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The future mechanism of compensation for damages caused by the military aggression of the Russian Federation

30/ 05/ 2023
  Author: Oleksandr Chornukha, attorney at Dynasty law & investment The compensation mechanism was discussed at an extended meeting of the committee of the Association for the Restoration of Ukraine with the participation of the Deputy Minister of Justice of Ukraine for European Integration. Compensation will be made at the expense of the seized funds of the Russian Federation located on the territory of other states (assets of the Central Bank and assets of persons involved in the war in Ukraine). The Committee of the Association on Reconstruction of Ukraine proposes to apply the following mechanism in the future: concluding a multilateral agreement and changing the legislation of countries regarding the possibility of transferring seized Russian funds to Ukraine; creation of a fund to which all seized funds will be transferred; creating a register of losses; creation of the Commission in the future, which will consider claims for recovery of compensation. The commission will consider claims based on the register of losses and make a decision on compensation/non-compensation. The commission will be established as a separate body with its office and secretariat in one of the European countries. The members of the commission will be international specialists. It is the partnership and support of the international community that is important for the successful operation of the damage register and the creation of the Compensation Mechanism for the restoration of the property rights of the affected persons.

Author: Oleksandr Chornukha, attorney at Dynasty law & investment

The compensation mechanism was discussed at an extended meeting of the committee of the Association for the Restoration of Ukraine with the participation of the Deputy Minister of Justice of Ukraine for European Integration.

Compensation will be made at the expense of the seized funds of the Russian Federation located on the territory of other states (assets of the Central Bank and assets of persons involved in the war in Ukraine).

The Committee of the Association on Reconstruction of Ukraine proposes to apply the following mechanism in the future:

  • concluding a multilateral agreement and changing the legislation of countries regarding the possibility of transferring seized Russian funds to Ukraine;
  • creation of a fund to which all seized funds will be transferred;
  • creating a register of losses;
  • creation of the Commission in the future, which will consider claims for recovery of compensation. The commission will consider claims based on the register of losses and make a decision on compensation/non-compensation. The commission will be established as a separate body with its office and secretariat in one of the European countries. The members of the commission will be international specialists.

It is the partnership and support of the international community that is important for the successful operation of the damage register and the creation of the Compensation Mechanism for the restoration of the property rights of the affected persons.

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