Order Respecting the Seizure of Property Situated in Canada (Aircraft RA-82078): SOR/2025-29
Canada Gazette, Part II, Volume 159, Number 5
Registration
SOR/2025-29 February 14, 2025
SPECIAL ECONOMIC MEASURES ACT
P.C. 2025-105 February 14, 2025
Whereas the Governor in Council is of the opinion that the actions of the Russian Federation constitute a grave breach of international peace and security that has resulted in a serious international crisis;
Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Foreign Affairs, makes the annexed Order Respecting the Seizure of Property Situated in Canada (Aircraft RA-82078) under paragraph 4(1)(b)footnote a and subsection 4(1.1)footnote b of the Special Economic Measures Act footnote c.
Order Respecting the Seizure of Property Situated in Canada (Aircraft RA-82078)
Seizure
Application
1 This Order applies to the An-124-100-150 aircraft manufactured by Aviastar-SP, with the registration number RA-82078 and serial number 9773054559153, that is located at Lester B. Pearson International Airport (CYYZ) in Toronto and owned — or held or controlled, directly or indirectly — by Aleksey Ivanovich Isaykin, Volga-Dnepr Airlines (Ireland) Limited, Volga-Dnepr Logistics B.V., Sberbank, Volga-Dnepr Airlines or Volga-Dnepr Group, which are all persons identified in the Special Economic Measures (Russia) Regulations.
Seizure
2 The aircraft referred to in section 1 is seized in such a manner that no dealing can be carried out with respect to the aircraft, other than by the Minister of Public Works and Government Services, and such that that Minister takes possession and control of the aircraft and is authorized to manage or otherwise deal with the aircraft.
Application Before Publication
3 For the purpose of paragraph 11(2)(a) of the Statutory Instruments Act, this Order applies according to its terms before it is published in the Canada Gazette.
Repeal
4 The Order Respecting the Seizure of Property Situated in Canada (Volga-Dnepr Airlines or Volga-Dnepr Group) footnote 1 is repealed.
Coming into Force
Registration
5 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
It is necessary to update the order respecting the seizure of the Antonov 124 aircraft located at Toronto Pearson International Airport to include additional persons believed to own, hold or control — directly or indirectly — that property.
Background
On February 24, 2022, Russian President Vladimir Putin announced “a special military operation” as Russian forces launched a full-scale invasion of Ukraine from Russian and Belarusian territory, which continues to this day. Heavy fighting persists in eastern and southern Ukraine. As part of its military strategy, Russia continues to fire missiles and kamikaze drone attacks on essential civilian infrastructure. In December 2024, the United Nations (UN) Human Rights Monitoring Mission in Ukraine has confirmed at least 12 456 civilians have been killed and 28 382 injured since February 24, 2022. Furthermore, 680 medical facilities and 1 275 educational facilities in Ukraine have been damaged or destroyed by Russia’s military since the invasion.
International response
The coalition of countries supporting Ukraine against Russia’s illegal invasion includes, but is not limited to, G7 and European countries and some of Ukraine’s neighbours. This group is working to support Ukraine across a number of areas, including energy security, nuclear safety, food security, humanitarian assistance, combatting Russian disinformation, sanctions and economic measures, asset seizure and forfeiture, military assistance, accountability, recovery and reconstruction. Canada and G7 countries are engaged diplomatically with the broader international community to encourage support for Ukraine and counter false Russian narratives.
Canada’s response
Following Russia’s illegal occupation and attempted annexation of Crimea in March 2014, the Government of Canada, in tandem with partners and allies, enacted sanctions through the regulations under the Special Economic Measures Act (SEMA). The Special Economic Measures (Russia) Regulations (the Russia Regulations) impose dealings prohibitions (an effective asset freeze) on listed individuals and entities supporting or enabling Russia’s violation of Ukraine’s sovereignty. Any person in Canada and Canadians outside Canada are prohibited from dealing in the property of, entering into transactions with, providing services to, or otherwise making goods available to persons listed under Schedules 1, 2 or 3 of the Russia Regulations.
In coordination with its international partners, Canada has imposed sanctions on more than 3 000 individuals and entities in Russia, Belarus, Ukraine and Moldova who are complicit in the violation of Ukraine’s and Moldova’s sovereignty and territorial integrity and human rights abuses. In addition, Canada has implemented targeted restrictions against Russia in financial, trade (goods and services), energy and transport sectors.
Canada’s asset seizure and forfeiture regime
On June 23, 2022, Canada was the first to implement a G7 commitment to seize, forfeit and redistribute sanctioned persons’ assets by amending the SEMA and the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law). Canada’s asset seizure and forfeiture regime enables the Government to seize (if the asset if of physical nature), restrain (if the asset is financial, such as accounts, investments, bonds), forfeit, dispose and redistribute assets belonging to listed individuals and entities that have already been effectively frozen by Canadian sanctions.
Any property recommended for seizure (or restraint) and forfeiture is assessed on a case-by-case basis. Forfeiture of property requires a two-stage process: first, a Governor-in-Council Order (OIC) would be obtained under paragraph 4(1)(b) of the SEMA to seize or restrain targeted property belonging to a sanctioned individual or entity pursuant to the triggers set out in subsection 4(1.1) of the SEMA. Second, once the property is seized or restrained, the Minister of Foreign Affairs may apply to a provincial court in which the property is located for an Order that the property be permanently forfeited to the Crown. If the request to forfeit is successful, the proceeds from its disposal may be used for the reconstruction of affected states, the restoration of international peace and security, and compensation to victims, as described in section 5.6 of the SEMA.
Canada has used the regime’s authorities twice to date. First, on December 19, 2022, when Canada announced that an OIC had been made to restrain US$26 million from Granite Capital Holdings Ltd., a company believed to be owned, held, or controlled by Roman Abramovich, a Russian oligarch sanctioned under the Russia Regulations. Second, on June 10, 2023, when Canada announced that an OIC had been made to seize an Antonov 124 aircraft believed to be owned, held, or controlled by Volga-Dnepr Airlines or Volga-Dnepr Group, two entities sanctioned under the Russia Regulations.
Objective
- Update the Order respecting the seizure of property in Canada to include additional persons with ownership interests in that property.
- Send a clear message that those who are complicit in the support of regimes that violate international law can no longer continue to benefit.
Description
The Order repeals the Order Respecting the Seizure of Property Situated in Canada (Volga-Dnepr Airlines or Volga-Dnepr Group) [SOR/2023-120] and replaces it with a new seizure order that identifies Aleksey Ivanovich Isaykin, Volga-Dnepr Airlines (Ireland) Limited, Volga-Dnepr Logistics B.V. and Sberbank, alongside Volga-Dnepr Group and Volga-Dnepr Airlines, as persons believed to own, hold, or control, directly or indirectly, the currently seized Antonov 124 aircraft located at Toronto Pearson International Airport.
As was the case under the previous seizure order, the Minister of Public Works and Government Services has possession and control of the aircraft and is authorized to manage or otherwise deal with the aircraft.
Regulatory development
Consultation
Global Affairs Canada regularly engages with relevant stakeholders, including civil society organizations, cultural communities and other like-minded governments, regarding Canada’s approach to sanctions implementation.
Public consultation would not be appropriate as publicizing the names of the persons targeted by the Order could result in changes to the ownership structure prior to its entry into force.
Modern treaty obligations and Indigenous engagement and consultation
An initial assessment has been conducted, and no modern treaty implications have been identified.
Instrument choice
Regulations are the sole method to enact sanctions in Canada. No other instrument could be considered.
Regulatory analysis
Benefits and costs
There are no costs associated with the Order. Further, given the asset targeted does not involve Canadians or persons in Canada, Global Affairs Canada does not expect any Canadian to be negatively impacted by this Order. The benefits are including additional designated entities with ownership interests in the property and, thereby, limiting the ability of those who are complicit in the support of regimes that violate international from deriving any benefit.
Small business lens
Analysis under the small business lens concluded that the initiative will not impact Canadian small businesses, since the Order does not involve any Canadian businesses or business people in Canada.
One-for-one rule
The one-for-one rule does not apply to the Order, as it does not impose any incremental administrative burden on Canadian businesses.
Regulatory cooperation and alignment
While like-minded allies remain supportive of Canada’s initiative and continue to explore options for implementing the G7’s commitment to seize and forfeit the assets of sanctioned persons, Canada was the first — and to date still the only one — to implement this commitment through the creation of a legislative regime for asset seizure and forfeiture on the basis of economic sanctions.
Effects on the environment
This Order is unlikely to result in important environmental effects. In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment (SEEA Directive), a preliminary scan concluded that an SEEA is not required.
Gender-based analysis plus
No gender-based analysis plus (GBA+) impacts have been identified for the Order.
Implementation, compliance and enforcement, and service standards
The Order comes into force on the day on which it is registered. Global Affairs Canada will notify the individuals and entities related to the asset of the new conditions of the Order.
Any permits issued pursuant to the Order Respecting the Seizure of Property Situated in Canada (Volga-Dnepr Airlines or Volga-Dnepr Group) [SOR/2023-120] remain valid pursuant to the conditions stipulated in the permit.
Contact
Sanctions Bureau
Global Affairs Canada
Email: sanctions@international.gc.ca