Igor Makarov renounced his Russian citizenship in 2023 and wants off Canada's sanctions list.Tim de Waele/Getty Images
A former Russian oligarch has renewed his legal fight to force Ottawa to remove him from Canada’s sanctions regime and free up more than $100-million of frozen assets.
Lawyers for Igor Makarov informed Global Affairs Canada on Oct. 10 that they plan to challenge his presence on Canada’s sanctions list before an international arbitration panel. That could be either the World Bank’s International Centre for Settlement of Investment Disputes or a United Nations panel.
The billionaire oil and gas tycoon renounced his Russian citizenship in 2023 and is now a citizen of Cyprus and Moldova. He accuses Ottawa of violating an investment treaty it has with Moldova.
Canada placed Mr. Makarov under sanctions and froze $145-million of his assets in the aftermath of Russia’s invasion of Ukraine in February, 2022. His lawyers say the frozen assets and lost investments amount to $350-million.
Mr. Makarov is seeking $350-million through international arbitration unless Ottawa renews negotiations to delist him.
Earlier: Russian oligarch Igor Makarov moved money before Canada added him to sanctions list
“We invite Canada to resolve this dispute amicably by negotiation,” his London-based lawyers wrote to Global Affairs’ sanctions division in a letter obtained by The Globe and Mail.
The letter argues that the “sanctions have not been pursued in Canada in an even-handed manner or based on good-faith belief in any genuine connection between Mr. Makarov and the Russian regime, but rather to target Mr. Makarov as one of the few (former) Russians with substantial assets in Canada.”
Britain, Australia and New Zealand had also put Mr. Makarov on their Russian sanctions lists, but they delisted him in March, 2024, and May and September of this year, respectively.
The United States and European Union never imposed sanctions on Mr. Makarov, a former Soviet Union cycling champion.
Canada now remains the only Western country with sanctions in place against Mr. Makarov because of his alleged ties to senior Russian officials, which he denies having.
Mr. Makarov had previously challenged then-foreign affairs minister Mélanie Joly’s decision not to delist him before the Federal Court of Canada. That case was dismissed in August, 2024. The court said the minister has wide discretion and is “not bound by the strict rules of evidence.” The dismissal is currently under appeal at the Federal Court of Appeal.
Mr. Makarov filed a second delisting application based on the international delistings in Britain and Australia. That application was also dismissed and is under judicial review. He then made a third delisting application after New Zealand subsequently also delisted him. That application is pending.
His notice of legal dispute and intent to submit a claim to international arbitration under the Moldova-Canada investment treaty is a separate matter. He would be seeking compensation for mistreatment by Canada in violation of protections provided to him under the treaty.
Thida Ith, a spokesperson for Global Affairs, said the department is “reviewing the information provided in the Notice of Intent,” but would have no further comment “on specific sanctions listings for privacy reasons.”
Mr. Makarov and his lawyers did not make themselves available for comment.
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Mr. Makarov was the founder of the Russian energy conglomerate ITERA. The letter says that the businessman, who is currently president of ARETI International Group, not only severed ties to Moscow but has also spoken out publicly against the invasion of Ukraine and contributed funds to help 15,000 Ukrainian refugees.
He said in the letter that he was forced to sell ITERA to the Russian state-owned oil and gas corporation Rosneft in 2013 and moved to Switzerland in 2016. He is now a resident of Cyprus.
That same year, he invested heavily in Calgary-based oil and gas exploration company Inception Exploration Inc., which was later taken over by Spartan Delta. The shares in Spartan have been frozen.
His lawyers argue that Mr. Makarov’s Canadian investments constitute a significant portion of the total value of his frozen assets and blocked transactions.
“Canada has unlawfully deployed its sanctions regime against Mr. Makarov to restrict him from benefiting from, transacting with, or dealing in any way with his extensive investments in Canada,” the letter says.
Being placed on Canada’s Russia-related sanctions list means any assets of the named person in Canada are frozen. People in Canada and Canadians outside of this country are prohibited from providing financial services to those under sanction, or entering into or facilitating transactions with them.
Those under sanctions in Canada might also face the prospect of the federal government seizing and selling off their assets, with the proceeds donated to Ukraine, as Ottawa has proposed doing. They are also banned from entering Canada.