A billionaire former Russian oligarch has lost his legal battle to have Canadian sanctions against him removed, leaving $145 million in frozen assets locked down by Ottawa's measures targeting associates of the Russian regime.
Court Upholds Sanctions on Former Gas Magnate
Igor Viktorovich Makarov, who renounced his Russian citizenship in the summer of 2023, saw his appeal dismissed by the Federal Court of Appeal in a recent decision. The court upheld the Canadian government's 2022 decision to place Makarov on its sanctions list, a move designed to punish those associated with Russia's war on Ukraine.
Justice David Stratas, writing for a three-judge panel in Toronto, stated the decision was justified. "Mr. Makarov became a billionaire from his business activities in Russia, some of which were state assisted, or state associated, with connections, some close, to Russian governmental officials," Stratas wrote.
Deep Ties to Russian Energy and Putin Cited
The court found ample evidence to support the sanctions. Makarov was "heavily involved in Russian gas sectors" through his company, ITERA, and had connections to other Russian oligarchs and state-owned company controllers. Crucially, the decision noted he "had dealings with the Russian President, Vladimir Putin."
Makarov, a 63-year-old former professional cyclist for the USSR national team and now a citizen of Cyprus, is the founder of the ARETI International Group. He was once a major shareholder in Calgary-based Spartan Delta Corp. According to Forbes, which pegged his net worth at US$2.2 billion in March 2023, he founded Itera, Russia's first independent gas company.
In 2013, Russian state-controlled oil giant Rosneft bought out Itera for $2.9 billion, following a joint venture established the previous year.
Legal Challenge Deemed an Attempt to "Redo the Minister’s Job"
Makarov had initially asked then-Foreign Affairs Minister Mélanie Joly to remove him from the sanctions list. After her refusal, he took his case to the Federal Court, lost, and then launched the appeal that has now failed.
The appeal court judge characterized Makarov's arguments as an improper request for the judiciary to overstep its bounds. "Many of Mr. Makarov’s submissions use the language of legal principle," Justice Stratas noted. "But, in reality, Mr. Makarov asks us to reweigh the evidence and redo the Minister’s job... this is not our normal task."
The court concluded that Minister Joly had provided "ample and detailed" support for her decision to keep the sanctions in place. With the appeal dismissed, the sanctions and the freeze on Makarov's substantial Canadian assets remain firmly in effect.
