Seizure of Volga-Dnepr An-124 in Toronto

Summary#

On June 8, 2023, the government issued the Order Respecting the Seizure of Property Situated in Canada (Volga-Dnepr Airlines or Volga-Dnepr Group): SOR/2023-120 under the Special Economic Measures Act. The Order directs the seizure of an An-124-100-150 cargo aircraft (registration RA-82078, serial 9773054559153) that is at Lester B. Pearson International Airport (CYYZ) in Toronto, because it is owned or controlled by Volga-Dnepr Airlines / Volga-Dnepr Group (listed under Canada’s Russia sanctions).

What it does#

• Seizes the specific aircraft on Canadian soil and bars anyone from dealing with it except the Minister of Public Works and Government Services, who is authorized to take possession and manage or otherwise deal with the plane.
• Uses powers in the Special Economic Measures Act that allow the government to restrain or seize property tied to people or entities listed under Canada’s Russia sanctions.
• Starts a process that could lead to a later court application to permanently forfeit the aircraft; if forfeited, proceeds can be used for reconstruction, restoring peace and/or victim compensation (as described in the Act).

Who's affected#

• Primarily Volga-Dnepr Group and Volga-Dnepr Airlines, which the Order says own or control the aircraft and are listed under the Russia-related regulations.
• The Minister of Public Works and Government Services and related federal agencies responsible for taking control, storing, managing and possibly disposing of the aircraft.
• The Order says it does not expect Canadian individuals or small businesses to be negatively affected. It is unclear from the notice whether any third parties (for example, leaseholders or creditors) have interests in the aircraft; those parties have limited administrative and judicial review rights under the law.

Why it matters#

• This is a concrete enforcement step in Canada’s sanctions response to Russia’s invasion of Ukraine. It shows Canada is using new seizure powers to target assets linked to sanctioned persons or entities.
• If the aircraft is eventually forfeited and sold, its value could be used to help rebuild affected states, support international peace efforts, or compensate victims.
• For people who follow international sanctions, aviation, or Canada–Russia relations, this is an example of how economic and legal tools are being used to increase pressure on sanctioned entities.