Estonia Approves Law to Use Frozen Russian Funds for Benefit of Ukraine

Today, the Estonian parliament passed a law allowing the use of assets of Russian individuals frozen under international sanctions to compensate for the damage caused to Ukraine by the Russian war, Postimees reports.

The law was voted in favour by 65 MPs, with only three against. 

To start the procedure of using property in Estonia, a request must be submitted to Estonia, and the terms of using the property as an advance payment for compensation and assignment of the right of claim must be agreed with the requesting country.

According to Hendrik Johannes Terras, Chairman of the Constitutional Committee, the creation of legislative regulation of the use of frozen assets is a complex task that is currently being addressed by several allied countries and international organisations, and Estonia is the first to introduce it. 

"Russia is an aggressor country, and compensation for the damage caused by the war cannot be borne by Ukraine and its allies. Russia is responsible for causing the damage, and it should also bear this responsibility for compensation," he said.

According to Terrace, assets that have already been frozen under international sanctions and which their owners cannot use or dispose of in any way can be used to ensure accountability for compensation for the damage caused by the aggressive war in Ukraine.

"With the law adopted today, Estonia proposes a mechanism that provides for the liability of those people and companies that are directly involved in or facilitate the aggression," he said, adding that the Constitutional Commission has gone more than halfway to creating the relevant legal act with various parties, including foreign experts, which was very carefully considered during the year.