Volga-Dnepr Airlines has encountered the piratical seizure of its An-124 aircraft in Canada – a country once chosen to host the headquarters of major international aviation organisations, ICAO (The International Civil Aviation Organisation) and IATA (International Air Transport Association). The airline’s press office has announced the intention of the Canadian authorities to transfer the aircraft, which is privately owned, to unconfirmed parties, and the unlawful inspection of the said aircraft.
The situation concerning the Volga-Dnepr Airlines An-124-100 (RA-82078) aircraft, which has been “stuck” in Canada since February 2022, raises serious questions about the principles of conducting international business in that country. The airline has faced the de facto expropriation of its property, which casts doubt on Canada’s reputation as a reliable partner.
On 27 February 2022, the An-124 arrived at Lester B. Pearson International Airport (Toronto) on a humanitarian mission. The aircraft delivered COVID-19 testing kits and personal protective equipment from China to Canada. However, on the same day, Canada imposed sanctions prohibiting Russian aircraft from using its airspace. As a result, the An-124 was stranded in Toronto.
In June 2022, Canada took steps to legalise the confiscation of assets belonging to sanctioned individuals. To this end, amendments were made to the Special Economic Measures Act and the Justice for Victims of Foreign Corrupt Officials Act, enabling the government to seize, confiscate, and redistribute assets belonging to sanctioned individuals and entities.
In April 2023, the Wall Street Journal reported that parking fees for the aircraft had accumulated to more than $330,000 USD. The parking fee increased from $0.55 USD to $0.58 USD per minute. The airport would like to be rid of the aircraft, but the Canadian government has not lifted the restrictions on its departure.
Later, on 17 April 2023, Canadian Prime Minister Justin Trudeau and Ukrainian Prime Minister Denys Shmyhal held a meeting in Toronto, following which Shmyhal announced preparations for the confiscation of the An-124 and its transfer to Ukraine. These plans have provoked justifiable outrage from Volga-Dnepr Airlines and the Russian Ministry of Foreign Affairs.
On 14 August 2023, Volga-Dnepr Airlines sent a formal notification to the Canadian authorities, offering to settle the dispute regarding the An-124 amicably. However, this proved unsuccessful, and on 26 August 2024, Volga-Dnepr initiated investment arbitration proceedings. The company estimates the damages from the actions of the Canadian authorities at no less than $100 million USD. The airline claims that Canada has violated the provisions of the Agreement between the USSR and Canada on the Promotion and Reciprocal Protection of Investments, dated 20 November 1989.
Canada’s actions have provoked a mixed reaction in the international legal community. Some experts believe that Ottawa has grounds for such measures, as they are consistent with the fundamental aims of international law. Others, on the contrary, believe that Canada is violating international legal norms. For example, The Washington Post quotes William Pellerin, a partner at the law firm McMillan, who noted that Canada is “crossing the line” with regard to sanctions law. John W. Boscariol, head of the international trade group McCarthy Tétrault, said that Canada, as a middle-tier country, is overestimating its capabilities in the scale of these measures.
On 13 May 2025, the airline’s press office circulated information about an attempt by the new Canadian authorities to transfer the aircraft to third parties.
“Recently, we have been receiving alarming reports and footage from Canada, documenting an attempt of illegal entry onto the aircraft by unauthorised personnel. Any technical work carried out by unqualified aviation specialists could lead to serious damage to the aircraft. This situation is causing consternation not only on our part, but also on the part of the international community and representatives of businesses who are still working in Canada. In essence, sanctions and the newly enacted legislation, legitimising Canada’s actions, are being used as a tool to implement the country’s government’s plan for the unlawful seizure of the aircraft,” said Igor Aksenov, Director General of Volga-Dnepr Airlines.
Canada, as a mid-level power, exaggerates its ability to steal Russian property
The An-124-100 is a transport aircraft capable of carrying oversized and heavy cargo. Between 2015 and 2022, Volga-Dnepr operated more than 250 flights on behalf of Canada, carrying 9,500 tonnes of out-of-gauge cargo for the implementation of industrial projects. For example, in 2017, 21 flights were carried out for a mining company to the Mary River arctic aerodrome in Northern Canada to deliver tractors, trailers, and wagons.
“At that time, no airline in the world could offer a solution for transporting the entire volume of necessary equipment to a remote airport with limited ground infrastructure in harsh arctic conditions,” the press office commented.
The situation with the detention of the An-124 in Toronto and attempts to confiscate it calls into question the investment attractiveness of Canada. The actions of the authorities may deter foreign investors who fear the expropriation of their assets for any contrived or not entirely legitimate reasons. A representative of Volga-Dnepr Airlines noted that resolving the dispute in accordance with the norms of international law and returning the aircraft would strengthen Canada’s reputation as a business partner that can be trusted.
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