OTTAWA – A Federal Court judge has rejected a request from Volga Dnepr Airlines, Russia's largest air cargo carrier, seeking relief from sanctions imposed by the Canadian government. The sanctions and subsequent seizure of the company's Antonov-124 transport plane are a response to Russia’s invasion of Ukraine.
The court case began when Volga Dnepr Airlines filed for a judicial review after being denied a delisting application for sanctions in 2023. The company argued that it has not transported military cargo since 2018 and sought to have its name removed from Canada’s sanctions list. However, the Canadian government firmly opposed this claim, maintaining that the airline played a significant role in aiding the Russian regime in circumventing international sanctions.
In its defense, Global Affairs Canada outlined in a memo that Volga Dnepr Airlines had been instrumental in enabling the Russian government to acquire goods that are either sanctioned or pertinent to sensitive military sectors. Subsequent to this, in October 2024, the then-foreign affairs minister, Mélanie Joly, communicated to Volga Dnepr that its application for delisting would be denied.
In her letter, Joly stated, “Materials that I have reviewed show that you have benefited from contracts and subsidies from the Russian government to assist with activities intended to ease or otherwise circumvent the effects of sanctions imposed against Russia by Canada and its partners.” This assertion highlighted the Canadian government's strong stance against the company, reinforcing its position on the sanctions.
The airline contended in its court application that it is “not complicit in any way with Russia’s military invasion of Ukraine,” claiming that the minister’s decision disregarded crucial documents it had submitted. Nevertheless, the judge ruled that the airline failed to prove that the decision made by the government was unreasonable or lacked procedural fairness, thereby siding with the rebuttal provided by the Canadian authorities.
As of now, the Antonov-124 cargo plane remains grounded at Pearson International Airport, where it has been stationed for over four and a half years. This prolonged status followed Ottawa's closure of Canadian airspace to Russian-registered aircraft in response to the conflict. Meanwhile, Volga Dnepr Airlines is pursuing an international arbitration process to regain control over the aircraft.
The firm has initiated an Investor-State Dispute Settlement arbitration, which is still classified as active. Should it fail to reclaim the plane, it has indicated the intention to seek around US$100 million in damages. This situation emerges amid Canada’s long-term strategy in response to Russian actions in Ukraine, as the federal government has sanctioned over 3,500 entities and individuals since 2014, following Russia's annexation of Crimea.
In a related development, the Liberal government recently announced the appointment of Robert Brookfield as Canada’s next ambassador to Russia. Brookfield previously held the position of director general in the strategic export controls and sanctions bureau at Global Affairs Canada, indicating a continued focus on handling relations with Russia amid ongoing tensions.
