rivers, Volga-Dnepr Airlines, LLC operates a 17-aircraft fleet in service of governmental and private-sector organizations in the petrochemical, energy, aerospace, agriculture, and telecommunications industries. The air-carrier also undertakes a significant number of humanitarian missions.

FMI: https://www.volga-dnepr.com/en/