Prime Minister Justin Trudeau visited Ukraine last weekend and announced that Canada had officially seized an aircraft that had been parked on the tarmac at Toronto’s Pearson International Airport since February 2022.
We perceive this act as a cynical and shameless theft, the Russian Foreign Ministry said in a statement released in English on Tuesday.
A year ago, Canada became the first G7 country to enact legislation that not only allows Ottawa to confiscate assets from sanctioned individuals, but also confiscate the money and distribute it to victims of a sanctioned regime.
The law remains unused, but Justin Trudeau said Ottawa plans to start a process to either transfer the plane to Ukraine or sell it for money that would help the country rebuild.
“We will do it as soon as possible, but I can tell you that Ukrainians are very happy that the journey has started,” Canadian Prime Minister said last Saturday.
The Russian-registered Antonov An-124 is owned by the Volga-Dnepr company, which Canada sanctioned in April. It is one of the largest planes in the world, and Ottawa fears it will be used to supply Russia with military equipment for its invasion of Ukraine.
confiscation by order
The government formally impounded the plane by a June 8 cabinet decision.
“I think there was pressure on the government to do something about it because it couldn’t actually be postponed because Russian planes are banned from Canadian airspace,” said William Pellerin, an Ottawa-based attorney specializing in commercial law at McMillan LLP.
He explained that owners can initiate a legal challenge to the seizure until Ottawa files a formal petition with the court to forfeit the asset. At that point, the company would receive written notice and would have an opportunity to contest the claim.
It’s fair to say that this exposes us to the risk of retaliation. “I think it’s common knowledge that the Russian government has imposed sanctions on a number of Canadians,” Mr Pellerin said.
Prime Minister Justin Trudeau visited the Ukrainian capital on June 10 for the second time since the war began.
Photo: The Canadian Press/Frank Gunn
Russia is ready to retaliate
To that end, Moscow said it was ready to retaliate against stolen Russian property, citing that the plane landed in Toronto to deliver COVID-19 test kits.
The Russian side warned that the practical implementation of this decision will have a serious impact on Russian-Canadian relations, which are already on the verge of collapse, the Russian ministry wrote. We reserve the right to retaliate in accordance with the principle of reciprocity.
Moscow and Ottawa have summoned their ambassadors several times. Canada claims Russia is committing war crimes and spreading homophobic rhetoric on social media, while the Kremlin claims Canada is not adequately protecting its embassy in Ottawa.
It’s no surprise that Russia is taking this retaliatory measure, said William Pellerin, who advises Canadian and international companies, but not Russian companies, on how to deal with the sanctions regime.
Canada’s approach to seizure and confiscation is the first of its kind in the world. Russia would certainly be deeply concerned if other countries followed Canada’s approach, Pellerin said.
Senate warning
Meanwhile, Ottawa has yet to deliver on its promise made six months ago to seize funds allegedly held by Russian oligarch Roman Abramovich; No lawsuits were filed in the provincial court last month.
A Senate report last month warned that the legislation could endanger Canadian companies abroad and undermine the rule of law if the provisions are not enforced through due process.
The Canadian government should exercise caution in confiscation procedures, the report argues, adding that working with allies could mitigate unintended consequences.
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