compensation - Transparency International Ukraine

Government Changes Rules for Submitting Claims to International Register of Damage

Андрій Швадчак — Mon, 12 Aug 2024 11:21:39 +0000

In April, Ukrainians were able to submit claims to get compensation for losses for damaged or destroyed housing in the Register of Damage Caused by the Aggression of the Russian Federation against Ukraine. A prerequisite for this was participation in the eRecovery program. But the specialized legislation contained a conflict—to receive compensation under eRecovery, the owners of the destroyed property needed to terminate the ownership; however, it was at the same time the requirement for submitting a claim with the international Register. Notably, due to the well-established information interaction between the registers, when submitting a claim, the relevant restrictions do not apply, but the inconsistency between the legislation persists. We drew the government’s attention to this problem and recommended that it be eliminated.

In late July, the government made changes that allowed the owners of destroyed or damaged real estate to choose a compensation mechanism (or both) without necessarily being tied to the other. In addition, citizens whose property is located in the temporarily occupied territories or in zones of active hostilities received the right to submit claims to the International Register of Damage.

However, despite the expanded opportunities, the inconsistency of provisions regarding destroyed housing remained. According to the updated procedure for submitting a claim, ownership rights and the submission of information on housing from the State Register of Real Property Rights or a document certifying a refusal to register ownership in the register remain mandatory. Relevant information is also requested when trying to submit a claim through the Diia Portal.

Nowadays, eRecovery is the only opportunity to obtain compensation. But the state may compensate the cost of the destroyed object, but not in full; so, to receive the remaining amount of compensation, a person can apply to the international Register of Damage. Therefore, we recommend amending the application procedure, which will provide for the non-extension of the requirements for registered ownership to the claims of Ukrainians whose housing has been destroyed and who have already received assistance from the state. This can be confirmed by information from the Register of Damaged and Destroyed Property.

It will soon be possible to submit claims to the International Register for other categories of losses, including those related to the death and disappearance of immediate relatives and forced internal displacement. Claim forms and rules for their submission have already been approved.

The material was prepared within the framework of the Digital Transformation Activity, funded by USAID and UK Dev.

The post Government Changes Rules for Submitting Claims to International Register of Damage first appeared on Transparency International Ukraine.

International Register of Damage: Addition to eRecovery or Alternative?

Андрій Швадчак — Fri, 31 May 2024 08:55:20 +0000

In April, Ukrainians were able to submit claims to receive compensation for losses for damaged or destroyed housing in the Register of Damage Caused by the Aggression of the Russian Federation against Ukraine. Currently, this is not a full-fledged alternative to eRecovery, but the opportunity to claim the part of compensation that is not covered by the state. But with the opening of the possibility of submitting claims for other categories of losses, the Register will become an independent and full-fledged mechanism for obtaining compensation.

However, before that, it is necessary to improve the specialized legislation because one of its requirements limits the possibility of applying to the Register for those who received compensation from the state for damaged property.

On April 2, Ukrainians were granted an opportunity to apply for compensation to the international Register of Damage Caused by the Aggression of the Russian Federation against Ukraine. So far, it extends only to damaged and destroyed property.

The Register of Damage is the first of the three components of the future international compensation mechanism for damages caused by Russia. It will collect, process, categorize, and record the claims of victims. But it will not directly consider claims for damages or decide how any payments or compensations will be distributed. However, the Register is not only a set of data and documents that certify the damage from the wrongful acts of Russia, but primarily an international organization operating within the institutional framework of the Council of Europe.

In March 2024, the Board of the Register (the body responsible for including applications on damages in it) and the Conference of Participants (the governing body of the Register) adopted and approved the key documents for the launch of the institution:

Rules Governing the Submission, Processing and Recording of Claims (hereinafter referred to as Claims Rules)
Categories of Claims Eligible for Recording.

These and other documents have shed light on the conditions and limitations for submitting claims to the Register of Damage, and how it is connected to the eRecovery program. At the same time, their analysis made it possible to identify inconsistencies in the specialized legislation that may limit those who received compensation for destroyed housing in applying to the Register.

Who will be able to submit a claim in the Register, and for which categories of damages?

As stipulated by the agreement on the establishment of the Register of Damage, the right to submit a claim will be granted to:

– individuals (both citizens of Ukraine and foreigners);

– legal entities (including non-residents);

– the state of Ukraine (represented by state or local authorities, enterprises, institutions and organizations under their management).

Each of these entities will be able to submit a claim or several claims for a certain category of damages.

For individuals, as many as 21 categories are provided for.

Notably, in its proposals, the Government of Ukraine suggested a broader classification of damage and loss categories than the one approved. In particular, the list does not include damage to mental health or damage and harm associated with the inability to receive social and administrative services.

The issue of extending the right to submit claims, in particular regarding violations of personal inviolability, to servicemen remains unclearly defined: whether all of them will receive it (as provided for in the government proposals) or only those mobilized, that is, not professional servicepeople (as noted by the executive director of the Register).

The business will also be entitled to file a claim for 12 categories of damages.

However, the categories depicted are not final, they may change and/or be clarified in the course of the Register’s activities.

Due to the significant number of categories, the Register will be filled in gradually. Since April 2, individuals–owners of damaged or destroyed housing have been the first to receive the right to submit a claim. Such a decision is logical because, according to the damage and needs assessment report developed in cooperation with the Government of Ukraine, the World Bank Group, the European Commission, and the United Nations, it is the housing infrastructure sector that has been affected the most during the full-scale invasion. Its losses are estimated at USD 56 billion. In addition, the vast majority of this category of persons have already undergone the procedure for submitting claims for compensation under the eRecovery program, which reduces the risk of technical and other difficulties in submitting claims to the Register of Losses.

Other categories are planned to be introduced soon: statements from persons most affected by the war (probably those who were injured, as well as victims of violence and torture) and statements related to damage or destruction of critical infrastructure objects.

Conditions for accepting applications, and the problem the owners of the destroyed property face

The criteria for admissibility of claims are defined by the Charter of the Register of Damage, as well as enshrined in the Rules Governing the Submission, Processing and Recording of Claims, which were developed by the Board of the Register of Damage and approved by the representatives of the countries participating in the Register of Damage.

Claims must be submitted in respect of losses or damages inflicted:

– starting on or from February 24, 2022;

– on the territory of Ukraine within its internationally recognized borders, including its territorial waters;

– by wrongful acts of Russia in Ukraine or against Ukraine.

The Government of Ukraine approved a separate procedure for submitting such claims, which clarified the conditions for their submission. It covers:

– registered ownership rights to a damaged/destroyed object in the State Register of Real Rights to Immovable Property;

– mandatory availability of a commission inspection certificate for damaged and destroyed property;

– restrictions on the submission of a claim by a person who is sanctioned in accordance with the Law of Ukraine on Sanctions, or who has a criminal record for committing criminal offenses provided for in Section I Crimes against the Foundations of National Security of Ukraine of the Special Part of the Criminal Code of Ukraine.

However, the mandatory availability of registered ownership rights to the destroyed object can become an obstacle for those who have already applied for compensation within the framework of the eRecovery program. Ukrainian legislation requires the termination of ownership rights to the destroyed object until compensation is received within the framework of the eRecovery program. But the state might compensate the cost of the destroyed object not in full, and then, due to the termination of ownership rights to housing, the person will no longer be able to count on their claim being accepted in the Register of Damage to receive the rest of the compensation.

As part of the electronic interaction between the Register of Damaged and Destroyed Property and the Register of Damage, the latter may receive information about the termination of ownership rights to the destroyed housing by citizens who have received compensation under the eRecovery program. Therefore, it is advisable to amend the Procedure for submitting claims to the Register of Damage, which will provide for the non-extension of requirements regarding registered ownership rights to the claims of Ukrainians who have already received assistance from the state.

Register of Damage and eRecovery

One of the key issues when submitting a claim will be determining the amount of compensation for damaged/destroyed property. This is especially relevant for those Ukrainians who have received or will seek assistance within the framework of the eRecovery program.

In accordance with the approved claim form for damage or destruction of residential immovable property, the claimant must indicate the estimated amount of payment, as well as information on the determined and paid compensation by the state. In addition, the Diia portal states that the claimant, when filling in the form, must indicate the desired amount of compensation that they want to receive in addition to the payment under the eRecovery program.

In addition, a prerequisite for submitting a claim to the Register of Damage is the availability of a commission inspection certificate regarding damaged and destroyed property. Such a certificate can only be received after submitting a notice of such property through the eRecovery service.

Therefore, today, the submission of a claim to the Register of Damage for damaged or destroyed housing is directly related to the eRecovery program and, in fact, is not an alternative, but an opportunity to receive part of the compensation for losses that are not compensated by the state.

However, it is planned that later the service will be available for those who are not able to use the eRecovery program, and an inspection certificate could be obtained from a commission under the local authority.

Who checks and enters the claim in the Register?

The Secretariat of the Register will consider the claims received for compliance with the eligibility criteria and prepare recommendations to the Board on the inclusion of claims in the Register.

The Board of the Register has the final authority in determining the eligibility of claims for inclusion in the Register. Based on the consideration of claims, the Board may:

– record the claim for submission;

– not record a claim stating which admissibility criteria were not met and whether such rejections are “with prejudice” (preventing resubmission of the same claim) or such rejections are “without prejudice” (allowing resubmission with additional information, evidence, or with deficiencies rectified);

– return the claim for further processing by the Secretariat with instructions, which may include a request for rectifications, clarifications, additional information, or evidence from the claimants.

What’s next?

The Register of Damage is only the first of three components of the future international compensation mechanism for damages caused by Russia. It has no jurisdictional authority to decide on the claims made, including determining liability and awarding any payment or compensation.

At least 6–8 million claims are expected to be submitted to the Register, and the amount of compensation for them will be enormous. But according to the forecast of the Executive Director of the Register, compensation at the expense of the aggressor should not be expected in 2024. First of all, due to the lack of progress in the creation and filling of the compensation fund.

It is obvious that without the aggressor’s consent to pay reparations, the main potential source of replenishment of the compensation fund remains the frozen assets of Russia, and the shift in the issue of transferring income from these assets to Ukraine gives grounds for cautious optimism.

Before that, we recommend that the government improve the Procedure for submitting claims to the Register of Damage and determine in it that the condition of registered ownership rights to the destroyed real estate object in order to submit a claim does not apply if a person has received compensation for such property under the eRecovery program.

As far as we know, a functionality that will help solve this problem is being developed. However, the regulation is planned to be updated simultaneously with its launch.

The material was prepared within the framework of the USAID/UK aid TAPAS Project/Transparency and Accountability in Public Administration and Services.

The post International Register of Damage: Addition to eRecovery or Alternative? first appeared on Transparency International Ukraine.

International Register of Damage: How to Submit a Claim

Андрій Швадчак — Fri, 19 Apr 2024 14:32:00 +0000

Last May, the Register of Damage Caused by the Aggression of the Russian Federation was established under the auspices of the Council of Europe. Despite optimistic forecasts, it took some time to form the Register’s governing bodies and adopt the rules and regulations necessary for its operation.

On April 2, the Register of Damage opened for the submission of claims under the first category—damaged or destroyed residential property of individuals.

The International Register of Damage is the first component of the future international compensation mechanism for damages caused by the aggression of the Russian Federation. It will collect, process, and record claims from victims. However, the Register will not directly consider claims for damages on the merits, make an assessment of losses, or decide on the appointment of any payments or compensations. This will be the responsibility of an ad hoc claims review commission, which is in the process of being established. Later, legal entities and the state of Ukraine will also be able to submit a claim for damage in the Register, in addition to individuals, for more than 40 different categories of damage.

In the meantime, we provide an explanation for Ukrainians on how to do it.

Damage for which you can submit a claim now

Unlike the state compensation program eRecovery, Ukrainians will later be able to submit a claim to the International Register of Damage not only for destroyed or damaged property. For individuals, there are about 20 more categories of damage, including bodily injury, torture, sexual violence, forced and involuntary displacement.

At this stage, you can submit a claim to receive compensation for destroyed or damaged residential property: a private house, an apartment, a country or garden house, or other residential premises.

How do I submit a claim to the Register?

An adult citizen of Ukraine who is the owner of damaged or destroyed housing can submit a claim. The co-owners of the immovable property (e.g., spouses) must submit separate claims in respect to their shares. Subsequently, the opportunity to submit a claim will also be provided to representatives of the owners, in particular regarding minors.

Each co-owner can specify the desired amount of compensation. However, it should not be deliberately unreasonable or inflated. You should bear it in mind that you will not necessarily receive the desired compensation. The exact amount will be set by the claims review commission, which will be established later.

Currently, the claim can only be submitted through the Diia mobile app.

Subsequently, this could also be done through the Diia website. For those who do not have the opportunity to use it, a support system will be created.

The claim is to be submitted for each damaged/destroyed object separately. In the future, claimants will be able to submit more than one claim, in particular for different categories of damage.

NB! You can submit a claim for compensation for damages even if you have already received compensation under the eRecovery program. But then the compensation will be paid, considering what the state has already provided.

When submitting a claim, you must provide information about:

– the identity of the claimant;

– damaged/destroyed object, including ownership rights to it;

– the submitted claim regarding damage or destruction of property (this can be done using the “Report Damaged Property” services in Diia);

– circumstances of the event that caused damage/destruction to the object;

– description and assessment of the damage or destruction, as well as information on the estimated amount of the compensation claim.

Some information, in particular about the circumstances of the damage/destruction of housing, will be automatically pulled from the Register of Damaged and Destroyed Property. But the claimant will be able to add more data, for example, on the assessment of losses. You can read more about the claim form here.

The following should be added to the claim:

– a certificate of property inspection by a commission (if the inspection was carried out earlier, it will automatically be pulled up in the application; if not, it can be obtained by contacting the local authorities or by applying for compensation within the framework of eRecovery);

– property valuation reports.

NB! At the first stage, a claim for damage or destruction of residential real estate can be submitted by those claimants who have a commission inspection certificate. In a few weeks, property owners who have not applied for assistance within eRecovery or cannot obtain a commission inspection report, in particular because their property is located in the temporarily occupied territories, will be able to submit such a claim.

We also recommend providing any available materials confirming, in particular, the fact and amount of damage caused and the cost of housing and repair costs: documents, records, statements, photographs, etc.

There is no submission fee.

The person receives a notification in Diia on submitting a claim to the Register of Damage, which contains the unique numbers of the claimant and the claim.

NB! After signing the claim, the information contained in it cannot be changed, but the claimant can provide additional materials regarding the damaged or destroyed object or withdraw the already-submitted claim and submit a new one.

What are the conditions for accepting claims for consideration?

The criteria for the eligibility of claims are determined by the Charter of the Register of Damage, as well as enshrined in the Rules Governing the Submission, Processing and Recording of Claims.

Claims must be submitted in respect of losses or damages inflicted:

– starting on or from February 24, 2022;

– on the territory of Ukraine within its internationally recognized borders, including its territorial waters;

– by wrongful acts of Russia in Ukraine or against Ukraine.

Recently, the government of Ukraine approved the Procedure for Submitting Claims to the Register of Damage. This document clarifies the conditions for submitting claims:

– registered ownership rights to a damaged/destroyed object in the State Register of Real Rights to Immovable Property;

– mandatory availability of a commission inspection certificate for damaged and destroyed property, which is carried out by a commission under a local self-government body*;

*temporary condition

This Procedure will be supplemented when the remaining categories are launched, or new technical capabilities are introduced.

What’s next?

Claims will be processed in two stages.

At the first stage, they will be checked by the Secretariat of the Register for compliance with formal and technical requirements. It will also preliminarily assess whether the claims meet the eligibility criteria.

After the verification by the Secretariat, the claim will be considered by the Board of the Register. It may decide whether to record the claim in the Register or return it for revision. Claimants will be notified of the decision through Diia.

NB! There is no established deadline for verification and consideration of claims yet.

The Board or the Secretariat of the Register may also request that the applicants provide rectifications, clarifications on the claims submitted, or additional information or evidence. Interaction with claimants will take place only in electronic form.

When can I obtain the compensation?

The Register does not consider claims on the merits, does not award or pay compensation to claimants. This will fall within the mandate of the ad hoc commission, which is already in the process of being established by partner countries. In addition, it is necessary to form a fund from which compensation will be paid.

In the meantime, you should not expect to receive compensation soon, which is confirmed, in particular, by the forecast of the Executive Director of the Register of Damage. However, the shift in the issue of transferring income from frozen assets of the Russian Federation to Ukraine, which is likely to become the basis of the compensation fund, gives grounds for cautious optimism.

What other applications could be submitted in the near future?

According to the Executive Director of the Register, other categories are soon planned to be opened: statements from persons most affected by the war (those injured, victims of violence and torture, forcibly displaced persons), and statements related to damage or destruction of critical infrastructure.

In addition, representatives and foreigners will soon have the possibility to submit claims.

The material was prepared within the framework of the USAID/UK aid TAPAS Project/Transparency and Accountability in Public Administration and Services.

The post International Register of Damage: How to Submit a Claim first appeared on Transparency International Ukraine.

Money or Housing Certificate: Compensation for Property Destroyed by War

Андрій Швадчак — Thu, 10 Aug 2023 14:17:29 +0000

Housing certificate

A housing certificate is a document confirming the state’s guarantees to provide financing for the purchase of housing in the amount specified therein.

If the commission has decided to compensate through a housing certificate, it must send it to the recipient through Diia, by e-mail, or in paper form by mail, if the application was submitted in that way.

NB! A hard copy of the housing certificate can also be obtained from an administrative service center, a social protection authority, or a notary.

What you need to check in the certificate

Once you have received your housing certificate, it is important to ensure it contains all the necessary information about:

the recipient of compensation;
the presence/absence of a priority right to receive compensation;
the amount of compensation (it must match the amount specified in the decision of the commission);
the registration number of the housing certificate in the Register of Damaged and Destroyed Property;
the decision of the commission and the executive body of the local self-government body/military administration, on the basis of which it was issued;
the destroyed object of immovable property, for which compensation is provided;
a generated QR code for fast recognition by scanning devices.

How to use the certificate: choosing housing

The housing certificate may only be used by the owner or their heir for a period of 5 years from the date of issue. It cannot be sold or donated to third parties.

With the certificate, you can buy an apartment or a house in both the primary and secondary markets. You can also invest in housing that will be built in the future.

NB! Funds can also be used to purchase a land plot on which a private house that you want to buy is located.

With the certificate, you can purchase housing in any locality of the country, except for the temporarily occupied territory or territorial communities located in the area of military (combat) operations. It is not allowed to purchase housing from a construction customer in respect of which a bankruptcy case has been initiated, which is in the process of dissolution, or has no right to perform construction works at the relevant object.

NB! One or more housing certificates belonging to one or more owners can be used to purchase housing.

How to use the certificate: apply for funding

When the recipient of compensation has chosen housing, they must submit an application for financing the purchase of housing through a notary, administrative service center, social protection authorities, or Diia to JSC Ukrposhta, which is the contractor of the compensation program.

If the cost of the housing chosen for purchase is lower than the amount of money indicated in the housing certificate, information on the difference will be entered in the Register of Damaged and Destroyed Property. This amount will be paid later at the expense of funds received from russia as compensation for losses caused by the aggression against Ukraine.

If the cost of the housing exceeds the amount specified in the certificate, the recipient must pay the difference themselves. The taxes and mandatory payments established by law are to be paid independently, for example, for notarial deeds, administrative fee for state registration of property rights, etc.

The application for financing shall indicate:

information about the housing chosen for purchase (address, area, number of rooms);
the price of such housing previously agreed upon with the owner/customer of the construction;
information about the housing certificate (number and date, amount of compensation);
information regarding the means of communication with the compensation recipient (phone number, postal address, e-mail address).

Applications for financing the purchase of housing are considered in the order of their receipt, taking into account the priority right to receive compensation. The term for consideration of the application is no more than 10 working days. Compensation is carried out within the limits of available funding, so, in the absence of funds, the period for considering applications for financing the purchase of housing is automatically stopped and resumed after the program provider receives the funds.

Funding agreed — what’s next?

Confirmation of financing the purchase of housing using a housing certificate is valid for 30 calendar days from the date of the relevant decision. During this time, you need to conclude and notarize an agreement on the purchase of housing using a housing certificate. If this is not done within the deadline, the application for funding will be considered withdrawn.

NB! Simultaneously with the certification of the agreement on the purchase of housing, the notary imposes a prohibition on the alienation of the acquired property for a period of five years.

Along with the certification of the agreement, the notary shall enter the details of the signed agreement, the bank details of the seller(s) for payment, the cost of housing under the agreement, the amount for payment under the housing certificate, the full name of the seller of the property object in the Register of Damaged and Destroyed Property. The program provider transfers funds to the seller’s account within 5 working days from the date of entering the data on the agreement into the Register.

From the date of crediting funds to the seller’s account, the housing certificate is considered used; the corresponding information is entered in the Register of Damaged and Destroyed Property.

This publication was made possible by the support of the American people through the United States Agency for International Development (USAID) within the SACCI Project. The content of this publication is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of USAID or the United States Government.

One or more housing certificates belonging to one or more owners can be used to purchase housing.

The post Money or Housing Certificate: Compensation for Property Destroyed by War first appeared on Transparency International Ukraine.

International Register of Damage: One Step Closer to Reparations

Андрій Швадчак — Tue, 27 Jun 2023 13:34:57 +0000

On May 17, at the summit of the heads of state and government of the Council of Europe, the establishment of a Register of Damage caused by the aggression of the russian federation against Ukraine was announced. The agreement was signed by more than 40 EU member states, as well as the United States, Japan, and Canada.

The Register was introduced to record evidence and information about claims of individuals and legal entities, as well as the Ukrainian Government, regarding losses or damage that russia caused by the war.

In fact, it should become the first stage of a comprehensive international mechanism for providing compensation to victims of russian aggression. Let’s find out how the Register will work and why this is an important step towards russia paying for its war crimes.

What is this Register?

Since the beginning of russia’s full-scale invasion of Ukraine, the issue of creating a special mechanism to compensate for losses arising from the illegal actions of the aggressor state has been discussed at the international level. A similar mechanism has already been used, for example, after the Iraq-Kuwait conflict in 1990 and the war between Ethiopia and Eritrea in 1998–2000. However, it took more than a year to make a decision and authorize the creation of the Register itself.

The Register of Damage is not only a set of data and documents that testify to the damage from illegal actions of russia. First of all, it is an international organization, a platform for intergovernmental cooperation, operating within the institutional framework of the Council of Europe.

To date, 44 states have supported the agreement on the Register of Damage or promised support after the completion of internal procedures. Others will be able to do so in the future.

The agreement provides that the Register is created for 3 years, with the possibility of further extension of its operation.

It will have the status of a legal entity, which will be physically located in The Hague in the Netherlands. To simplify the submission of applications by affected persons, it will also have a representative office in Ukraine.

The Register will be managed by:

The Executive Director and the Secretariat to ensure its maintenance and operation;
The Board to verify the collected evidence and include applications in the Register;
The Conference of Representatives of the Participating Countries to appoint the Executive Director and approve the procedural documents for the operation of the Register.

It is important that Ukraine will play a key role in the formation of the Register’s management bodies. After all, only Ukraine will propose the candidacy of the Executive Director, as well as one of the candidates for the Board members (7 of them will be elected).

What will the Register of Damage do?

The direct functions of the Register will include:

receiving and processing information from the reimbursement applications and attached evidence;
classifying and systematizing the submitted applications;
assessing whether they meet the requirements for inclusion in the Register;
registering applications for further consideration and decision-making.

Importantly, the Register will not deal directly with claims for damage reimbursement and, in particular, decide on the allocation of any payments or compensations. A special Commission will be responsible for this, which will be created later.

It will be possible to submit an application to the Register for compensation for losses or damage caused:

on February 24, 2022, or later;
on the territory of Ukraine within its internationally recognized borders;
by illegal actions of russia in or against Ukraine.

The affected legal entities and citizens, as well as the Ukrainian government, represented by its state or local authorities and economic entities under their management, will be able to submit such an application and evidence to it.

It has not yet been decided how, when, and in what form it will be possible to submit an application. The appropriate procedure shall be approved by the management bodies of the Register when they are formed. The Ministry of Justice noted that the priority would be the use of a digital platform for filing applications and evidence, their processing and evaluation.

In addition, it is expected that the international Register of Damage will include information not only on destroyed or damaged property, but also evidence of other types of damage that will be compensable. This includes damage to individuals associated with bodily injuries, the death of a close family member, for crimes of a sexual nature, compensation for damages to forcibly displaced persons and other categories of damage.

The Register is created. What’s next?

The primary task now is to establish the management bodies of the Register. After all, only they are authorized to develop and approve the rules and procedures for submitting applications and the work of the Register itself. For this purpose, a Conference of Representatives of the Participating Countries should be convened, which will appoint the Executive Director and members of the Board.

In parallel, we need to prepare for the actual launch. According to the Deputy Minister of Justice of Ukraine, employees are already being recruited and IT solutions to launch the digital platform of the Register are being developed, as well as its security and protection systems. The government expects that the Register will start functioning in August this year.

The launch of the Register, including its digital platform with all the data on applications and evidence recorded in it, should be the first component of the future international compensation mechanism. This is enshrined in the Charter of the Register. Therefore, it is expected that the next stage will be the conclusion of an international agreement on the establishment of a special commission, authorized to consider applications submitted to the Register and determine the amount of compensation.

What does the Register mean for affected Ukrainians?

In the short term, it is unlikely to seriously impact Ukrainians and businesses affected by the full-scale russian invasion. The already mentioned compensation mechanism is currently the subject of political and legal discussions. Even after its creation, the process of considering applications and paying compensation can be delayed for years, so one should not expect to receive compensation quickly.

But the launch of such a register once again emphasizes the importance of properly recording the losses and collecting evidence to confirm them. Because the potential opportunity to receive compensation will depend on the applicants themselves.

Since the end of last August, the Register of Damaged and Destroyed Property has been operating in Ukraine, with more than 340,000 information messages about damaged property already submitted. Obviously, this information should become the basis for the formation of the Register of Damage.

Therefore, now it is important for victims to properly record their losses, collect evidence to confirm them, and make a notification to the Register of Damaged and Destroyed Property. This can be done through Diia.

What evidence will be required to confirm losses will become clear after the launch of the Register. Therefore, now it is necessary to collect all possible photo and video materials, settlement documents (for example, receipts for construction goods, service acceptance certificates), reports on property valuation, expert opinions, acts of commission examination, acts of the State Emergency Service, court decisions, etc.

A separate issue is how compensation for damages from the aggressor through the international mechanism will be consistent with the existing mechanisms of compensation from the state.

Those who will participate in the eRecovery program should not worry. Such payment is not compensation for damages within the meaning of civil law, and will not prevent receiving compensation from the aggressor in the future.

The opposite situation is for those citizens who want to receive compensation for destroyed housing as a result of military aggression. In accordance with the requirements of Law No. 2923-IX, simultaneously with the provision of monetary compensation, the recipient will be obliged to conclude an agreement on the assignment to the state of the right of claim against russia for damages for the destroyed real estate object in the amount of the compensation received. Therefore, agreeing to payment from the state, one should not expect full compensation for damages from the aggressor.

A lot of work ahead

The conclusion of an agreement on the creation of a Register of Damage caused by the aggression of russia against Ukraine is undoubtedly a significant and fundamental step in the process of bringing the aggressor to justice and paying reparations. After all, as a result of the work of the Ministry of Justice, political and diplomatic agreements were implemented in a real international treaty that imposed obligations on the participating countries to assist in recording the losses caused by russia, and more importantly, to develop an international compensation mechanism in cooperation with Ukraine.

At the same time, the main challenges regarding the introduction of such a mechanism are still ahead.

The resolution of the Committee of Ministers of the Council of Europe only indicates the possibility of creating separate tools to implement the compensation mechanism (the Commission for the consideration of applications or the Compensation Fund). This confirms that today, there is no single agreed approach to the model of such a mechanism, and it is necessary to continue negotiations between Ukraine and its partners to reach a compromise on this issue.

First of all, this concerns the sources of filling the compensation fund. More than USD 300 bln of reserves of the central bank of russia, as well as private assets of russian oligarchs, which are estimated at USD 97 bln, continue to remain seized or frozen by Ukraine’s allies since last year. However, there are no special changes in the procedure for the confiscation of russian funds and assets in favor of Ukraine yet, and there are many reasons for this. But the accession of a significant number of European states and all G7 member states to the agreement on the establishment of the Register of Damage may indicate a convincing and clear position of the global community on the issue of seizing russian assets. It can also be an impetus to solve these complex issues.

The post International Register of Damage: One Step Closer to Reparations first appeared on Transparency International Ukraine.