Russian airline claims business destruction due to Canadian sanctions on Russian assets

  • Russian airline Volga-Dnepr files a $100 million claim against the Canadian government for seizing its Antonov An-124 cargo plane
  • Canada closed its airspace to Russian aircraft in February 2022 and placed Volga-Dnepr on its sanctions list
  • The plane has been parked at Toronto’s Pearson International Airport since then, suffering from exposure and lack of maintenance
  • Volga-Dnepr argues that expropriation violates a 1989 investment agreement between Canada and the former USSR
  • Canada is one of several Western countries considering using frozen Russian assets to help fund Ukraine’s defense and reconstruction

Russian airline Volga-Dnepr has filed a claim against the Canadian government for $100 million, arguing that its business was destroyed after Canada seized their Antonov An-124 cargo plane. The aircraft, one of only 26 in the world, has been stuck at Toronto’s Pearson International Airport since February 2022 when Canada closed its airspace to Russian planes. Volga-Dnepr claims that expropriation violates a 1989 investment agreement between Canada and the former USSR, which entitles them to compensation. As Western nations debate how to use frozen Russian assets for Ukraine’s defense and reconstruction, legal challenges may arise in seizing property.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Canada’s efforts to seize a Russian cargo plane and the legal challenges it faces, as well as the broader context of Western countries considering using frozen Russian assets to support Ukraine. It includes quotes from relevant sources and discusses different perspectives on the issue.
Noise Level: 6
Noise Justification: The article provides some relevant information about legal challenges faced by Canada in seizing a Russian cargo plane and the ongoing debate over expropriating Russian assets to support Ukraine’s reconstruction. However, it contains some repetitive information and could benefit from more analysis or context on the broader implications of these actions.
Private Companies: Volga-Dnepr
Key People: John Boscariol (international trade lawyer at McCarthy Tétrault), Olaf Scholz (German Chancellor), Roman Abramovich (Russian oligarch), Ann M. Simmons (contributor), Vipal Monga (writer)

Financial Relevance: Yes
Financial Markets Impacted: Canadian government, Russian airline Volga-Dnepr, and other frozen Russian assets
Financial Rating Justification: The article discusses Canada’s efforts to seize a Russian cargo plane and the legal challenges it faces, as well as the broader issue of expropriating Russian assets to support Ukraine’s reconstruction. This has financial implications for the involved parties and could impact markets through potential lawsuits and negotiations.
Presence Of Extreme Event: No
Nature Of Extreme Event: Legal and Judicial Events
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Although there are legal disputes and conflicts regarding the seizure of Russian assets, no extreme event has occurred in the last 48 hours. The situation is ongoing but not classified as a major crisis.
Deal Size: The deal size mentioned in the article is $100 million.
Move Size: No market move size mentioned.
Sector: All
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Image source: Alex Beltyukov /

Reported publicly: www.wsj.com