Former Russian Billionaire Pursues $350 Million Claim Against Canada at International Tribunal
Igor Makarov, a billionaire who formerly held Russian citizenship and was once considered an oligarch, has initiated a significant legal action against the Canadian government. He is seeking $350 million in compensation through an international investment dispute tribunal, following the freezing of his Canadian assets after Russia's invasion of Ukraine.
Background of the Sanctions and Legal Battles
Makarov, who renounced his Russian citizenship in the summer of 2023, has already engaged in two unsuccessful court battles within Canada. These efforts aimed to have his name removed from the sanctions list, which was implemented to penalize individuals associated with Russia's war on Ukraine. Despite these setbacks, he has now escalated the matter to an international level.
The oil and gas magnate recently filed a request for arbitration with the International Centre for the Settlement of Investment Disputes (ICSID). This institution describes itself as an autonomous international body affiliated with the World Bank. In his filing, Makarov argues that Canada violated its investment treaty with Moldova, as he is now a citizen of Moldova and Cyprus, where he resides.
Details of the Arbitration Claim
According to the 42-page request dated January 14, Makarov contends that Canada failed to provide fair and equitable treatment or full protection and security for his investments, as required by the treaty. The document further states that Canada unlawfully expropriated his investments without compensation, breaching the Agreement between the Government of Canada and the Government of the Republic of Moldova for the Promotion and Protection of Investments, which came into effect in August 2019.
Makarov is requesting the tribunal to order Canada to pay full compensation for all losses he has suffered, with amounts to be determined but not less than $350 million. This claim is based on alleged violations of the treaty and international law.
Current Status and Legal Proceedings
Canada has responded to the arbitration request by providing ICSID with a list of federal government lawyers who will handle its arguments. Harry Burnett, one of Makarov's lawyers, confirmed this development in an interview from Miami, Florida. Burnett noted that a full tribunal must be constituted within 90 days, with hearings likely to take place in Washington, D.C.
Makarov has appointed Stephan Schill, a professor of international and economic law and governance at the University of Amsterdam, as his tribunal member. Canada is required to appoint its arbitrator, after which the two arbitrators will elect a third to complete the panel. Burnett indicated that the arbitration process could last upwards of three years.
Ongoing Efforts and Previous Attempts
In addition to the international arbitration, Makarov is once again in the process of asking Canada's Minister of Foreign Affairs, Anita Anand, to remove him from the sanctions list. Previously, he had requested former Foreign Affairs Minister Mélanie Joly to take him off the list, but this was refused.
Makarov's attempts to have the Federal Court overturn Joly's decision were unsuccessful on two occasions. However, according to his arbitration request, he now intends to apply to the Supreme Court of Canada for leave to appeal. It is worth noting that the Supreme Court historically hears less than a fifth of the cases that apply for leave.
Global Affairs Canada did not respond to inquiries about the case on Thursday, leaving the government's official stance unclear at this time. Makarov, who founded the ARETI International Group and was once a major shareholder in Calgary-based Spartan Delta Corp., continues to pursue multiple legal avenues in his quest for compensation and removal from sanctions.
