In a significant move underscoring its 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 invasion. The announcement was made on Monday, with Foreign Affairs Minister Anita Anand signing the convention in Brussels. This action signals Ottawa’s resolve to hold Moscow accountable for the extensive damage caused during the ongoing conflict, which escalated in February 2022.
Establishing the International Claims Commission for Ukraine
The convention is designed to create the International Claims Commission for Ukraine, a body that will evaluate claims and determine the compensation owed by Russia for the destruction, loss, or injury inflicted during its military operations. The Canadian government stated that not only Ukrainians currently residing in Ukraine but also Canadians and companies with ties to Ukraine who have experienced losses will be eligible to submit claims.
This initiative aligns with previous efforts by 35 European nations and the European Union, who collectively signed the convention during a conference in The Hague last December. It represents the second phase of a comprehensive three-part compensation plan developed under the auspices of the Council of Europe, a 46-member human rights organisation. The first part, the Register of Damage for Ukraine, has already received over 150,000 claims. The final element—a compensation fund to disburse awards made by the commission—has yet to be set up, but frozen Russian assets are anticipated to be a primary source for funding.
Canada’s Next Steps in the Ratification Process
Before Canada can fully participate in the commission’s activities, it must ratify the convention. The commission itself requires the ratification of at least 25 nations and sufficient funding to commence operations, with only a handful of countries having met these criteria thus far. The Netherlands has been designated as the host nation for the commission, as confirmed by its foreign minister last December.
The war’s toll on Ukraine has been staggering; reports from the UN Human Rights Monitoring Mission indicate that over 15,000 civilians have lost their lives, and more than 41,000 have sustained injuries. Additionally, millions have been displaced, and significant civilian infrastructure has been damaged or destroyed. The World Bank has estimated that rebuilding efforts over the next decade could cost upwards of US$588 billion.
Canadian Legislative Measures Against Russian Assets
Canada’s commitment to initiating this convention is bolstered by legislative measures enacted during the tenure of former Prime Minister Justin Trudeau. Four years ago, the Canadian government introduced laws enabling the confiscation of assets belonging to foreign individuals and entities under sanctions. Since the onset of the conflict in Ukraine, the Royal Canadian Mounted Police (RCMP) has reportedly frozen over CAD 185 million in assets linked to Russian sanctions, although specifics regarding the proportion of state assets remain undisclosed.
Notably, most of the frozen Russian assets globally are believed to be concentrated in Europe, particularly within Belgium’s Euroclear system, which reportedly holds more than €200 billion in sanctioned Russian assets. A recent assessment indicated that approximately 7% of these holdings are denominated in Canadian currency, amounting to over CAD 20 billion. If these assets are held by Canadian financial institutions, they fall under Canadian jurisdiction, as highlighted by Fen Hampson, a professor of international affairs at Carleton University.
In addition to these measures, a Senate bill currently progressing through Parliament seeks to enhance Canada’s capacity to seize foreign state assets. Bill S-214, which recently advanced from the Senate foreign affairs committee, aims to grant Ottawa explicit authority to bypass the immunity typically accorded to foreign governments under Canadian law. This would enable the Canadian government to target Kremlin assets, thereby addressing perceived injustices on the international stage.
A Distinct Foreign Policy Vision
Canada’s decision to sign this convention comes at a pivotal moment as the Carney administration aims to differentiate its foreign policy from that of the United States. The current US administration has not expressed support for the claims commission for Ukraine, opting instead for direct diplomatic efforts to resolve the conflict—a strategy that has raised concerns among Ukrainian and European leaders regarding the potential for rewarding Russian aggression.
Why it Matters
This landmark signing reflects Canada’s determination to take a stand against Russian aggression and support Ukraine amidst a devastating war. By participating in the establishment of a compensation mechanism, Canada not only reinforces its commitment to international justice but also positions itself as a leader among nations advocating for accountability in the wake of conflict. The actions taken by Ottawa may set a precedent for other nations, encouraging a united front against violations of international law and the need for reparations in the aftermath of war.
