Compensation for damages from Russia's aggressive war: Tatiana Khutor presented 10 necessary steps at a meeting with ambassadors of countries in the Council of Europe

The chairperson of the Institute of Legislative Ideas, Tetiana Khutor, during the meeting with the ambassadors of the countries in the Council of Europe, presented 10 steps on the way to compensation for the losses through the confiscation of Russian assets (both private and state-owned) as well as the Global Tracker of the confiscation of Russian assets in the world.

What should the international community do and what do we expect from our partner countries?

- Keeping the asset freeze process effective. It is important that the assets of the aggressor and its accomplices continue to be frozen and cannot be used to finance the war.

- Increasing the volume of frozen assets by tracing Russian state assets and assets of nominal owners designated by the sanctioned individuals. States should continue to search for hidden assets, including conducting a full audit of Russian state assets on their territory and freezing them. This includes not only the gold and foreign exchange reserves of the Central Bank of the Russian Federation, but also land plots, buildings and other property owned by the Russian Federation or companies in which it has a stake. It is also important to identify those who nominally hold the assets of the sanctioned persons.

- Effectively management of frozen assets with the possibility of earning profit or bank interest thereof. It is important not only to physically preserve the asset, but also to preserve and, if possible, increase its economic value. In the case of frozen funds, they can be managed to preserve their value and generate profit or interest.

- Providing a mechanism for the confiscation of frozen assets. Existing international law must adequately respond to new challenges, including aggression by a superpower nuclear state, a member of the UN Security Council, against its independent neighbor. The approach to the inviolability of property should be reconsidered.

Why?

These steps will help to speed up the compensation for the damage caused by the aggressor. It will allow to generate a source of funds to compensate for the damage caused to individuals and companies (not just Ukrainian ones), as well as the state of Ukraine at large

When?

Compensation for the damage caused should be made as soon as possible, without waiting for the end of the war and a decision recognising the crime of aggression against Ukraine. The aggressor and all the aggressor's accomplices must now see the real effect of the rule "the one who caused the damage pays for it".

How can these steps be implemented?

At the global level - an international agreement (e.g. under the auspices of the CoE). The treaty could:

- set out an exception to the rule of absolute sovereign immunity for Russia, which grossly violates international law and jus cogens norms;

- set legal framework for the forfeiture (within a civil procedure) of assets of sanctioned persons who aid and abet Russian war;

- establish the obligations to conduct a full audit of Russian state assets, and to identify the nominal owners designated by the sanctioned persons with the subsequent freezing of such assets;

- provide for a clear prioritisation of compensation in compliance with the principles of fairness and proportionality

- create a unified fund with representation of the signatory states in the governing bodies and a high degree of transparency