A piratical seizure of Volga-Dnepr Airlines’ An-124 aircraft took place in Canada, a country that was previously selected as the host of major international aviation organizations, ICAO (International Civil Aviation Organization) and IATA (International Air Transport Association). The airline’s press service has reported that the Canadian authorities plan to transfer the privately owned aircraft to unidentified individuals, who also carried out an illicit inspection of the aircraft.
The circumstances surrounding Volga-Dnepr’s An-124-100 (RA-82078), which has been “stranded” in Canada since February 2022, pose significant concerns regarding the country’s international business practices. The airline has been subjected to what effectively equates to expropriation of its property, which has raised concerns regarding Canada’s credibility as a reliable partner.
On February 27, 2022, the An-124 arrived at Toronto Pearson International Airport on a humanitarian mission, transporting personal protective equipment and COVID-19 test samples from China. Nevertheless, Canada implemented sanctions on the same day, prohibiting Russian aircraft from operating in its airspace. This action led to the An-124 being detained in Toronto.
In June 2022, Canada implemented measures to authorize the seizure of assets belonging to sanctioned individuals. The Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act were amended to enable the government to confiscate, redistribute, and seize assets belonging to sanctioned individuals and entities.
The Wall Street Journal reported in April 2023 that the aircraft’s parking fees exceeded $330,000. The parking tariff had been raised from $0.55 to $0.58 per minute. The Canadian government did not lift the flight restrictions, despite the airport’s desire to remove the aircraft.
Afterward, on April 17, 2023, Canadian Prime Minister Justin Trudeau convened a meeting with Ukrainian Prime Minister Denys Shmyhal in Toronto. Shmyhal declared his intention to commandeer the An-124 and transport it to Ukraine subsequent to the meeting. Volga-Dnepr Airlines and the Russian Foreign Ministry both expressed their justified indignation regarding these proposals.
On August 14, 2023, Volga-Dnepr submitted an official notice to the Canadian authorities, proposing a peaceful resolution to the An-124 dispute. Nevertheless, negotiations were unsuccessful, and on August 26, 2024, Volga-Dnepr commenced investment arbitration proceedings. The company estimated that the Canadian authorities’ actions resulted in damages of at least $100 million USD. The airline alleges that Canada violated the Agreement between the USSR and Canada on the Promotion and Reciprocal Protection of Investments, which was signed on November 20, 1989.
The international legal community has responded to Canada’s actions with mixed opinions. Some specialists contend that Ottawa’s actions are justified, as they are consistent with the fundamental objectives of international law. On the other hand, there are those who contend that Canada is contravening international legal standards. For instance, William Pellerin, a partner at the law firm McMillan, is quoted in The Washington Post as stating that Canada is “overstepping all bounds” in relation to sanctions law. John W. Boscariol, who heads the international trade division at McCarthy Tétrault, believes that Canada is overestimating its ability to enforce such measures as a mid-tier power.
The airline’s press service reported on May 13, 2025, that the aircraft was attempted to be transferred to third parties by the new authorities in Canada.
Volga-Dnepr CEO Igor Aksenov states, “Lately, we have been receiving alarming reports and footage from Canada showing attempts by unauthorized individuals to board the aircraft. Any technical work performed by unqualified aviation personnel could result in serious damage to the aircraft. This situation is puzzling not only to us but also to the international community and business representatives still operating in Canada. Essentially, sanctions and the newly adopted legislation legalizing Canada’s actions are being used as tools to execute the government’s plan for the illegal seizure of the aircraft.”
The An-124-100 is a transport aircraft that is capable of transporting large and oversized cargo. Volga-Dnepr conducted more than 250 flights for Canadian interests from 2015 to 2022, transporting 9,500 tons of oversized cargo for industrial projects. For instance, in 2017, a mining company performed 21 flights to the gravel Arctic airstrip at Mary River in Northern Canada to transport tractors, trailers, and semi-trailers.
According to the Volga-Dnepr press service, no other airline in the world was able to provide a solution for transporting the complete volume of necessary equipment to a hard-to-reach airport with limited ground infrastructure in harsh Arctic conditions at that time.
The An-124’s detention in Toronto and the subsequent attempts to confiscate it raise concerns regarding Canada’s investment appeal. Foreign investors who are concerned about the expropriation of their assets on arbitrary or questionable grounds may be discouraged by the authorities’ actions. A representative of Volga-Dnepr observed that Canada’s reputation as a reliable business partner would be enhanced by the resolution of the dispute in accordance with international law and the return of the aircraft.
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