Ukrainian Deputy Justice Minister Iryna Mudra in an interview with Reuters spoke about the negotiations on the creation of an international compensation mechanism to compensate Russia for damages caused to Ukraine during the war.
Kiev notes that the main stumbling block in negotiations with the allies are the fears of some countries related to the creation of a legal precedent. According to these countries, such a precedent could jeopardize their own assets, providing a legal possibility to claim compensation for past conflicts in which these countries have been involved.
Ukraine hopes to conclude an international agreement which will become the legal basis for the transfer of Russian assets frozen by other countries for the restoration of Ukraine. First of all, we are talking about the frozen assets of the Central Bank of the Russian Federation.
According to Ukrainian government estimates, the damage to the country’s economy as a result of the Russian invasion exceeded $700 billion.
“We have no choice but to force Russia to pay reparations. If she doesn’t do it voluntarily, let’s fill the compensation fund with Russian money, foreign exchange reserves, Russian assets,” Irina Mudra said in an interview with Reuters. “They (some countries) fear that a precedent will be set…that their overseas assets will be affected.”
Mudra did not name the countries that have expressed concern about it, but said Ukraine was trying to assuage their concerns.
“This treaty will be designed only for a situation of war of flagrant aggression”, in violation of the United Nations Charter and the judgments of the International Court of Justice, “so that it cannot be used for other conflicts “, she explained.
Negotiations on the creation of a compensation mechanism are ongoing after the adoption by the United Nations General Assembly in November 2022 of a resolution calling Russia responsible for its large-scale invasion of Ukraine and containing recognition that Russia must pay reparations to Ukraine.
This UN resolution recommends member states, including Ukraine, to create a registry to document all damages, losses and casualties caused by the invasion, which killed thousands of civilians, displaced millions and destroyed many cities.
Western countries have frozen over $300 billion. about half of Russia’s international reserves.
Irina Mudra stressed that, despite the existing obstacles, Ukraine hopes to create an international compensation mechanism during this year. According to his estimates, the agreement on the creation of an international register of damage inflicted on Ukraine will be ready in May and signed by Ukraine’s western partners in early June.
“This is the first – and extremely important – step in creating this compensation mechanism,” said Irina Mudra. “The process has started. It is inevitable, there is no going back.
