Russian Company Sues Canada To Get Cargo Plane Back

Gemini Sparkle

Key Takeaways:

  • A Russian An-124 cargo plane, stranded in Canada since the Ukraine invasion and slated for donation to Ukraine, is now subject to a legal challenge by its owner.
  • The Russian freight company, Volga-Dnepr, is using a 1989 Canada-Soviet trade agreement (BIT) to challenge the seizure and reclaim the aircraft.
  • This legal action triggers a dispute mechanism under the agreement, giving Canada six months to resolve the issue before formal arbitration proceedings begin.
  • The company's move complicates Canada's plan to transfer the seized plane to Ukraine, potentially forcing a return or settlement.
See a mistake? Contact us.

Russian freight company Volga Dnepr has launched an unusual legal fight to reclaim one of its An-124 cargo planes from Canada, and legal experts say it might just work. The aircraft was flown to Toronto from Anchorage loaded with COVID pandemic supplies the night Russia invaded Ukraine. Canada closed its airspace to Russian aircraft and the huge aircraft has been parked on the ramp at Pearson International Airport ever since. Earlier this year, Canada promised to seize the plane and donate it to Ukraine but the transfer hasn’t yet occurred. The Canadian Broadcasting Corporation is reporting Volga-Dnepr may have found a trade agreement that will further complicate that process at the very least.

In 1989, then-Prime Minister Brian Mulroney and Mikhail Gorbachev, the Soviet president at the time, signed an agreement to foster trade as the USSR disbanded and moved toward capitalism. That deal includes a dispute mechanism that allows Volga-Dnepr to formally challenge what it considers unfair treatment, and it gives Canada a deadline to answer the charge. “If the dispute is not resolved within six months of Canada’s receipt of the notification, Volga-Dnepr Airlines will formally initiate arbitration proceedings,” the company said in a media statement. “Volga-Dnepr remains open to negotiations with Canadian representatives to resolve the issue and return the aircraft.” Canada has confirmed it received notice of the legal action but did not comment in detail.

Russ Niles

Russ Niles is Editor-in-Chief of AVweb. He has been a pilot for 30 years and joined AVweb 22 years ago. He and his wife Marni live in southern British Columbia where they also operate a small winery.
Sign-up for newsletters & special offers!

Get the latest stories & special offers delivered directly to your inbox

SUBSCRIBE

Please support AVweb.

It looks like you’re using an ad blocker. Ads keep AVweb free and fund our reporting.
Please whitelist AVweb or continue with ads enabled.