As the war in Ukraine continues into its second year, countries are stepping up support for the country. In a statement, Ukrainian Prime Minister Denys Shmyhal said that Canada has agreed to transfer a seized Antonov An-124 belonging to Russian cargo firm Volga-Dnepr, which has been racking up thousands in parking fees since February in Toronto. The aircraft is part of a new aid package that will see more seized Russian assets be moved to Ukraine to support its defense against the invasion.
The An-124 is going to Ukraine
The story began with a Volga-Dnepr Antonov An-124 freighter that found itself stuck at Toronto Pearson International Airport (YYZ) after Canada shut its skies to Russian aircraft on February 27th. Unable to fly out before the deadline, the plane began accruing parking charges of $1,650 a day, meaning it now owes approximately $683,000 for its overstay. The Canadian authorities formally seized the aircraft in response to the invasion.
After meetings in Toronto last week, Canada and Ukraine agreed to a new aid package, including the transfer of the Ukrainian-built An-124 and other assets from sanctioned Russian entities. This was announced in a statement by Ukrainian PM Denys Shmyhal, which came as part of a broader deal including fresh sanctions, a free trade deal, and much more.
Volga-Dnepr, once a major cargo operator, is on the list of sanctioned Russian firms, resulting in its aircraft being handed over to Ukraine. While the company once hoped to clear formalities and bring its freighter home, it will now likely find that its An-124 is being used in Ukraine to support the war effort.
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Volga-Dnepr struggling
The sanctions have been swift and crushing for Russian airlines globally, especially freight carriers. Volga-Dnepr, and its subsidiary AirBridgeCargo, has been forced to shutter operations in Western nations and hand back aircraft due to canceled leases. The firm let go of 200 pilots last year due to a much slimmer route network and was ordered to pay $406 million to BOC Aviation for three Boeing 747-8s stuck in Russia.
Even the aircraft left flying struggle to find spare parts and landing permissions due to missing insurance paperwork. On the commercial side, the Russian government has been supporting efforts to purchase aircraft from European lessors to the tune of $4 billion. However, this has been unsuccessful and litigation continues in courts for lessors trying to reclaim their aircraft. It's also unlikely that the EU would support exemptions for lessors to sell their aircraft at below-market rates.
For now, it looks unlikely many other countries will be able to send seized aircraft to Ukraine since more jets are only impounded due to legal action from lessors. But it does set a notable precedent for any future situations of the same kind.
What do you think about Canada's decision to send the seized An-124 to Ukraine? Let us know in the comments.