Volga-Dnepr will reportedly take legal action against Canada for its seized Antonov AN-124 freighter aircraft.

Russia’s Interfax news agency reported that the cargo airline had sent an official notice to the Canadian authorities with a proposal to resolve the dispute regarding the arrested An-124-100 aircraft, which has been at Toronto airport since February 27, 2022.

"Volga-Dnepr sent an official notice informing Canada of the existence of a dispute between the company and the country in connection with the illegal seizure of the An-124-100 cargo aircraft and also invites the country's authorities to resolve the dispute amicably in accordance with Article 9 of the agreement between the USSR and Canada on the encouragement and mutual protection of investments dated November 20, 1989," the carrier reportedly said.

Volga-Dnepr was said to have sent copies of the notification to the Prime Minister of Canada, as well as the Governor General, the Ministers of Finance, Foreign Affairs of Justice and the Attorney General.

"If the dispute is not resolved within six months of Canada's receipt of the notification, Volga-Dnepr Airlines will formally initiate arbitration proceedings," Interfax said, quoting the Russian cargo airline.

It added that Volga-Dnepr, nonetheless, "remains open to negotiations" with Canadian representatives to resolve the issue and return the aircraft.

The airline reportedly said the aircraft was carrying out a humanitarian flight commissioned by the Canadian government with 475 cubic meters/60,900 kg of COVID-19 test kits from China.

"However, after unloading, the aircraft was banned from leaving Canadian territory due to the spread of a newly issued NOTAM prohibiting Russian airlines from using the country's airspace," the report added.

Interfax added: "In June, it became known that the Canadian authorities ordered the arrest of the Russian An-124. It was also reported that Canadian Prime Minister Justin Trudeau announced plans to transfer this aircraft to Ukraine."

In June, the Government of Canada announced that it had ordered the seizure of a Russian-registered cargo aircraft currently grounded at Toronto Pearson Airport, pursuant to the Special Economic Measures Act.

"The targeted Russian aircraft, an Antonov 124, is believed to be owned by a subsidiary of Volga-Dnepr Airlines LLC and Volga-Dnepr Group, two entities against which Canada recently imposed sanctions due to their complicity in President Putin's war of choice," the statement released by Global Affairs Canada, said then.

It added that the "seizure of the asset" was made possible by the new asset seizure and forfeiture authorities under Canada's autonomous sanctions regimes put forward in Budget 2022 and is in direct response to Russia's full-scale invasion of Ukraine that began on February 24, 2022.