Canadian court upholds sanctions on former Russian oligarch

The federal court dismissed Russian oligarch Igor Makarov’s request to lift sanctions imposed on him in Canada, according to Canadian media. Makarov's Canadian assets were frozen in 2022.

The court ruled that the foreign affairs minister, Melanie Joly, who announced the sanctions against the Russian oil magnate, had full authority to determine who should be included on the sanctions list.

Her decision was "justified, transparent, and clear," the court wrote in the ruling. The federal court handles cases related to federal institutions and federal law.

Makarov is a former Russian professional cyclist and oil and gas market broker. He currently holds citizenship of Cyprus and Moldova, having renounced his Russian citizenship. Nonetheless, Canadian sanctions also cover former Russian citizens. In his lawsuit, Makarov claimed he had no connections with Russian oligarchs or President Vladimir Putin. However, the court sided with the Canadian government’s view on Makarov’s ties to Russia. In documents submitted to the court, the federal government described Makarov as "surrounded by Putin's cronies," according to media reports.

Makarov's assets are valued at around 1.5 billion US dollars. The oligarch's wealth mainly stems from brokering deals between Turkmenistan and Russian companies. Makarov defended himself in a special letter submitted to the Canadian court. In it, he described his opposition to the Russian invasion of Ukraine, calling it "illegal." He further stated that the war initiated by the Kremlin aims to "undermine the world order." He said he opposes the "Russian regime" and claimed to be a "victim" of Putin. The court denied the request to keep the letter confidential.

In August 2022, Canadian media reported that Makarov purchased 21% of the shares in the oil and gas company Spartan Delta in Alberta in 2021 without the stock market regulator's knowledge. The oligarch acquired shares in the Canadian company by conducting a share exchange—a transaction that does not require disclosure of the shareholder's identity under Alberta provincial law. After the Russian invasion of Ukraine, Makarov divested some of his shares three days before the sanctions were imposed on him.

Since 2014, following the Russian annexation of Crimea, Canada has imposed sanctions on 1,500 individuals with Russian citizenship, and on 646 entities. According to the latest report from the federal police on the status of foreign assets in Canada, as of mid-May, frozen Russian assets were valued at over 100 million US dollars. Additionally, financial transactions amounting to over 234 million US dollars were also blocked.