In a significant move underscoring its commitment to accountability, Canada has become the first nation outside Europe to sign a convention aimed at creating a commission for adjudicating compensation claims against Russia for its ongoing war in Ukraine. The signing, which took place on Monday in Brussels, is a clear indication of Ottawa’s determination to support Ukraine and hold Moscow responsible for the devastation caused by its military actions.
A Landmark Agreement
Foreign Affairs Minister Anita Anand signed the convention that will establish the International Claims Commission for Ukraine. This body is designed to assess and determine compensation owed to Canadians, Ukrainians residing in Canada, and Canadian businesses that have suffered losses due to the conflict. The convention was first introduced at a conference in The Hague last December, where it was endorsed by 35 European nations and the European Union, marking a collaborative effort to address the repercussions of Russia’s full-scale invasion, which began in February 2022.
The commission’s establishment is seen as a crucial part of a broader three-part compensation strategy initiated by the Council of Europe, a 46-nation human rights organisation. The first phase of this plan, known as the Register of Damage for Ukraine, has already received over 150,000 claims. However, the third component—a compensation fund to pay the awards issued by the commission—remains to be established, with frozen Russian assets likely serving as the primary funding source.
Steps Toward Implementation
Before Canada can fully participate in the commission, it must ratify the convention. The commission itself is contingent upon at least 25 countries ratifying the agreement and securing sufficient funding. Presently, only a limited number of nations have done so. The Netherlands has been designated as the location for the commission’s headquarters, as confirmed by the Dutch foreign minister last December.
The humanitarian toll of the conflict has been staggering, with UN reports estimating over 15,000 civilian deaths and more than 41,000 injuries. Millions have been displaced, and infrastructure has suffered extensive damage. The World Bank has projected that the cost of rebuilding Ukraine over the next decade could reach as high as US$588 billion.
Strengthening Legal Frameworks
Canada’s commitment to the convention is also bolstered by legislative measures enabling the confiscation of assets belonging to foreign entities under sanctions. Four years ago, legislation was passed allowing the Canadian government to seize assets frozen due to sanctions, a tool that has already been employed against several targets, including holdings linked to Russian billionaire Roman Abramovich.
The Royal Canadian Mounted Police (RCMP) reports that over $185 million in assets have been frozen since the onset of the war. While the majority of frozen Russian state assets are believed to reside in Europe—particularly at the Belgian securities depository Euroclear—there are substantial Canadian-denominated assets that could also be affected by Canadian law.
Currently, a Senate bill in Parliament seeks to enhance Canada’s ability to confiscate foreign state assets, allowing the government to bypass the typical legal immunity granted to foreign nations. This legislative change aims to empower Ottawa to target Kremlin assets more effectively, potentially using these funds to support the International Claims Commission for Ukraine.
Diverging from U.S. Policy
Canada’s decision to sign the convention is also a strategic move to differentiate its foreign policy from that of the United States. While the U.S. has opted for direct diplomatic efforts to resolve the conflict, there has been no endorsement of the claims commission, a stance that has raised concerns among Ukrainian and European officials about the potential for compromising on Russian aggression.
As Canada moves forward with its participation in this international framework, it signals a robust commitment to supporting Ukraine and ensuring that accountability is pursued on the global stage.
Why it Matters
This landmark agreement not only sets a precedent for international accountability but also positions Canada as a leader in supporting Ukraine amidst ongoing aggression. By establishing a framework for compensation claims, Canada is not only aiding those directly affected by the conflict but also reinforcing the principle that nations must be held accountable for their actions. As the geopolitical landscape continues to evolve, this move may also influence other nations to take a firmer stance against aggression, shaping the future of international relations in a post-conflict scenario.