In a significant move, Canada has become the first nation outside of Europe to endorse a convention aimed at establishing a commission responsible for adjudicating compensation claims against Russia for its military actions in Ukraine. This initiative, announced on Monday, underscores Ottawa’s dedication to ensuring accountability for the ongoing conflict that has wrought havoc since February 2022.
Establishing the International Claims Commission for Ukraine
On Monday, Foreign Affairs Minister Anita Anand formalised Canada’s commitment by signing the convention in Brussels. This agreement paves the way for the creation of the International Claims Commission for Ukraine, which will assess and determine the financial reparations owed by Russia for the extensive damage, loss, and suffering inflicted upon Ukrainians and their allies.
Eligibility for claims extends to Canadians, Ukrainian nationals residing in Canada, and Canadian enterprises that have endured losses due to the war. This inclusive approach seeks to recognise the widespread impact of the conflict on a diverse range of stakeholders.
The Broader Context of the Convention
The convention, initially signed by 35 European nations and the European Union at a conference in The Hague last December, represents the second phase of a three-part compensation framework devised under the auspices of the Council of Europe. The first element, the Register of Damage for Ukraine, has already received over 150,000 claims, highlighting the extensive toll the war has taken.
The third aspect—a compensation fund to facilitate payments determined by the commission—remains in development, with frozen Russian assets likely to provide the necessary financial backing. However, before the commission can commence operations, at least 25 countries must ratify the convention, and sufficient funding must be secured. To date, only a handful of nations have completed the ratification process.
The Netherlands has been designated as the host country for the commission, as confirmed by its foreign minister in December.
The Human Toll of the Conflict
The ramifications of Russia’s aggression have been devastating. According to a February report from the UN Human Rights Monitoring Mission in Ukraine, the war has resulted in over 15,000 civilian fatalities and more than 41,000 injuries. Millions have been displaced, and both civilian infrastructure and properties have suffered extensive damage.
The financial burden of rebuilding Ukraine is staggering, with the World Bank and various other organisations estimating costs to exceed $588 billion over the next decade. In light of this, Prime Minister Mark Carney has previously committed $270 million in military aid for Ukraine during a recent summit in Armenia.
Strengthening Legal Frameworks for Accountability
In a related development, Canada has been actively targeting the assets of foreign nationals under sanctions law. Four years ago, the government, under then-Prime Minister Justin Trudeau, enacted legislation allowing for the confiscation of foreign entities’ assets. This legal framework has enabled Ottawa to pursue various targets, including assets linked to Russian billionaire Roman Abramovich, with the aim of redirecting these funds to support Ukraine.
According to the Royal Canadian Mounted Police (RCMP), over $185 million in assets has been frozen in Canada since the onset of the conflict in 2022. While the RCMP has not specified how much of this constitutes Russian state assets, it is estimated that the majority of frozen Russian assets are held in Europe, particularly within the Belgian securities depository Euroclear, which reportedly manages over €200 billion in sanctioned Russian assets. Notably, approximately 7% of these holdings are denominated in Canadian dollars, amounting to more than $20 billion.
Currently, a Senate bill, Bill S-214, is progressing through Parliament with the intention of further empowering the Canadian government to confiscate foreign state assets. If passed, this legislation would allow Ottawa to bypass the immunity usually granted to foreign states, thereby enabling the government to actively pursue Kremlin assets in the pursuit of justice for international transgressions.
As noted by Professor Fen Hampson of Carleton University, any funds obtained from confiscated Russian assets are likely to be directed towards the International Claims Commission for Ukraine. He stated, “All the pieces of the jigsaw are falling into place.”
Why it Matters
Canada’s decision to sign this convention signifies a pivotal moment in the international response to Russia’s aggression. While the United States has refrained from endorsing the claims commission, Canada’s proactive stance not only reinforces its commitment to supporting Ukraine but also delineates its foreign policy from that of its southern neighbour. As the war continues to unfold, Canada’s actions may set a precedent for other nations to follow, potentially shaping the global approach to accountability in the face of state-sponsored aggression.
