Moscow warns that relations with Canada are “on the verge of being severed” after the federal Liberal government decided to confiscate a huge Russian cargo plane.
Prime Minister Justin Trudeau visited Ukraine over the weekend, where he announced that Canada had officially seized a plane 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 an English statement released on Tuesday.
A year ago, Canada became the first G7 country to enact legislation that allows Ottawa not only to seize assets held by sanctioned individuals, but also to confiscate the money and distribute it to victims of a sanctioned regime.
The law remains unused, but Justin Trudeau said Ottawa plans to begin a process to either transfer the plane to Ukraine or sell it for money that would support the country’s recovery.
“We will do it as soon as possible, but I can tell you that Ukrainians are very happy that the path has begun,” said the Prime Minister of Canada on Saturday.
The Antonov AN-124, registered in Russia, is owned by the Volga-Dneper company, which Canada sanctioned in April. It is one of the biggest planes in the world, and Ottawa fears that Russia will use it to deliver military equipment for its invasion of Ukraine.
The government officially seized the aircraft by Cabinet Order on June 8.
“I think there was pressure on the government to do something about it because it effectively couldn’t be moved because Russian planes are banned from Canadian airspace,” he said. William Pellerin, an Ottawa-based lawyer specializing in commercial law at McMillan LLP.
He explained that owners can launch a legal challenge to the seizure until such time as Ottawa files a formal request with the court to forfeit the asset. At this point, the business would receive written notice and have the opportunity to dispute the claim.
“It is fair to say that this opens us up to retaliation. I think it is well known that the Russian government sanctioned a number of Canadians,” Pellerin said.
To that end, Moscow said it was ready to retaliate on “stolen Russian property”, noting that the plane landed in Toronto to deliver COVID-19 test kits.
“The Russian side warns that the practical implementation of this decision will lead to the most serious repercussions for Russian-Canadian relations, which are already on the verge of breaking down,” the Russian ministry wrote. We reserve the right to retaliate in accordance with the principle of reciprocity. »
Moscow and Ottawa have summoned their ambassadors on numerous occasions, with Canada claiming Russia is committing war crimes and spouting homophobic rhetoric on social media, while the Kremlin maintains that Canada is not adequately protecting its embassy in Ottawa.
“It’s no surprise that Russia is taking this retaliatory stance,” said William Pellerin, who advises Canadian and international companies, but not Russian companies, on how to navigate the sanctions regime.
“Canada’s approach to seizure and forfeiture is the first of its kind in the world. Certainly Russia would be deeply concerned if other countries followed Canada’s approach,” said Mr. Pellerin.
Meanwhile, Ottawa has yet to deliver on a promise from six months ago to try to seize funds it says are held by Russian oligarch Roman Abramovich, when no demand has been forthcoming. was filed in provincial court last month.
A Senate report from May warned that the legislation could endanger Canadian businesses overseas and could undermine the rule of law if the provisions are not enforced through due process.
“The Government of Canada should proceed with caution regarding any confiscation process,” the report argues, adding that working collaboratively with allies could “mitigate unintended consequences.”