Canada sets sights on assets of Russian oligarch Roman Abramovich

Canada announced on Monday that it would seize CAN$36 million ($26 million) in assets from Russian oligarch Roman Abramovich and divert the funds to Ukraine to help in the reconstruction of the country.

It marks the first time Canada will use a new law enacted in June to take the assets from a sanctioned individual or firm and give the money to a third party.

"Canada is the first G7 country to implement such measures, demonstrating its strong commitment to Ukraine, its reconstruction and holding accountable those who have profited from and supported President (Vladimir) Putin's regime," it said in a statement from the Global Affairs Canada office.

The procedure involves making a court application, which is expected to be filed this month, against a sanctioned individual to permanently seize their assets. The funds will not only help in rebuilding Ukraine, but provide "compensation to victims of the Putin regime's" actions, the statement said.

"Putin's oligarchs are complicit in Russia's illegal and barbaric invasion of Ukraine," Canada's Deputy Prime Minister and Minister of Finance Chrystia Freeland was quoted as saying in the statement.

"Canada will not be a haven for their ill-gotten gains, and today's announcement demonstrates our determination to ensure that Russia's elites pay the price for their support of Putin's brutal regime. It is just and appropriate for Russian assets to be used to help rebuild Ukraine."

The target is Abramovich's company Granite Holdings. He is also former owner of the Britain's Chelsea football club.

This follows Freeland's announcement last week that it would use CAN$115 million to be reaped from a 35% tariff on imports from Russia and Belarus to repair Kyiv's power grid.