In a significant move reflecting its unwavering commitment to Ukraine, Canada has become the first nation outside Europe to sign a convention aimed at establishing a commission responsible for adjudicating compensation claims against Russia for its ongoing war. This decision, announced on Monday, underscores Ottawa’s dedication to holding Moscow accountable for its military actions in Ukraine, which began in February 2022.
Signing Ceremony in Brussels
The Foreign Affairs Minister, Anita Anand, signed the convention in Brussels, marking a pivotal moment for both Canada and Ukraine. The agreement opens the door for Canadians, Ukrainian nationals residing in Canada, and Canadian businesses affected by the conflict to file claims for compensation. This initiative is part of a broader effort to set up the International Claims Commission for Ukraine, which will assess claims and determine the compensation owed by Russia for damages caused during the war.
The convention was previously endorsed by 35 European nations and the European Union during a conference in The Hague last December. It represents the second phase of a three-part compensation framework developed under the auspices of the Council of Europe, a human rights organisation comprising 46 member states. The first phase, a Register of Damage for Ukraine, has already accumulated over 150,000 claims. The third component, which involves creating a compensation fund to pay out any awards made by the commission, has yet to be established. It is widely anticipated that frozen Russian assets will serve as the primary funding source for this initiative.
Steps Forward for Canada
While Canada has signed the convention, it must still undergo ratification before gaining full membership status. The commission cannot commence its work until at least 25 countries have ratified the agreement and adequate funding has been secured. To date, only a handful of countries have completed this process. The Netherlands has been designated as the home of the commission, as confirmed by the Dutch foreign minister last December.
The impact of Russia’s invasion has been catastrophic, resulting in over 15,000 civilian deaths and more than 41,000 injuries, alongside the displacement of millions and widespread destruction of infrastructure. According to a report from the UN Human Rights Monitoring Mission in Ukraine, the cost of rebuilding the war-torn nation over the next decade is estimated to reach an astonishing US$588 billion.
Legal Framework for Asset Confiscation
Canada has already laid the groundwork for asset confiscation in response to the conflict. In 2019, the government, under then-Prime Minister Justin Trudeau, passed legislation enabling the confiscation of frozen assets belonging to foreign entities. This legislative measure has allowed Ottawa to pursue several Russian targets, including assets linked to billionaire Roman Abramovich, with the intention of directing any recovered funds to Ukraine.
The Royal Canadian Mounted Police (RCMP) reports that since 2022, more than $185 million in assets have been frozen in Canada as part of sanctions against Russia. The specific breakdown of these assets, particularly those belonging to the Russian state, remains unclear. Most frozen Russian assets are believed to be held in Europe, with estimates suggesting that the Belgian securities depository Euroclear holds over €200 billion of Russian assets under sanctions, of which approximately 7% are Canadian-denominated, amounting to over $20 billion.
A proposed Senate bill, Bill S-214, currently moving through Parliament, aims to bolster Canada’s authority by granting explicit powers to confiscate foreign state assets. This legislation, which recently passed the Senate foreign affairs committee, would allow Ottawa to override the usual immunity protections afforded to foreign states under Canadian law, thereby enabling the government to target Kremlin assets in pursuit of justice.
Policy Distinctions from the United States
Canada’s decision to sign this convention also serves to differentiate its foreign policy from that of the United States, which has yet to endorse the claims commission. The current U.S. administration has focused on direct diplomatic efforts to resolve the conflict, a strategy that some Ukrainian and European officials fear may inadvertently reward Russian aggression.
Why it Matters
Canada’s proactive stance in signing the convention signals a significant shift in international support for Ukraine, reinforcing its role as a leader in the global effort to hold Russia accountable. As the consequences of the war continue to unfold, this initiative not only provides a framework for compensation but also sets a precedent for international cooperation in seeking justice for victims of aggression. With the potential to channel frozen assets into meaningful reparations, Canada’s actions may inspire other countries to follow suit, thereby strengthening the resolve against violations of international law.
