Volga-Dnepr Airlines LLC v. Canada

Claimants

The Claimant, Volga-Dnepr Airlines LLC is a limited liability company incorporated in the Russian Federation under Russian laws.

Agreements

Agreement Between the Government of Canada and the Government of the Union of Soviet Socialist Republics for the Promotion and Reciprocal Protection of Investments (Canada-USSR FIPA).

Articles

• Article II (Promotion of Investment)
• Article III (Protection of Investment)
• Article VI (Expropriation)

Damages claimed

Restitution of the aircraft, and if not possible, no less than US$ 100,000,000 in compensation.

Status

Active

Arbitration rules

United Nations Commission on International Trade Law (UNCITRAL)

Summary

Procedural history

On August 14, 2023, Volga-Dnepr Airlines LLC served the Government of Canada with a Notice of Intent (NOI) to Submit a Claim to Arbitration. On August 23, 2024, Volga-Dnepr Airlines filed a Notice of Arbitration (NOA) against the Government of Canada. The tribunal is composed of Professor Lawrence G. S. Boo (presiding), Ms. Jean Kalicki, and Professor Georges Affaki.

Factual overview and nature of the claim

The Claimant alleges that measures adopted by Canada in response to Russia’s illegal invasion of Ukraine have destroyed the Claimant’s ability to carry out its air transportation business in Canada. Specifically, it alleges that the closure of Canadian airspace to Russian air carriers on February 27, 2022 has prevented an AN-124-100 aircraft leased by the Claimant from departing Toronto Pearson International Airport, and that the subsequent seizure of the aircraft by the Government on June 8, 2023, pursuant to an order issued by the Governor-in-Council (SOR/2023-120) under the Special Economic Measures Act, violates certain provisions of the Canada-USSR FIPA.

The Claimant is seeking restitution of the aircraft, and if not possible, no less than US$ 100,000,000 in compensation.

Legal documents

This case is governed by the 1976 UNCITRAL Rules. Additional documents related to this case can be viewed at the website of the Permanent Court of Arbitration as they become available. Copies of all legal documents posted have been prepared in a language of operation of the Tribunal or Court in question. The Government of Canada has not modified or changed them in any way. As such they have not been translated from the original.

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