Ottawa did nothing to actually take millions from the Russian oligarch
Two years after Foreign Minister Melanie Jolie announced he was taking the unprecedented step of seizing millions of dollars from a sanctioned Russian oligarch with assets in Canada, the government hasn't actually started legal proceedings to forfeit that money, let alone turn it over to rebuilding Ukraine, and it can. never happen.
The federal government announced on December 19, 2022 that it had ordered the freezing of $26 million held by an offshore investment fund in a Canadian bank account, saying the money ultimately belonged to Roman Abramovich, a top ally of the Russian president. Vladimir Putin.
It was Ottawa's first use new legislative powers not only to impose sanctions on certain people and companies, but also to seize their money and sell their assets based solely on those sanctions, something no other major Western economy has attempted.
The government has promised that Abramovich's alleged funds will be used to “rehabilitate Ukraine and compensate the victims of the Putin regime's illegal and unjustified invasion.” . hit with sanctions Canada earlier in 2022.
More than two years later, however, the Liberal government has not taken any necessary steps, including an application to the Supreme Court to effectively seize the $26 million it says is in an account at Canada's Citco Bank.
“We haven't seen any of that, and it's definitely a mystery. I wish I knew what was going on,” said independent Sen. Donna Dasco, who is leading the now-defunct House bill S-278. which would further increase the government's sanctioning powers.
“It's taken a lot of time,” Dasco said, “and we really need some transparency on this.”
Risk Canada may have to compensate oligarch
Global Affairs Canada would not say why it has not yet taken action to seize the funds. In a brief emailed statement last month, it said it did not have to do so “for a period of time.” It would not provide additional information, citing privacy concerns , although the Department had distribute a press release About his plans to confiscate Abramovich's property.
The U.S. law firm representing Abramovich did not respond to emails seeking comment.A number of lawyers with expertise in sanctions and international trade say the government may have bitten off more than it can chew. chew when he announced that he would confiscate the millions.
There is a danger that because the money, according to Ottawa, is in an account belonging to an offshore investment fund called Manticore Fund (Cayman) Ltd., it may not actually be directly linked to Abramovich.
Russian oil is currently under sanctions by the federal government, but hundreds of millions of dollars have flowed into Canada since the start of the Ukraine war, potentially fueling cars and planes prohibited oil, some of which is on the Russian “shadow fleet”.
“The issue of ownership and control is a complex issue,” says Clifford Sosnow of Canada-based international firm Fasken.
Then there is the possibility that Abramovich could challenge any asset seizure on grounds similar to the 1991 Canada-Russia Investment Protection Agreementthe terms of which would require Canada to compensate it for any “expropriation” or “nationalization” of its investments, Sosnow noted.
John Boscariol of the Canadian law firm McCarthy Tétrault said the fact that Canada is taking the unprecedented step has other countries “watching to see how we succeed in this,” which may explain the delay in action.
“I think the Canadian government is probably being very cautious in the steps it takes, knowing that this is a precedent-setting case,” Boscariol said.
Other countries use Russia's foreign assets to help Ukraine, but not directly.The European Union, for example, has directed profit was created from the frozen funds of the Central Bank of Russia to Ukraine for its military and reconstruction, but so far they have not seized these funds.
G7 countries too announced A US$50 billion (Cdn$68 billion) loan package to Ukraine, guaranteed against interest received on frozen assets of the Russian Central Bank, for which Canada provided US$3.7 billion (Cdn$5 billion).
A giant cargo plane won't be flying anytime soon
About $140 million worth of Cdn assets have been frozen in Canada under the country's sanctions against Russia. RCMP said in his latest assessment.
But the liberal government has only committed to the confiscation of another Russian asset. in June 2023, ordered to confiscate An Antonov An-124 transport plane owned by Russia's Volga-Dnepr airline parked at Toronto's Pearson Airport.
The cargo plane, one of the largest in the world, has been sitting idle on the tarmac for nearly three years, costing the Ukrainian government more than $1 million in parking fees expressed a wish To take possession of the plane, however, any transfer would face many obstacles, not least of which is that the plane has not flown since 2022 and may no longer be airworthy.
Meanwhile, the Russian company that owns it has filed multiple disputes with the Canadian government The Toronto Star reports Last week, it filed an application in Federal Court in November asking a judge to lift Canadian sanctions on the company, and it also says it has filed a $100 million U.S. arbitration claim under the Canada-Russia investment agreement.
Orest Zakidalsky, senior policy adviser at the Ukrainian Canadian Congress, says the lack of progress in actually seizing these Russian-owned assets is disappointing.
“We're talking about years of the government saying this is a priority and then frankly we don't see much movement on it, or frankly any movement,” he said , and not much after that.”
WATCH |: Putin's Journey, Full CBC Documentary.
