RUSSIA-UKRAINE WAR

Ukraine wants frozen Russian assets used to compensate $411 billion damage

This is only in the previously controlled territories that have already been liberated.

In Summary
  • According to Ukrainian authorities, the damage caused by Russia is estimated to be about $411 billion (Sh62.69 trillion), and this is only in areas that were previously occupied and have been liberated.
  • Prime Minister Denys Shmyhal told journalists from 10 African countries in Kyiv that the figure could double if the regions currently occupied by Russian forces are included.
UKraine Prime Minister Denys Shmyhal
UKraine Prime Minister Denys Shmyhal
Image: MFA Ukraine/Olexii Nazaruk

The Ukrainian government wants frozen Russian assets across the world used to compensate for the infrastructural damage caused by the full-scale invasion.

According to Ukrainian authorities, the damage caused by Russia is estimated to be about $411 billion (Sh62.69 trillion), and this is only in areas that were previously occupied and have been liberated.

Prime Minister Denys Shmyhal told journalists from 10 African countries in Kyiv that the figure could double if the regions currently occupied by Russian forces are included.

“Overall, the losses inflicted by Russia that have already been registered by the World Bank as an international independent expert go to $411 billion of losses which have to be compensated to rebuild our economy," he said.

"This is only in the controlled territories that have already been liberated. We cannot as of this moment calculate what Russia has destroyed in the occupied territories. I expect that the figure of $411 billion would double.” 

He insisted that Russia must pay for the damage it has caused and the pain of losses Ukraine has had to bear.

The PM noted that without the compensation, Ukraine will not be able to rebuild.

“Naturally we do hope for the confiscation of frozen Russian assets across many countries in the world. Russia as an aggressor state ought to pay for the losses and destruction it has inflicted and the economic losses we have to bear. This is a very important issue without which, we cannot rebuild," Shmyhal said.

“We did not calculate in human lives lost or economy as such but it should be a big resource to start and accelerate rebuilding Ukraine as we are the victims of the unprovoked aggression on the part of Russia.” 

Ukraine estimates that frozen Russian assets in sovereign and private could amount to at least $300 billion (Sh45.77 trillion).

They, however, note that this is only what has been made public by some countries because not all countries have disclosed how much worth of assets they have frozen.

According to the Ukrainian Prime Minister, there needs to be a system in place that will ensure this compensation is guaranteed.

“What is necessary to do is we need to ascertain that an international compensatory mechanism is put into practice drawing on national and international legislations including countries who have frozen assets.”

He said the compensatory mechanism must include three components; the international registry of losses and damages incurred by Russia to Ukraine–which already exists, the international compensatory commission that will include representatives of countries who will confiscate Russian assets and will make decisions on what renovation projects should these funds be directed to, and the international compensatory fund to accumulate all confiscated Russian assets.

“This will be the fund where all funds go to the registry which gives the losses and damages and unbiased commission which takes impartial decisions on how to use Russian funds,” PM Shmyhal said.

"We ask all our partners to support this instrument and its legislation implementation so that we can use it successfully after the war is over.” 

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