Ukraine took the compensation mechanism of the Iraq-Kuwait war as a prototype

Ukraine took the compensation mechanism of the Iraq-Kuwait war as a prototype

Deputy Minister of Justice Irina Mudra told the details of how they will block the assets of the Russian Federation because of the attack on Ukraine . In an interview with Korrespondent, she noted that Ukraine took the compensation mechanism of the Iraq-Kuwait war as a prototype.

– In their work, experts and members of relevant working groups examine the practice of considering complaints and claims for damages by international courts and compensation commissions. As a rule, this is the practice of the UN International Court of Justice, Investment Arbitration and the UN Compensation Commission, created by the UN Security Council after the seven-month occupation of Kuwait and the defeat by US troops in Iraq under the regime of Saddam Hussein in the Gulf War.

And the last example may turn out to be the most illustrative in resolving the issue of receiving compensation by Ukraine from the Russian Federation.

Therefore, our second working group, created by presidential decree, took as a prototype the compensation mechanism of the Iraqi-Kuwaiti war. And based on it, our Ukrainian-Russian compensation mechanism is being developed, – Mudra said.

At the same time, she noted that the Kuwaiti case would fit perfectly into our structure, but there is one “but”. The Kuwait mechanism was created by the UN Security Council, in which the Russian Federation, as a permanent representative, has the right of veto. Therefore, the Security Council is a non-working body in relation to Russia.

– If it is impossible to deprive Russia of the right of veto, then we must do something else. And, in principle, there is an option how to do it. The key idea of ​​our concept of an international mechanism provides for an international agreement on the establishment of a mechanism for compensating for the damage caused by Russian aggression. It is a treaty to which interested countries can join. In our understanding, first of all, these should be such strategic partners, on whose territory the lion's share of the frozen assets of the Russian Federation is located. These are countries such as the US, the UK, France, Germany, perhaps all the G7 countries, the EU countries,” she said.

The agreement will create a permanent commission to review claims or claims for damages. In addition, this treaty will provide for the obligations of the states parties to such an treaty to block, confiscate and transfer such Russian assets under their jurisdiction to a compensation fund. This will be a special fund of Russian assets. The agreement will provide for a simplified mechanism for the enforcement of the commission's decision if the Fund's funds are insufficient or the Fund will not function for some other reason.

International specialists were involved to assess the damage caused by Russia. The conclusions of only Ukrainian experts can be perceived as biased and biased.

Claims against Russia, which Ukraine will include in its concept, can be divided into several categories:

  • who had to leave Ukraine during the invasion of the Russian Federation;
  • a statement of serious bodily harm, death of an immediate family member;
  • individual claims under $100,000 for miscellaneous damages
  • individual claims over $100,000;
  • corporate claims or private legal entities and public sector enterprises;
  • applications submitted by the government of Ukraine and international organizations;
  • territorial communities.

The arrested assets of the Russian Federation abroad cannot be used for compensation, as they are covered by sovereign immunity. Appeal to the ECHR is complicated, given the denunciation by the Russian Federation of the convention on the protection of human rights and exclusion from the Council of Europe. The European Court of Human Rights will have jurisdiction to hear disputes over events that will only take place until September 16, 2022. Another way that business can go is investment arbitration.

– At first glance, it seems to be effective, given the previous Crimean cases of Ukrainian private investors. But although the first cases were launched in 2014, as of today, no decisions have yet been implemented, Mudra noted.

The Deputy Minister of Justice admitted that the current system of international law cannot yet adequately respond to the challenge when one country illegally occupies another.

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