A Canadian federal appeal court has dismissed a bid by billionaire former Russian oligarch Igor Makarov to lift sanctions that have frozen an estimated $145 million of his assets in Canada. The decision solidifies Canada's punitive measures against individuals deemed connected to Russia's war on Ukraine.
The Sanctions and the Appeal
Igor Viktorovich Makarov, an oil and gas magnate who renounced his Russian citizenship in the summer of 2023, was added to Canada's sanctions list following Russia's invasion of Ukraine. The sanctions, which led to the freezing of his substantial Canadian assets in 2022, target those associated with the Russian regime.
After Canada's then Foreign Affairs Minister Mélanie Joly refused his request for removal from the list, Makarov took his case to the Federal Court. Following a loss there, he appealed to the Federal Court of Appeal. In a recent decision dated December 9, a three-judge panel unanimously rejected his arguments.
Justice David Stratas, writing the decision from Toronto, stated that the court's role was not to reweigh the evidence or redo the minister's job. "We must dismiss Mr. Makarov’s appeal," Stratas wrote, concluding that Joly had provided "ample and detailed" support for her decision.
Connections to Russian State and Energy
The court's ruling detailed Makarov's deep ties to the Russian state and its critical energy sector. Justice Stratas noted that Makarov "was heavily involved in Russian gas sectors through his company, ITERA." The decision further stated he was connected to other Russian oligarchs and controllers of state-sponsored companies.
Perhaps most significantly, the court found that Makarov, 63, now a citizen of Cyprus, "had dealings with the Russian President, Vladimir Putin." The judgment emphasized that Makarov's billionaire wealth was accrued through business activities in Russia that were "state assisted, or state associated, with connections, some close, to Russian governmental officials."
According to Forbes, which pegged his net worth at US$2.2 billion in March 2023, Makarov founded Itera, Russia's first independent gas company. In a major state-linked deal, the state-controlled oil giant Rosneft bought out Itera for $2.9 billion in 2013.
Broader Implications and Profile
Makarov, a former professional cyclist for the USSR national team, is also the founder of the ARETI International Group and was once a major shareholder in the Calgary-based energy company Spartan Delta Corp. His case is part of a wider Canadian and international effort to economically pressure key figures around the Kremlin.
The court's dismissal sends a clear signal that Canada's sanctions regime, enacted under the Special Economic Measures Act, will not be easily overturned through legal appeals based on personal circumstances or renounced citizenship. The ruling reinforces the government's discretion in identifying individuals whose wealth and influence are seen as supporting the Russian state.
By upholding the freeze on $145 million in assets, the Federal Court of Appeal affirms a key tool in Canada's foreign policy response to the war in Ukraine, targeting the financial networks of those with historic and substantive links to the Russian power structure.
