Abramovich Funds Frozen in Canada

Summary#

On December 15, 2022, the federal government issued an order that freezes US$26,073,990.35 belonging to Roman Arkadyevich Abramovich. The money is held in an account for Manticore Fund (Cayman) LTD at Citco Bank Canada. The order was published in the Canada Gazette on January 4, 2023.

What it does#

• Orders Citco Bank Canada to restrain US$26,073,990.35 so that no one can deal with or move that money. The amount is also described as about Can$33.3 million.
• Identifies the funds as owned, or held or controlled (directly or indirectly), by Roman Arkadyevich Abramovich.
• Uses powers in the Special Economic Measures Act to make the restraint.
• Leaves open the possibility that the government may later apply to a court to forfeit the money permanently. The order itself is a financial freeze, not a final forfeiture.
• The order is part of Canada’s response to Russia’s invasion of Ukraine and follows Canada’s broader sanctions under the Special Economic Measures (Russia) Regulations.

Who's affected#

• Directly: Roman Arkadyevich Abramovich, the account holder Manticore Fund (Cayman) LTD, and Citco Bank Canada (the bank holding the account).
• Financial authorities and the government departments involved in reviewing and enforcing sanctions.
• According to Global Affairs Canada, Canadians and Canadian small businesses are not expected to be negatively affected because the targeted assets do not involve Canadians. It is unclear from the order whether any other private parties have a legal interest in the funds.

Why it matters#

• A large sum of money is now frozen and cannot be used or moved while the government considers next steps. That restricts access to the funds for the listed individual.
• If the government later wins a court forfeiture, the proceeds could be used for reconstruction, restoring international peace and security, or compensating victims under the Special Economic Measures Act.
• The order shows Canada using its new seizure and forfeiture powers (amended into law on June 23, 2022) to target assets linked to persons sanctioned over the war in Ukraine. This is part of a broader international effort to increase economic pressure on supporters of the Russian government.