In a significant move underscoring its commitment to accountability, Canada has emerged as the first nation outside Europe to endorse a convention that aims to establish a commission for adjudicating compensation claims against Russia for its ongoing aggression in Ukraine. The announcement made on Monday, reflects the Carney government’s resolve to hold Moscow responsible for the devastating impacts of its invasion, which began in February 2022.
Signing of the Convention in Brussels
Foreign Affairs Minister Anita Anand formalised Canada’s participation in this pivotal agreement by signing the convention in Brussels. This initiative will pave the way for the creation of the International Claims Commission for Ukraine, a mechanism that will evaluate claims and determine compensation owed by Russia for damage, loss, or injury caused by its military actions. The agreement extends eligibility for claims not only to Canadians and Ukrainian nationals residing in Canada but also to Canadian businesses that have suffered losses as a result of the conflict.
The convention was initially endorsed by 35 European nations and the European Union during a conference held in The Hague last December. This agreement is part of a broader three-phase compensation strategy devised under the auspices of the Council of Europe, an organisation dedicated to human rights across its 46 member states. The first phase, known as the Register of Damage for Ukraine, has already recorded over 150,000 claims. However, the establishment of a third component—a compensation fund to disburse any payments awarded by the commission—remains pending, with frozen Russian assets identified as a likely source for this funding.
Ratification and Operational Challenges Ahead
While Canada’s signing is a significant step, the convention requires ratification by the Canadian Parliament before it becomes fully effective. Additionally, the commission itself cannot commence operations until at least 25 nations have ratified the convention and adequate funding has been secured. As of now, a limited number of countries have taken this critical step, with the Netherlands designated as the host nation for the commission.
The ongoing war has had catastrophic humanitarian consequences, with over 15,000 civilian deaths and more than 41,000 injuries reported, according to a recent UN Human Rights Monitoring Mission in Ukraine. The conflict has displaced millions and caused widespread devastation to civilian infrastructure. A World Bank estimate from December projected that rebuilding Ukraine will cost an astronomical US$588 billion over the next decade.
Canada’s Legislative Efforts to Target Russian Assets
In a proactive response to the crisis, the previous Trudeau administration enacted legislation enabling Canada to seize assets belonging to foreign entities frozen under sanctions. This statutory power has allowed Ottawa to target assets associated with individuals such as Russian oligarch Roman Abramovich, with the intention of redirecting those funds to support Ukraine.
The Royal Canadian Mounted Police (RCMP) has reported freezing over $185 million in assets since the onset of the conflict, although it remains unclear how much of this sum consists of Russian state assets. The majority of frozen Russian state assets are believed to be concentrated in Europe, particularly within the Belgian securities depository Euroclear, which reportedly holds in excess of €200 billion in sanctioned Russian assets, including substantial reserves from the Central Bank of Russia.
Recent discussions in Parliament have centred around Bill S-214, which is designed to bolster Canada’s ability to confiscate foreign state assets explicitly. This legislative proposal has passed through the Senate foreign affairs committee and, if approved, would empower the Canadian government to override the traditional legal immunity that foreign states enjoy. Such a measure would enable direct action against Kremlin assets in pursuit of justice for international transgressions.
A Divergence in Foreign Policy
Canada’s decision to sign the convention occurs in a geopolitical context where the Carney administration seeks to differentiate its foreign policy from that of the United States. Unlike Canada, the current U.S. administration has not endorsed the claims commission for Ukraine, opting instead for a diplomatic approach aimed at ending hostilities—an approach that has raised concerns among Ukrainian and European leaders about potentially appeasing Russian aggression.
Why it Matters
Canada’s pioneering move to engage with the International Claims Commission signifies a robust commitment to international justice and accountability. By actively participating in this initiative, Canada not only reinforces its support for Ukraine but also sets a precedent for other nations to follow. This action could catalyse wider global efforts to hold aggressors accountable and provide much-needed reparations to the victims of the ongoing conflict. As the situation continues to evolve, the effectiveness of this commission may hinge on securing sufficient international backing and funding, making Canada’s leadership role all the more crucial in the quest for justice.