Recovery of damages from Russia

On December 29, Joe Biden signed the law on mechanisms for compensation for damages caused to Ukraine by using money and property of Russians. Even earlier, the UN adopted the corresponding resolution.

One of the amendments to the US budget allows for the use of confiscated assets under US sanctions against the Russian Federation or related to attempts to avoid sanctions to help Ukraine. The list of potential victims of sanctions is quite extensive; you may see it here and here. But they also plan to spend money for Ukraine from other funds — this is clear, at least from the fact that “Ukraine” is mentioned 106 times in the American budget law.

We are talking about assets confiscated under criminal or civil forfeiture procedures or due to confiscating property of persons guilty of racketeering (I don’t know what the difference is, but racketeering is singled out separately in the law so that I will highlight it).

That is, one of the biggest dreams of Ukrainians has not yet been achieved — according to this law, you can take away not everything that Russians managed to earn during their lifetime. The law allows seizing only that property and money under sanctions, and after the court allows seizing in connection with the commission of a crime, for example, with money laundering, hacking, some kind of fraud, etc. Such property can be transferred to provide assistance to Ukraine and repair damage caused by Russian aggression.

And it is the Secretary of the State who will decide exactly where and how to use this. There is no comprehensive list of directions for the use of this money/property, but it is written that this is regulated by the Foreign Assistance Act of 1961.

Earlier, on November 14, the UN General Assembly voted for a resolution that defined:

Recognizes that the Russian Federation must be held to account for any violations of international law in or against Ukraine, including its aggression in violation of the Charter of the United Nations, as well as any violations of international humanitarian law and international human rights law, and that it must bear the legal consequences of all of its internationally wrongful acts, including making reparation for the injury, including any damage, caused by such acts;

• The General Assembly recognizes that the Russian Federation must be held to account for any violations of international law in or against Ukraine, including its aggression in violation of the Charter of the United Nations, as well as any violations of international humanitarian law and international human rights law, and that it must bear the legal consequences of all of its internationally wrongful acts, including making reparation for the injury, including any damage, caused by such acts;
• Recognizes the need for the establishment, in cooperation with Ukraine, of an international mechanism for reparation for damage, loss, or injury arising from the internationally wrongful acts of the Russian Federation in or against Ukraine;
• Recommends the creation by Member States, in cooperation with Ukraine, of an international Register of Damage to serve as a record of evidence and claims information on damage, loss, or injury.

Here you can read about the course of discussion of the Resolution.

That doesn’t mean the UN will create such a registry, which is perhaps a good thing, given how nimbly the organization works and how determined it has been to raise concerns in the months since the full-scale invasion. But it means that the UN recognizes the need for its creation and compensation for damages to Ukraine and, with deep concern, encourages the creation of such a register by the UN member states.

Logically, Ukraine should create such a register. The Deputy Minister of Justice, Ms. Mudra, stated in an interview that Ukraine is already preparing an international agreement on the compensation mechanism for damages, including this register. First of all, G7 countries will be encouraged to join the deal. There is no draft contract in public access.

May God give these slow but self-confident people health and success to finish what they started. Or at least start more actively.

✍️ Olya Veretilnyk