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Billionaire former Russian oligarch seeks $350 million from Canada at international tribunal
A billionaire former oligarch who renounced his Russian citizenship in the summer of 2023 is seeking $350 million from Canada at an international investment dispute tribunal for freezing his assets after Russia invaded Ukraine.
Igor Makarov has waged two unsuccessful Canadian court battles in an attempt to be removed from the sanctions list aimed at punishing those associated with Russia’s war on Ukraine. The oil and gas magnate recently filed a request for arbitration with the International Centre for the Settlement of Investment Disputes (ICSID), which bills itself as an autonomous international institution affiliated with the World Bank. In it, Makarov argues that because he’s now a citizen of Moldova, as well as Cyprus where he lives, Canada violated its treaty with the former by freezing his Canadian assets.
“Canada failed to accord (Makarov’s) investments fair and equitable treatment or full protection and security as required” by the treaty, said the request dated Jan. 14.
It goes on to say, “Canada unlawfully expropriated (Makarov’s) investments without compensation in violation” of 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 force in August 2019.
Canada responded Thursday by providing ICSID with a list of federal government lawyers who will handle its arguments, one of Makarov’s lawyers, Harry Burnett, said in an interview from Miami, Fla.
“We have to constitute a full tribunal within 90 days,” Burnett said, noting the hearings will likely take place in Washington, D.C.
Makarov has named Stephan Schill, a professor of international and economic law and governance at the Faculty of Law of the University of Amsterdam as its tribunal member.
“Canada has to appoint their arbitrator and then the two arbitrators … elect a third, and then we’re off to the races,” said Burnett, noting arbitration “can last upwards of three years.”
Global Affairs Canada did not respond Thursday to questions about the case.
Makarov is asking the tribunal to order “Canada to pay full compensation for all losses (he suffered), in amounts to be determined, but not less than $350 million, as a result of Canada’s Treaty and international law violations,” said the 42-page request.
It indicates Makarov is, once again, in the process of asking Canada’s minister of foreign affairs, Anita Anand, to take him off the sanctions list.
Makarov — founder of the ARETI International Group and once a major shareholder in Calgary-based Spartan Delta Corp. — had asked former foreign affairs minister Mélanie Joly to remove him from the list, but his request was refused.
The billionaire’s attempts to get the Federal Court to overturn Joly’s decision failed twice, but Makarov now intends to apply to the Supreme Court of Canada for leave to appeal, according to his arbitration request, which notes that the court, historically, hears less than a fifth of the cases that apply.
“Despite the fact that Mr. Makarov has: severed his ties with Russia long ago; publicly denounced Russia’s invasion of Ukraine; supported Ukrainian refugees; filed three applications for delisting and two proceedings for judicial review of the Minister of Foreign Affairs’ failure to recommend delisting; and — most importantly — the United Kingdom, Australia, and New Zealand have delisted Mr. Makarov and lifted their sanctions (while neither the United States nor the European Union has ever imposed sanctions on Mr. Makarov), Canada is adamant — and the sole outlier — in maintaining sanctions against Mr. Makarov,” said the request for arbitration.
“Canada has breached multiple obligations owed to Mr. Makarov under the Treaty and in doing so, Canada has effectively expropriated Mr. Makarov’s investment and caused substantial damage to him.”
Canada reportedly froze $145 million of Makarov’s assets in 2022. His Russian citizenship was terminated in June 2023.
“As a result of the sanctions, (Makarov’s) investment in Spartan Delta was frozen,” said his arbitration request. That meant Makarov “could no longer dispose of his shares in Spartan Delta and was barred from receiving dividends. In addition, (Makarov) was excluded from a substantial reorganisation within Spartan Delta. The sanctions had the effect of destroying the value of (his) investment in Spartan Delta.”
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.
A Federal Court of Appeal decision that came down late last year indicated that Joly had provided “ample and detailed” support for her decision to keep Makarov on the sanctions list.
“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,” Justice David Stratas wrote in a Dec. 9, 2025, decision from the three-judge panel. “As well, he was a senior sports official in Russia and had dealings with the Russian President, Vladimir Putin.”
But Makarov has made “public statements denouncing President Putin’s regime and Russia’s aggression in Ukraine,” said his arbitration request.
Makarov notes that in April 2022, “before he was sanctioned by any country, (he) applied for the renunciation of his Russian citizenship based on his revulsion at Russia’s actions in Ukraine.”
According to Forbes, Makarov 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’s multi-pronged efforts to get his name off Canada’s sanctions list appears to be the legal equivalent of a full-court press, according to Wayne MacKay, a professor emeritus at Dalhousie University’s Schulich School of Law.
“Obviously this guy has a lot of money, notwithstanding his losses,” MacKay said. “He’s trying every legal avenue possible.”
Decisions by the United Kingdom, Australia, and New Zealand to remove Makarov from their sanction lists might be his best bet to convince Canada to do the same, MacKay said.
“That’s not a homerun argument, but it is his probably best argument from what I can see: ‘How come you’re still listing me as problematic when three of your allies and fellow Commonwealth countries are all okay with me now?’” MacKay said.
Even if he doesn’t win the arbitration case, Makarov could use it to pressure Canadian politicians to remove him from the sanctions list, MacKay said.
It could also be an “attempt to embarrass Canada at an international level by saying here they are signatories to these treaties and look at all the violations they’re committing,” he said. “It’s definitely both a political pressure tactic as well as a direct litigation tactic; I don’t have any doubt about that.”
But Burnett indicated Thursday that even if Canada takes Makarov off its sanctions list, “it may not end things. He’s still entitled to compensation for the international treaty violations of Canada … I think it’s a very strong case.”
Burnett denied the arbitration is a pressure tactic to get Makarov off Canada’s sanctions list. “It’s a request to be compensated for the damage that Canada has caused.”
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