In a significant move reflecting its commitment to accountability for Russia’s aggression, Canada has become the first nation outside Europe to sign a convention establishing a commission to adjudicate compensation claims linked to the ongoing conflict in Ukraine. This development, announced by Prime Minister Mark Carney’s government, aims to provide a legal framework for Canadians, Ukrainian expatriates, and Canadian businesses that have incurred losses as a result of the war.
Signing Ceremony in Brussels
Foreign Affairs Minister Anita Anand formalised the signing of the convention in Brussels on Monday. This agreement 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 extensive damages and injuries caused by its full-scale invasion that commenced in February 2022.
The initiative gained traction last December when 35 European nations and the European Union signed the convention at a conference in The Hague. The agreement is part of a three-phase compensation framework established 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 processed over 150,000 claims. The final component—a compensation fund to disburse the awarded amounts—has yet to be formed, with frozen Russian assets expected to provide a significant funding source.
Ratification and Future Steps
Before Canada can fully engage with the commission, it must ratify the convention. The commission’s operations hinge on the ratification by at least 25 countries alongside adequate funding. To date, only a handful of nations have completed this process. The Netherlands is set to host the commission, as confirmed by its foreign minister in December.
The war in Ukraine has had devastating repercussions, resulting in over 15,000 civilian fatalities and more than 41,000 injuries, alongside millions of displaced individuals and widespread destruction of infrastructure and property, according to a February report from the UN Human Rights Monitoring Mission in Ukraine. The World Bank and various organisations estimate that the cost to rebuild Ukraine over the next decade could reach a staggering US$588 billion.
Legal and Financial Implications
Canada has been proactive in leveraging its legislative framework to address the ramifications of the war. Four years ago, under former Prime Minister Justin Trudeau, legislation was enacted empowering the Canadian government to confiscate assets belonging to foreign entities affected by sanctions. Since 2022, the Royal Canadian Mounted Police (RCMP) has frozen over $185 million worth of assets tied to Russia, although the specific portion attributable to Russian state assets remains undisclosed.
The European financial landscape holds the majority of frozen Russian assets, with the Belgian securities depository Euroclear estimated to possess over €200 billion, primarily consisting of reserves from the Central Bank of Russia. Notably, about 7% of these sanctioned assets are denominated in Canadian currency, exceeding $20 billion. If these holdings are with Canadian financial institutions, they fall under Canadian jurisdiction, according to international affairs expert Fen Hampson from Carleton University.
A proposed Senate bill currently navigating through Parliament aims to bolster Canada’s authority by explicitly enabling the confiscation of foreign state assets. Bill S-214, which recently passed the Senate foreign affairs committee, would allow Ottawa to bypass the immunity typically afforded to foreign states under Canadian law, thereby allowing for the targeting of Kremlin assets in the pursuit of rectifying international injustices. Hampson indicated that any funds acquired from frozen Russian assets in Canada would likely be directed to the International Claims Commission for Ukraine, suggesting an aligned approach towards addressing the consequences of the conflict.
A Shift in Foreign Policy
Canada’s decision to sign this convention marks a notable divergence in its foreign policy compared to that of the United States, which has yet to endorse the claims commission for Ukraine. The previous Trump administration focused on a diplomatic resolution to the conflict, which raised concerns among Ukrainian and European officials regarding potential concessions to Russia.
Why it Matters
This pivotal agreement not only underscores Canada’s commitment to supporting Ukraine but also sets a precedent for international accountability in the face of aggression. By establishing a legal framework for compensation claims, Canada is asserting itself as a leader in the global response to the war, while simultaneously differentiating its foreign policy from that of the United States. The implications of this move could resonate well beyond the immediate crisis, fostering a stronger international coalition dedicated to upholding the principles of justice and reparation in the aftermath of conflict.
