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Billionaire former Russian oligarch loses appeal to lift Canadian sanctions on $145 million worth of assets
A billionaire and former Russian oligarch who renounced his Russian citizenship in the summer of 2023 has failed in his bid to get Canadian sanctions against him lifted.
Igor Viktorovich Makarov’s case wound up at the Federal Court of Appeal after Canada added the oil and gas magnate’s name to the sanctions list aimed at punishing those associated with Russia’s war on Ukraine. Canada reportedly froze $145 million of Makarov’s assets in 2022.
“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. Thus, the Governor in Council added him to the sanctions list,” Justice David Stratas wrote in a recent decision out of Toronto from the three-judge panel.
Makarov — founder of the ARETI International Group and once a major shareholder in Calgary-based Spartan Delta Corp. — had asked Canada’s then foreign affairs minister Mélanie Joly to remove him from the list, but his request was refused.
He took his case to the federal court and lost, then appealed.
“We must dismiss Mr. Makarov’s appeal,” Stratas wrote.
Many of Makarov’s “submissions use the language of legal principle,” said the judge.
“But, in reality, Mr. Makarov asks us to reweigh the evidence and redo the Minister’s job. Indeed, Mr. Makarov goes further. He asks us to make our own decision and impose it on the Minister. Under reasonableness review and the granting of remedies, this is not our normal task.”
Makarov is a former professional cyclist and member of the USSR national cycling team. In March 2023, Forbes pegged his net worth at US$2.2 billion.
Joly provided “ample and detailed” support for her decision to keep Makarov on the sanctions list, Stratas said in his decision dated Dec. 9.
“Mr. Makarov was heavily involved in Russian gas sectors through his company, ITERA. He was connected to Russian oligarchs and controllers of Russian state-sponsored and state-owned companies,” said the judge.
“As well, he was a senior sports official in Russia and had dealings with the Russian President, Vladimir Putin.”
Makarov, 63, is now a citizen of Cyprus.
According to Forbes, he founded Itera, Russia’s first independent gas company.
“In the late 1990s, Itera was Russia’s main exporter of gas from Turkmenistan, where Makarov was born,” the magazine reported.
”In 2012 Itera entered into a joint venture with Rosneft, the state-controlled oil company; the next year, Rosneft bought out Itera for $2.9 billion.”
Makarov was appointed as an energy adviser to the president of Turkmenistan in 2019.
Makarov “argued that he is no longer an associate of the Russian regime,” Stratas said.
“He says he was forced to sell his oil and gas business, ITERA; he renounced his Russian citizenship; his relationship with certain figures was adversarial. He also says he has never been politically involved and that he does not currently support President Vladimir Putin. He says he has spoken against the Ukraine war and has made humanitarian contributions to vulnerable Ukranians.”
But Joly wasn’t buying it.
“The Minister considered Mr. Makarov’s attempts to distance himself from the Russian regime to be superficial, not meaningful. The Minister found that nothing really changed between the decision to list Mr. Makarov, which was supported by a constellation of evidence of association, and his application to be delisted,” said the appeal decision.
“The Minister did not consider Mr. Makarov’s renunciation of citizenship a genuine effort to separate himself from the regime. He had not publicly denounced the Government of Russia or President Vladimir Putin, something that might help to rebut his past associations and activities. As well, the Minister found the extent of Mr. Makarov’s humanitarian efforts difficult to substantiate. The Minister considered the purposes of this sanctions regime, drew upon an appreciation of international affairs, noted the decisions of other states to sanction Mr. Makarov, and concluded that Mr. Makarov had not made out a case for delisting.”
The appeal court sided with Joly.
“The Minister’s decision was made based on evidence existing at the time of this decision,” Stratas said.
“If there is new evidence such that the legislative threshold of a ‘material change in circumstances’ is met, Mr. Makarov can apply again to the Minister and the Minister must consider the matter afresh.”
New Zealand removed Makarov from its Russia Sanctions Register this past September, joining the United Kingdom and Australia in reversing measures initially imposed in 2022.
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