In the latest episode of the "Prospects for Peace in Ukraine" miniseries of the Lawyering Peace podcast, produced by the global pro bono law firm Public International Law and Policy Group (PILPG), the discussion featured Ivan Horodyskyy, Vice President of the Ukrainian Bar Association (UBA) and Director of the Dnistro Center. This episode is dedicated to the critical issues of reparations for the damage caused by Russian aggression and the use of frozen Russian assets in the post-war reconstruction of Ukraine.

Ivan Horodyskyy emphasized the importance of the legal basis for Ukraine's right to reparations, citing the 1927 Chorzów Factory case, which enshrines the principle that a state is obligated to compensate for damages caused by its illegal actions. He also highlighted the significance of the United Nations General Assembly Resolution ES-11/5, adopted in November 2022, which recognizes Russia's responsibility for aggression against Ukraine and the need for reparations.

The conversation also covered the issue of frozen Russian assets, particularly those held in EU jurisdictions, such as Euroclear in Belgium. Horodyskyy noted that although these assets are currently frozen, their confiscation and use for Ukraine's reconstruction face significant legal and political challenges, including the principle of sovereign immunity.

He also discussed a mechanism introduced by the European Union that uses interest earned on frozen Russian assets to provide Ukraine with a $50 billion loan. This loan will be repaid through the revenues generated from these assets, avoiding direct confiscation of the principal amount.

The UBA Vice President warned that Russia may attempt to leverage the unfreezing of these assets as a bargaining chip in peace negotiations, potentially offering ceasefire agreements in exchange for access to its financial resources. He stressed that Ukraine must be cautious in such negotiations to avoid compromising its rights to full compensation.

In conclusion, Ivan Horodyskyy expressed support for the creation of a special international reparations fund, similar to the United Nations Compensation Commission for Kuwait, which would ensure transparent and fair use of confiscated assets for compensating Ukrainian citizens and businesses for the damage caused by the war.

Listen to the full episode here: