Kathrine Frich
He questioned the practical reality of the Canadian strategy
When international conflicts drag on, the battlefield usually shifts from borders to bank accounts.
Western governments have frozen billions in foreign wealth recently.
Now, a diplomatic showdown is heating up over the threat of permanent confiscation.
A sharp warning
Russian officials are drawing a hard line against Canadian lawmakers. Oleg Stepanov, the Russian ambassador to Canada, just issued a blunt threat regarding proposed financial laws.
Stepanov delivered his message during an interview with the Russian news outlet Izvestia. If Ottawa actually moves forward with plans to seize sanctioned wealth, he promises immediate retaliation.
At the heart of the clash are two legal proposals moving through the Canadian parliament. These bills would finally allow the government to take permanent ownership of frozen property.
Moving through parliament
The first piece of legislation is known as Bill S-214. Focused entirely on sovereign wealth, the measure already cleared the Canadian Senate in May. According to TASS, the House of Commons is now reviewing the text.
Lawmakers are also drafting a separate measure called Bill C-219. This targets private individuals and businesses under international sanctions, paving the way for state ownership of their assets.
Stepanov questioned the practical reality of the Canadian strategy during his media appearance.
“It is difficult to say what the authors mean by ‘Russian assets,’ and where in Canada they intend to look for them,” the ambassador told Izvestia.
Promising a response
Any actual seizure will trigger a rapid countermove, the Russian representative warned. He aggressively described the legislative push as a direct attack on basic property rights.
“In any case, Russia’s position on such encroachments on property, whether in Canada or elsewhere, is well known,” Stepanov stated. “Such actions are illegal and will prompt an immediate response from our side.”
He urged politicians in Ottawa to consider the broader legal and financial fallout. Confiscating foreign wealth could damage Canada’s reputation with global investors.
The grounded plane
The dispute involves more than just frozen bank accounts. A massive physical asset has been sitting idle at a Toronto airport since February 2022.
A massive An-124 cargo aircraft operated by Volga-Dnepr Airlines remains stranded on the tarmac. TASS reports the company is fighting a fierce legal battle in court to reclaim the grounded jet.
“The company continues to seek the return of the aircraft through legal means,” Stepanov said. “Our position remains unchanged: the aircraft must be returned to its owner, and if it is confiscated, Russia reserves the right to take retaliatory property-related and other measures.”
