Alberta
Russian billionaire couple claims Canadian sanctions are unjustified and unreasonable
Russian billionaire Andrey Melnichenko and his wife Aleksandra want to be taken off Canada’s sanctions list, claiming in Federal Court they’ve been wrongfully labelled as “elites and close associates” of the Russian regime.
The Melnichenkos filed two applications in the Federal Court of Canada in late March, seeking to quash a decision to place them under sanctions related to the war in Ukraine.
Court documents obtained by The Canadian Press reveal that the pair have been fighting their inclusion on Canada’s list of “designated persons” under its Russian sanctions regime since October 2022.
Back in February, the Trudeau government announced amendments to the Special Economic Measures (Russia) Regulations, which included placing the Melnichenkos on a list of 122 sanctioned individuals tied to the government of Russian President Vladimir Putin.
The couple claim the Canadian government has failed to provide them with any evidence to justify their inclusion on the list.
The list includes Russian elites and policymakers thought to be “engaged in activities that directly or indirectly facilitate, support, provide funding for or contribute to a violation or attempted violation of the sovereignty or territorial integrity of Ukraine.”
“Mr. Melnichenko does not have, and has not had, any association with the Government of Russia or President Putin,” Andrey Melnichenko’s application states. “He left Russia 20 years ago and has resided in Switzerland for the past 13 years. There is no reasonable basis for the Minister to believe otherwise.”
His wife, a former model and Serbian pop singer, claims she’s been wrongly targeted by Canadian sanctions, since she has no ties to Russia and doesn’t have any involvement in companies founded by her husband.
The couple’s Canadian lawyers, Scott Hutchison and Eleni Loutas with Henein Hutchison Robitaille LLP in Toronto, declined to comment on their cases.
Andrey Melnichenko’s public relations director, Alexander Byrikhin, did not immediately respond to an emailed request for comment.
Global Affairs Canada said in an emailed statement that it “cannot release information on individuals or entities listed under the Special Economic Measures (Russia) or comment on individual cases.”
“In response to Russia’s illegal and unjustifiable invasion of Ukraine, Canada has imposed hard-hitting sanctions against the Russian regime and those who enable it,” the statement said.
Aleksandra Melnichenko claims in her application that she’s a European citizen with “no connections to Russia whatsoever.”
She denies any involvement in two companies founded by her husband, fertilizer firm EuroChem, and SUEK, a coal company, both of which are owned by a trust administered in the European Union.
“She is merely a beneficiary of the discretionary trust managed by the independent trustee,” her application claims. “The latter is the legal owner of the named companies.”
In June 2022, EuroChem issued a “statement on ownership and control” following reports that Andrey Melnichenko had ceded ownership in the firm to his wife just before being sanctioned by the EU.
“EuroChem Group AG is not sanctioned, has never been sanctioned, and is free to continue with its important mission of supplying high-quality crop nutrients to world markets,” the statement said. “EuroChem is majority-owned and controlled by EU trustees of a trust, whose beneficiary, Aleksandra Melnichenko, has no majority ownership of, nor influence over, EuroChem. Therefore, EuroChem is not controlled by any sanctioned person.”
Aleksandra Melnichenko claims her “erroneous” inclusion on sanctions lists in the EU, Switzerland and Canada caused “difficulties for the companies’ operations worldwide, increasing the ongoing food and energy crisis.”
Andrey Melnichenko claims he’s been falsely portrayed as an “oligarch” in control of the companies, causing production disruptions at facilities in Europe after he was sanctioned by the EU.
His court application warns of similar “unintended consequences” in Canada, where the Russian sanctions list now includes more than 1,300 individuals.
It states that he’s not an oligarch but a “self-made businessman,” quoting a Forbes report referring to his fortune being made independently and free of ties to the Russian government under both Putin and Boris Yeltsin.
Melnichenko sits at number 58 on Forbes’ billionaires list with a net worth of more than $25 billion, which he amassed beginning in the early 1990s with a chain of currency exchange booths, before founding MDM Bank, and later EuroChem and SUEK.
“As has occurred in Europe, sanctioning Mr. Melnichenko could disrupt EuroChem and SUEK’s operations and detrimentally impact the global fertilizer supply which, in turn, has the potential to exacerbate the ongoing food shortage,” he claims in Federal Court.
Julia Webster, a Toronto-based international trade lawyer and partner at Baker McKenzie, said Canada’s approach to Russia contrasts with other countries currently under sanctions.
Unlike sanctions on Haiti, Myanmar, Iran and Sri Lanka, Canada’s sanctions on Russia represent a “true decoupling of economies,” she said, given the economic entanglements between western nations and Russia before its invasion of Ukraine.
She said Canada’s sanctions list mirrors that of allied nations.
“The sanctions are being implemented in co-ordination with Canada’s allies,” Webster said. “There is overlap on many of the prohibitions that are in place amongst the sanctions regimes between different countries and the people who are designated on those sanctions regimes, but there are also differences and Canada at this time seems to have actually one of the strictest regimes comparatively to its allies.”
In March 2022, the EU sanctioned Andrey Melnichenko, noting his attendance at a meeting held by Putin with Russian business leaders and oligarchs on the day of the invasion of Ukraine.
“The fact that he was invited to attend this meeting shows that he is a member of the closest circle of Vladimir Putin and that he is supporting or implementing actions or policies which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine, as well as stability and security in Ukraine,” the EU said.
Shortly after Andrey Melnichenko was sanctioned in the EU, Italian authorities seized the couple’s $600-million “Sailing Yacht A,” but their other vessel, Motor Yacht A, valued at $300 million, avoided a similar fate by docking in the United Arab Emirates at the time.
In August 2022, the United Stated designated Melnichenko as a “Putin enabler,” pointing to his past involvement in Russia’s financial services sector.
“Listing carries serious social, economic and personal consequences,” the couple claims.
This report by The Canadian Press was first published April 16, 2023.
Darryl Greer, The Canadian Press
Alberta
‘Weird and wonderful’ wells are boosting oil production in Alberta and Saskatchewan
From the Canadian Energy Centre
Multilateral designs lift more energy with a smaller environmental footprint
A “weird and wonderful” drilling innovation in Alberta is helping producers tap more oil and gas at lower cost and with less environmental impact.
With names like fishbone, fan, comb-over and stingray, “multilateral” wells turn a single wellbore from the surface into multiple horizontal legs underground.
“They do look spectacular, and they are making quite a bit of money for small companies, so there’s a lot of interest from investors,” said Calin Dragoie, vice-president of geoscience with Calgary-based Chinook Consulting Services.
Dragoie, who has extensively studied the use of multilateral wells, said the technology takes horizontal drilling — which itself revolutionized oil and gas production — to the next level.
“It’s something that was not invented in Canada, but was perfected here. And it’s something that I think in the next few years will be exported as a technology to other parts of the world,” he said.
Dragoie’s research found that in 2015 less than 10 per cent of metres drilled in Western Canada came from multilateral wells. By last year, that share had climbed to nearly 60 per cent.
Royalty incentives in Alberta have accelerated the trend, and Saskatchewan has introduced similar policy.
Multilaterals first emerged alongside horizontal drilling in the late 1990s and early 2000s, Dragoie said. But today’s multilaterals are longer, more complex and more productive.
The main play is in Alberta’s Marten Hills region, where producers are using multilaterals to produce shallow heavy oil.
Today’s average multilateral has about 7.5 horizontal legs from a single surface location, up from four or six just a few years ago, Dragoie said.
One record-setting well in Alberta drilled by Tamarack Valley Energy in 2023 features 11 legs stretching two miles each, for a total subsurface reach of 33 kilometres — the longest well in Canada.
By accessing large volumes of oil and gas from a single surface pad, multilaterals reduce land impact by a factor of five to ten compared to conventional wells, he said.
The designs save money by skipping casing strings and cement in each leg, and production is amplified as a result of increased reservoir contact.
Here are examples of multilateral well design. Images courtesy Chinook Consulting Services.
Parallel
Fishbone
Fan
Waffle
Stingray
Frankenwells
Alberta
Alberta to protect three pro-family laws by invoking notwithstanding clause
From LifeSiteNews
Premier Danielle Smith said her government will use a constitutional tool to defend a ban on transgender surgery for minors and stopping men from competing in women’s sports.
Alberta Premier Danielle Smith said her government will use a rare constitutional tool, the notwithstanding clause, to ensure three bills passed this year — a ban on transgender surgery for minors, stopping men from competing in women’s sports, and protecting kids from extreme aspects of the LGBT agenda — stand and remain law after legal attacks from extremist activists.
Smith’s United Conservative Party (UCP) government stated that it will utilize a new law, Bill 9, to ensure that laws passed last year remain in effect.
“Children deserve the opportunity to grow into adulthood before making life-altering decisions about their gender and fertility,” Smith said in a press release sent to LifeSiteNews and other media outlets yesterday.
“By invoking the notwithstanding clause, we’re ensuring that laws safeguarding children’s health, education and safety cannot be undone – and that parents are fully involved in the major decisions affecting their children’s lives. That is what Albertans expect, and that is what this government will unapologetically defend.”
Alberta Justice Minister and Attorney General Mickey Amery said that the laws passed last year are what Albertans voted for in the last election.
“These laws reflect an overwhelming majority of Albertans, and it is our responsibility to ensure that they will not be overturned or further delayed by activists in the courts,” he noted.
“The notwithstanding clause reinforces democratic accountability by keeping decisions in the hands of those elected by Albertans. By invoking it, we are providing certainty that these protections will remain in place and that families can move forward with clarity and confidence.”
The Smith government said the notwithstanding clause will apply to the following pieces of legislation:
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Bill 26, the Health Statutes Amendment Act, 2024, prohibits both gender reassignment surgery for children under 18 and the provision of puberty blockers and hormone treatments for the purpose of gender reassignment to children under 16.
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Bill 27, the Education Amendment Act, 2024, requires schools to obtain parental consent when a student under 16 years of age wishes to change his or her name or pronouns for reasons related to the student’s gender identity, and requires parental opt-in consent to teaching on gender identity, sexual orientation or human sexuality.
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Bill 29, the Fairness and Safety in Sport Act, requires the governing bodies of amateur competitive sports in Alberta to implement policies that limit participation in women’s and girls’ sports to those who were born female.”
Bill 26 was passed in December of 2024, and it amends the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”
As reported by LifeSiteNews, pro-LGBT activist groups, with the support of Alberta’s opposition New Democratic Party (NDP), have tried to stop the bill via lawsuits. It prompted the Smith government to appeal a court injunction earlier this year blocking the province’s ban on transgender surgeries and drugs for gender-confused minors.
Last year, Smith’s government also passed Bill 27, a law banning schools from hiding a child’s pronoun changes at school that will help protect kids from the extreme aspects of the LGBT agenda.
Bill 27 will also empower the education minister to, in effect, stop the spread of extreme forms of pro-LGBT ideology or anything else to be allowed to be taught in schools via third parties.
Bill 29, which became law last December, bans gender-confused men from competing in women’s sports, the first legislation of its kind in Canada. The law applies to all school boards, universities, and provincial sports organizations.
Alberta’s notwithstanding clause is like all other provinces’ clauses and was a condition Alberta agreed to before it signed onto the nation’s 1982 constitution.
It is meant as a check to balance power between the court system and the government elected by the people. Once it is used, as passed in the legislature, a court cannot rule that the “legislation which the notwithstanding clause applies to be struck down based on the Charter of Rights and Freedoms, the Alberta Bill of Rights, or the Alberta Human Rights Act,” the Alberta government noted.
While Smith has done well on some points, she has still been relatively soft on social issues of importance to conservatives , such as abortion, and has publicly expressed pro-LGBT views, telling Jordan Peterson earlier this year that conservatives must embrace homosexual “couples” as “nuclear families.”
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