- A Federal Court judge upheld sanctions against Volga-Dnepr, maintaining restrictions on the Russian carrier and its founder.
- The decision keeps a stranded Antonov AN-124 cargo plane grounded at Toronto Pearson International Airport.
- The airline faces forfeiture proceedings and arbitration as Canada moves to potentially transfer the aircraft’s value to Ukraine.
A Federal Court judge on August 13 denied Volga Dnepr Airlines’ request for sanctions relief, keeping Canada’s restrictions on the Russian cargo carrier and its founder and former chairman, Aleksey Ivanovich Isaykin, in place.
The ruling also leaves the company’s Antonov AN-124-100 aircraft at Toronto Pearson International Airport. The plane, registration RA-82078 and serial number 9773054559153, has been stranded there since February 27, 2022.
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The airline argued that it stopped carrying military cargo in 2018 and applied in 2023 to be removed from Canada’s sanctions list. The government said the carrier benefited from Russian government contracts and subsidies and helped President Vladimir Putin’s regime bypass sanctions.
The judge rejected the airline’s judicial review request.
“has not demonstrated the decision was unreasonable or lacked procedural fairness”
The aircraft originally arrived to deliver COVID-19 test kits. While it was being unloaded, Canada closed its airspace to Russian-registered aircraft in response to Russia’s invasion of Ukraine, grounding the plane indefinitely.
The court challenge is one part of a wider dispute over the aircraft. Volga-Dnepr is seeking at least US$100,000,000 through international arbitration for what it alleges was an illegal seizure.
Canada ordered the aircraft seized before pursuing forfeiture
Canada formally ordered the aircraft seized on June 8, 2023, under the Special Economic Measures Act. The legislative powers allow the government to freeze, seize and potentially forfeit assets belonging to sanctioned persons, with the value or property potentially used to compensate victims or support reconstruction in affected states.
The Attorney General of Canada began formal forfeiture proceedings in the Superior Court of Ontario in March 2025. The case seeks to acquire the aircraft permanently, with the stated intention of transferring its value or the asset itself to Ukraine.
The aircraft has now been grounded for more than four and a half years. By early 2023, parking fees at Pearson had already exceeded US$330,000, at reported rates of approximately $0.58 USD per minute.
| Aircraft detail | Information |
|---|---|
| Type | Antonov AN-124-100 |
| Registration | RA-82078 |
| Serial number | 9773054559153 |
| Location | Toronto Pearson International Airport |
| Grounded since | February 27, 2022 |
| Seizure order | June 8, 2023 |
The AN-124 ranks among the world’s largest cargo aircraft. Losing it permanently would affect the carrier’s ability to fulfill heavy-lift international contracts.
Government documents connected the carrier to Russian state support
Former Foreign Affairs Minister Mélanie Joly rejected the airline’s delisting application in an October 2024 letter. She wrote:
“Materials that I have reviewed show that you have benefited from contracts and subsidies from the Russian government to assist with activities intended to ease or otherwise circumvent the effects of sanctions imposed against Russia by Canada and its partners”
A Global Affairs Canada memo disclosed during the proceedings made a separate allegation. It said the airline:
“played a critical role in supporting the efforts of the Russian regime to bypass sanctions. to obtain goods that are sanctioned or can be used in sensitive or military related sectors”
Canada has sanctioned over 3,300 individuals and entities related to the invasion of Ukraine since 2014. Foreign Affairs Minister Anita Anand said in related 2025/2026 briefings:
“Canada remains unwavering in its commitment to Ukraine's sovereignty. we are sending a clear message to Russia that the international community will continue to show a united front”
Isaykin’s request to be removed from the sanctions list was also denied in the August 13 ruling. The restrictions therefore remain in place against both the carrier and its former chairman.
Arbitration and Russian counter-measures remain active
The airline filed a Notice of Arbitration against Canada on August 23, 2024. The proceeding, identified as PCA Case No. 2025-09, remains pending in Singapore under UNCITRAL rules and alleges violations of the Canada-USSR Bilateral Investment Treaty (1989).
The arbitration is separate from the judicial review and Ontario’s forfeiture proceedings. The company says the aircraft’s seizure supports its claim for at least US$100,000,000 in compensation.
Approximately 1,500 employees remain tied to the carrier’s uncertain financial position as it faces the potential loss of an aircraft valued at over $100 million. The AN-124 is also a core asset for the company’s heavy-lift operations.
Russia’s Foreign Ministry has imposed personal sanctions on 56 Canadian citizens, including business executives and academics. The ministry cited Canada’s “theft” of the cargo plane as a primary justification for those counter-measures.
The Ontario forfeiture proceedings and the Singapore arbitration now continue alongside the sanctions decision. The aircraft remains at Pearson while those legal disputes proceed.
This article provides general information and is not legal advice. Consult a qualified immigration attorney about your specific case.
