Business discussed the work of the International Register of Damages caused by russia’s aggression against Ukraine
Businesses in Ukraine need a practical mechanism for compensating for losses caused by Russian military aggression. To discuss the stages of forming such a compensation mechanism, in particular, to learn more about the functioning of the International Register of Damages Caused by the Russian Aggression against Ukraine, EBA companies met with Markiyan Kliuchkovskyi, Executive Director of the Register.
The Register is an international organization under the umbrella of the Council of Europe, part of the future International Compensation Mechanism designed to force Russia to compensate for the damage caused. The Registry began its work on July 1, 2023, and last week its Board of 7 independent members was appointed, and in three weeks its first meeting will take place. As an international organization that is not governed by Ukrainian legislation, the registry operates on the basis of international law.
At its core, the registry is an organized database for recording claims for damages. To register a claim in the register, it must meet three criteria: the damage must have been caused on the territory of Ukraine, the damage must have been caused on or after February 24, 2022, and there must be a link between the damage and Russian aggression. Currently, the starting date is February 24, as determined by the UN decision, but the registry team will promote the need to expand the timeframe to the beginning of Russian aggression in 2014 and add damages incurred in Crimea and Luhansk and Donetsk regions. Individuals and legal entities, as well as government representatives, will be able to apply to the registry. The type of damage will be as broad as possible, and the Board will additionally approve more specific categories, as well as technical criteria – what type of evidence is required, quantity and quality.
It is important to note that the registration in the register does not include assessment of losses or payment of compensation; this will be the responsibility of the compensation commission and the compensation fund, which are still being developed. The sources of the compensation fund should come from the Russian Federation. If there are no voluntary contributions, which seems quite likely, the fund will be replenished by the assets of the Russian Federation frozen abroad. Legal procedures for their confiscation are currently being developed, and this work is progressing quite actively, with many countries having already adopted this decision at the level of draft laws. Today, the state assets of the Russian Federation abroad amount to about $300 billion, but it is noted that this amount is not enough to cover all losses even as of today.
The register will operate exclusively in digital format, on the Diia platform, and all the necessary functionality is currently being developed. The estimated date of launch of this platform and the start of submitting applications is March 2024. Initially, this opportunity will be open to individuals in the context of real estate – this category will be a test case for the system. Each category has its own specifics, so the launch will be gradual. There are no deadlines for submitting information to the registry, and they will not be set as long as the war continues.
We are very grateful to Markiyan Kliuchkovskyi for meeting with the EBA companies and familiarizing ourselves with the progress in developing a compensation mechanism that is very necessary for business!