Council of Europe finalizes draft to secure Ukraine reparations from Russia
Photo: Council of Europe sets stage for Ukraine's compensation mechanism (facebook.com/gnatovsky)
The Council of Europe has finalized the draft of a convention intended to create an international compensation mechanism for Ukraine over Russia's aggression, reports Secretary General Alain Berset.
"We have finalized the draft Convention for an International Claims Commission for Ukraine," Berset said.
He added that the convention lays the foundation for an international compensation mechanism.
"An important step forward for accountability — and for peace built on law, not force," Berset emphasized.
Reparations for Ukraine
Recently, the European Union proposed a new way to fund Ukraine’s defense: a reparations-based loan using frozen Russian assets.
European Commission President Ursula von der Leyen emphasized that Russia must bear the consequences of the war it initiated.
Earlier this year, Ukrainian Prime Minister Denys Shmyhal announced that the country had proposed imposing a tariff on imports from Russia.
Frozen Russian assets
Nearly €200 billion in Russian assets remain frozen following Russia’s full-scale invasion of Ukraine in 2022. Most are held by the Brussels-based financial company Euroclear.
Ukraine is expected to face a budget deficit of around €8 billion next year. The EU is exploring new ways to help amid limited domestic resources.
Previously, the European Commission had been working on a mechanism to utilize frozen Russian funds for Ukraine’s reconstruction.
Brussels is also assessing the readiness of national governments to utilize these assets in higher-risk investments. The aim is to generate additional revenue for Kyiv while increasing economic pressure on Moscow.
Supporters see the plan as a potential step toward further asset seizure and transferring funds to Ukraine as punishment for Russia’s refusal to compensate for war damages.
Western media reports that the European Commission has now developed a new creative scheme to direct billions of euros in frozen Russian assets to Ukraine.
