In a significant move, Canada has become the first nation outside Europe to endorse a convention establishing a commission dedicated to adjudicating compensation claims against Russia for its ongoing invasion of Ukraine. This decision underscores Ottawa’s commitment to ensuring accountability for the military aggression that has caused extensive devastation since February 2022.
Signing of the Convention
On Monday, Foreign Affairs Minister Anita Anand formalised Canada’s participation in the initiative by signing the convention in Brussels. This agreement aims to create the International Claims Commission for Ukraine, which will be responsible for evaluating claims and determining the financial reparations owed by Russia for the widespread damage, loss, and suffering inflicted during the conflict. Canadians, Ukrainians residing in Canada, and Canadian businesses affected by the war will be eligible to submit claims for compensation.
The convention originally garnered signatures from 35 European countries and the European Union during a conference in The Hague last December. It constitutes the second segment of a comprehensive three-part compensation framework devised by the Council of Europe, a coalition of 46 nations focused on human rights. The initial phase, the Register of Damage for Ukraine, has already accumulated over 150,000 claims. However, the third element—a compensation fund to disburse awards issued by the commission—remains to be established, with frozen Russian assets likely serving as the primary funding source.
The Road Ahead
Before Canada can fully join the commission, it must ratify the convention, which requires the endorsement of at least 25 countries to commence operations. Currently, only a few nations have completed this ratification process. The Netherlands is set to host the commission, as confirmed by the Dutch Foreign Minister last December.
The ongoing war has had catastrophic human and economic consequences, resulting in over 15,000 civilian deaths and more than 41,000 injuries, according to a report from the UN Human Rights Monitoring Mission in Ukraine. Millions have been displaced, and the infrastructure of Ukraine has been severely damaged. The World Bank estimates that the cost of rebuilding the war-torn nation could reach a staggering US$588 billion over the next decade.
Canadian Actions Against Russian Assets
In a related context, Canada has been actively utilising legislation passed under former Prime Minister Justin Trudeau, which allows the government to seize assets belonging to foreign entities sanctioned due to the conflict. Since 2022, the Royal Canadian Mounted Police (RCMP) reports that over $185 million in Russian assets have been frozen in Canada. However, the exact proportion of these assets that belong to the Russian state remains unclear.
The majority of frozen Russian assets globally are believed to be held in Europe, particularly by Euroclear, a Belgian securities depository, which reportedly manages over €200 billion in sanctioned Russian assets, including significant reserves of the Central Bank of Russia. Notably, around 7 per cent of these sanctioned holdings are denominated in Canadian currency, amounting to over $20 billion. If these assets are maintained within Canadian financial institutions, they are subject to Canadian law, as noted by Fen Hampson, a professor of international affairs at Carleton University.
Further bolstering Ottawa’s legal framework, a Senate bill currently progressing through Parliament seeks to enhance Canada’s ability to confiscate foreign state assets. Bill S-214, which has recently passed the Senate Foreign Affairs Committee, would empower the Canadian government to override the usual immunity granted to foreign states under domestic law. This would enable action against Kremlin assets in pursuit of rectifying international injustices. According to Professor Hampson, any funds confiscated from frozen Russian assets in Canada could potentially be redirected to the International Claims Commission for Ukraine.
Differentiating Canadian Foreign Policy
Canada’s decision to sign the convention comes at a time when the Carney government is keen on distinguishing its foreign policy from that of the United States, which has yet to endorse the claims commission for Ukraine. The previous Trump administration had opted for direct diplomatic engagement aimed at resolving the conflict—a strategy that raised concerns among Ukrainian and European officials about the potential for such negotiations to inadvertently reward Russian aggression.
Why it Matters
Canada’s recent actions signal a robust commitment to international law and accountability in the face of war crimes. By establishing a pathway for compensation claims against Russia, Ottawa not only supports Ukraine in its fight for justice but also sets a precedent for global cooperation in addressing violations of sovereignty and human rights. This initiative could inspire similar measures from other nations, reinforcing the international community’s resolve to hold aggressors accountable and ensure that victims of conflict receive the reparations they deserve.