Volga-Dnepr Airlines (VI, Ulyanovsk Vostochny) founder Aleksey Isaykin has appealed an August 2026 Canadian Federal Court decision that upheld his inclusion on Canada's sanctions list, according to a Federal Court of Appeal filing seen by ch-aviation.

Isaykin filed a notice of appeal on September 29, 2026, against Federal Court judge Ann Marie McDonald's August 11 judgment in Case T-3294-24, challenging the dismissal of his application for judicial review of the Canadian foreign affairs minister's refusal to remove him from the sanctions list.

Isaykin was added to Canada's sanctions list on April 5, 2023, under the Special Economic Measures (Russia) Regulations. The regulations target individuals whom the Canadian government has reasonable grounds to believe have directly or indirectly facilitated, supported, funded, or contributed to violations or attempted violations of Ukraine's sovereignty or territorial integrity.

Isaykin applied for delisting in June 2023, arguing that he no longer owned, controlled, or had any involvement with Volga-Dnepr Airlines (VDA), a Russian cargo carrier and subsidiary of the wider Volga-Dnepr Group, which is also subject to Canadian sanctions. Isaykin is a Russian and Cypriot citizen who was elected VDA chairman in 1990 and served as its president from 2002 to 2019.

The foreign affairs minister rejected his delisting request in October 2024, finding that Isaykin had been the majority shareholder of the Volga-Dnepr Group and its subsidiaries and had been actively involved in their management when they benefited from Russian government subsidies and contracts intended to ease or circumvent sanctions imposed on Russia.

The minister also viewed Isaykin's transfer of ownership of VDA in August 2022, shortly after sanctions were imposed, as a sanctions-evasion tactic. The minister concluded the transfer was "opaque", lacked a legitimate business rationale, and was intended to maintain Isaykin's control and influence over VDA while avoiding sanctions.

In her August judgment, McDonald dismissed Isaykin's judicial review application, finding that the minister had broad discretion under the Russia Regulations and that Isaykin had failed to establish that the decision was unreasonable or procedurally unfair.

The court rejected Isaykin's argument that the minister had relied on information that he had not been given an opportunity to address. It found that a March 2024 letter from Global Affairs Canada - the government department in Canada that manages the country's diplomatic ties and international trade - gave him sufficient notice of the case he had to meet.

The court found that the key issue was not whether VDA was state-owned, whether Isaykin was formally connected to the Russian government, or whether VDA provided military services, but whether activities involving VDA indirectly facilitated, supported or contributed to Russia's invasion of Ukraine.

Meanwhile, Volga-Dnepr's An-124-100, RA-82078 (msn 9773054559153), remains grounded at Toronto Pearson after being seized by Canadian authorities in February 2022.