Canada’s Federal Court has rejected an appeal by Russian cargo carrier Volga-Dnepr over the seizure of its An-124-100 at Toronto Pearson International Airport, where the aircraft has been stranded since February 2022.
Registered RA-82078, the aircraft arrived in Toronto on 27 February 2022 carrying Covid-19 test kits from China on a humanitarian mission for the Canadian government. It was unable to leave after Ottawa closed Canadian airspace to Russian aircraft. The An-124 was subsequently moved to a remote parking area at Pearson, where it has remained in storage for more than four years.
In its 18 August ruling, the court found that Volga-Dnepr had failed to demonstrate that the Canadian authorities had acted unreasonably or breached procedural fairness. The decision leaves the aircraft subject to the measures imposed by Ottawa.
Canada’s foreign ministry has argued that Volga-Dnepr played a critical role in supporting Russian efforts to circumvent sanctions imposed by Canada and its allies, including measures targeting goods that could be used in sensitive sectors or for military purposes.
The Canadian government ordered the seizure of RA-82078 in June 2023 under the Special Economic Measures Act (SEMA). Volga-Dnepr disputes the legality of the seizure and has pursued international arbitration against Canada. In August 2024, the carrier notified Ottawa of its intention to launch investment arbitration after the Canadian government rejected a proposal to settle the dispute. Volga-Dnepr has put its losses at no less than USD 100 million.
The aircraft’s continued detention has also generated substantial storage costs. Parking charges were estimated at slightly more than USD 1,000 per day in 2022 and have continued to accrue during the aircraft’s detention.
The dispute has consequently moved beyond the original airspace closure. RA-82078 was already in Canada when the restrictions on Russian aircraft took effect and had arrived there on a flight carrying humanitarian supplies for the Canadian government. Ottawa subsequently moved to seize the aircraft and has sought to transfer it to Ukraine.
The Federal Court ruling leaves RA-82078 grounded in Canada while Volga-Dnepr continues to challenge the seizure through international arbitration.
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