Lords: Russia paying compensation to Ukrainians highly unlikely

Lords: Russia paying compensation to Ukrainians highly unlikely

A House of Lords committee has backed plans for an international commission to assess compensation claims arising from Russia’s invasion of Ukraine, while warning that the scheme’s effectiveness could be undermined by the lack of a mechanism to pay awards.

The International Agreements Committee has published a report on the Convention establishing an International Claims Commission for Ukraine, which would review and determine claims for damage, loss and injury caused by Russia’s actions.

The committee said it supported the convention’s objectives and recognised its legal and political significance as part of the international response to Russia’s invasion. However, it highlighted concerns over the commission’s scope and practical impact.

Among the issues raised was the convention’s decision to limit claims to losses suffered on or after 24 February 2022, excluding damage arising from Russia’s actions in Ukraine between 2014 and 2022.

Peers also noted that while the convention establishes the claims commission, it does not create a compensation fund to pay successful claims. The report said there was no international consensus on how such a fund would be financed if Russia refused to participate.

Lord Johnson, chair of the committee, said: “We support the underlying rationale for the Convention and recognise its significance as part of the broader accountability architecture and international response to Russia’s aggression against Ukraine. By creating the Claims Commission, the Convention establishes a mechanism capable of moving beyond the registration of claims and towards formal determinations of compensation. This is to be welcomed.

“However, we are concerned by the Convention’s current temporal limitation, the current absence of a mechanism for payment of awards, and the lack of consensus within the international community as to the source of compensation funds. While the Claims Commission has intrinsic value as a mechanism for adjudicating awards and preserving a historic record of damage, its impact will be limited if compensation cannot ultimately be paid. In the absence of Russia’s participation, the source of these funds is wholly unclear. These concerns do not negate the case for ratification, but they do raise important issues.

“We look forward to debating this important Convention in the House of Lords.”

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