Reparations, the Hague and economic intelligence: when and how will russia pay for the damage?

Maria Smyk

Now russian have lost the chance to leave russia. And the entire country has become even poorer and even more miserable — sanctions are being imposed. But what about compensation for the damages to Ukraine? Rubryka explains when, how, with what, and under what conditions russia will pay for what they did.

What is the problem?

Shut up and take my money — unfortunately, it will not be like that

A full-scale war has been going on for the second month. In general, the war lasts eight years. And until it is over, it is impossible to calculate the cost of the harm russia has brought us. As of March 28, the estimated amount of the losses reached the mark of 564,9 billion dollars. And it is constantly growing because the shooting continues. The exact amount will appear when the war ends.

Ukraine seeks the payment of reparations — compensation for the amount necessary to renovate everything that has been destroyed or damaged by the aggressor.

But there are two problems. First, russia is unlikely to want to do it voluntarily, even in case of defeat, rather than through a peace agreement. Second, the payment of reparations is a long process. Especially when it comes to a country that is already asphyxiated by the consequences of numerous sanctions.

For example, Germany made the last payment for reparations after World War I on October 4, 2010.

Some politicians, including President Zelenskyy, said that russia would also pay contributions to Ukraine.

It is also a kind of post-war payment received by the winning country. While reparation is the compensation of losses that the country has suffered from war, then the contribution is an outdated term, which was prohibited by international law in the XXI century.

Previously, the contributions could be obtained in two cases: as a reimbursement from the country-aggressor of the funds spent on war, or as a payment for the possibility of relatively nice living in the territories, which were occupied by another country.

What is the solution?

Economic intelligence, Court in the Hague and all their possibilities

On March 16, the UN International Criminal Court in the Hague obliged russia to stop the invasion of Ukraine. This is an interim decision in the case related to genocide against the Ukrainian people. And as we see it did not stop the war. In russia they said that they would not implement this decision, because they have a special operation, denazification and other invented cases on our territory.

The question arises: what is the value of the Court in the Hague then? However, the value is great, as far as other UN member states will rely on the court decisions. Thanks to this decision, they will be looking for additional ways to help us.

"Most likely, the states that blocked the assets of russia will sell them and transfer all the received funds to Ukraine for reconstruction.

It is obvious that if the amount is not enough, the only option will be to force the russian federation to sign the relevant agreements, which may provide for different options for compensation of losses caused. This can be a free supply of fuel and lube, wood, electricity, etc.," says Yevhen Vorobiov, lawyer of the Public Organization Platform for Human Rights.

Regarding the blocked assets of the russian federation, the reserves of the Central Bank of russia which are located abroad have already been arrested. And Ukraine has already reserved 300 billion dollars for it. The rest of the funds will be claimed, for example, by foreign carriers whose aircraft are nationalized by russia after the actual closure of the air space for it.

Also on February 26, our foreign partners announced the creation of the REPO working group. It is already engaged in economic intelligence and is looking for money and property of russian companies and private individuals, which are kept outside the aggressor country.

Thanks to the work of this group, yachts, and estates of russian oligarchs for hundreds of millions of dollars have already been arrested. And this is the money we can count on.

How does it work?

Or what can the court in the Hague do?

The UN Court in the Hague is one of the most authoritative international organizations. Its decisions are binding for implementation. russia's insubordination has already led to the freeze of foreign assets and the increased sanctions, which will continue.

"Every UN member is obliged to comply with the International Court of Justice's decision in any case in which it is a party. This court, according to its competence, can determine the size of so-called reparations.

However, there are nuances in performance. Part 2 of Art. 94 of the UN Statute says that if a party fails to fulfill the obligation imposed on it by the Court's decision, the other party may apply to the Security Council. It may provide recommendations or bring decisions to take measures to enforce the decision.

Thus, the UN Security Council is essentially a body that decides the issue of enforcement of the International Court of Justice's decision…

There is a number of instruments of the Security Council. It may oblige the participating states to transfer russian blocked/arrested funds to Ukraine, but may also plan a military option that would force the russian federation to stop the war, sign appropriate capitulation agreements and compensate for the losses that are not covered," Yevhen Vorobiov explains.

The military option is the last and most radical. But will other countries agree to it? This question still has no answer.

There is also another problem. russia is still a member of the Security Council and has the right to veto all its decisions. Nevertheless, the countries participating in the dispute may deprive russia of the right to vote in the consideration of this issue. But this mechanism is not finally settled.

More useful solutions!

And all of them depend on us

Although the war has not ended yet, both now and after the victory our economy will need help. International funds for the reconstruction of Ukraine have already been established, and support from partner countries has already been agreed upon. But it will not work without the active participation of the Ukrainians. So what should we do?

• Try not to spend less than you spent in a peaceful life, keep buying coffee to go, get a manicure and live not with buckwheat only. If you can, spend your money.
• Tell your foreign friends and colleagues about Ukraine and, most importantly, how we can be supported.
• If you are an entrepreneur, pay taxes on time if possible. Now it is allowed not to do it. But this money does not go into the black hole but into the reconstruction of our homes.

Take care of yourself! And preserve the economy of Ukraine.