Recommendation for a Council Decision authorising the European Commission to participate, on behalf of the European Union, in negotiations on the international agreement establishing the International Claims Commission for Ukraine.

Justice

Financial and technical assistance to third countries

The International Claims Commission would work as a fact-finding body and review, assess and decide eligible claims recorded in the Register and determine the amount of compensation due in each case.

The setting up of the International Claims Commission.

There are two main requirements that can be expected when implementing this initiative. The first one, which is short term, is to formally receive the mandate to participate for the EU in the negotiation process on the setting up of the International Claims Commission. The second one, which is long term, could be assessed only once the International Claims Commission is fully operational. Once this will be case, the efficiency of this instrument could be evaluated against its ability to review, assess and decide eligible claims and determine the amount of compensation due in each case.

Reasons for action at EU level (ex-ante)

The Union reiterated on various occasions its commitment to ensure that the Russian Federation bears the legal consequences of its internationally wrongful acts, including the obligation to make reparation for any damage caused by such acts. This commitment notably echoes the call made by the United National General Assembly 2022 resolution entitled ‘Furtherance of remedy and reparation for aggression against Ukraine’, which recognised the need for the establishment of an international mechanism for reparation for damage, loss or injury arising from Russia’s war of aggression against Ukraine. Answering to this call, on 12 May 2023, the Committee of Ministers of the Council of Europe adopted the Resolution establishing the Enlarged Partial Agreement on the Register of Damage Caused by the Aggression of the Russian Federation against Ukraine. States adopted a stepwise approach, choosing to establish the Register first, to be followed by the other elements of the compensation mechanism, namely a claims commission and a compensation fund. This approach was reflected in the Register’s Statute, where it is acknowledged that the Register, including its digital platform with all data about claims and evidence recorded therein, is meant as the first component of the compensation mechanism to be established by a separate international instrument in co-operation with Ukraine and relevant international organisations and bodies. After initially joining the Register of Damage as a founding Associate Member on 11 May 2023 by means of a Commission Decision, the Union, further to a Council Decision adopted on 22 July 2024, changed its status to a fully-fledged Participant. The Union therefore participates within its own role in the Register, together with and in addition to the Member States (except for Hungary). Such participation allows the Union to stand by its commitment to support Ukraine and contribute to the restoration of a rule-based international legal order. At the same time, it allows the Commission to better coordinate its actions related to reparations with the Member States, thus ensuring that the Union can speak with one voice. The possibility for the Commission to participate in the negotiations of the Claims Commission, and ultimately in the Claims Commission itself once established, is thus the natural continuation and development of the existing status quo.

Expected generated EU added value (ex-post)

By participating in the setting up of the International Claims Commission, the EU would contribute to ensure that the Russian Federation bears the legal consequences of its wrongful acts and that, in such endeavour, the EU can speak with one voice. Whenever necessary, the Commission could ensure coordination with and among Member States in the different phases of the establishment and functioning of the Claims Commission, thus contributing to the efficient management of this new body.

The main lessons learned in the past draw from previous similar instruments. The UN Compensation Commission (UNCC) is the most relevant precedent, which can give some insights on the design and costs of the Claims Commission for Ukraine. It existed for 31 years (1991 to 2022) but its adjudicative activities lasted 12 years. Due to the groundwork already done by the Register and the technological developments in the last decades, the Claims Commission could have a shorter lifespan than the UNCC, currently estimated at 10 years. The Union did not however participate in the UNCC.

The Union’s unwavering support to Ukraine reflects a shared commitment to democratic principles and the safeguarding of the rule-based international order and peace in Europe. The present proposal is therefore consistent with other Union policies that aim to support Ukraine and safeguard the international order and peace in Europe, notably in the context of the current Russia’s war of aggression against Ukraine. The objectives of this proposal are supported by Regulation (EU) 2024/792 establishing the Ukraine Facility. Article 34(3) of the latter provides that assistance under Pillar III of the Ukraine Facility ‘shall also strengthen capacities for conflict prevention, peacebuilding and address pre and post-crisis needs, including through, confidence-building measures and processes that promote justice, truth-seeking, comprehensive post-conflict rehabilitation for an inclusive, peaceful society, as well as collection of evidence of crimes committed during the war. Funding for initiatives and bodies involved in supporting and enforcing international justice in Ukraine may be provided under this Chapter’.

Regulation (EU) 2024/792 establishing the Ukraine Facility provides the legal basis for the Union’s contribution to the International Claims Commission until 2027. On the basis of the objectives set out in Regulation (EU) 2024/792, and in particular under Chapter V, Article 34(3) of said Regulation provides that ‘[a]ssistance under this Chapter shall also strengthen capacities for conflict prevention, peacebuilding and address pre- and post-crisis needs, including through, confidence-building measures and processes that promote justice, truth-seeking, comprehensive post-conflict rehabilitation for an inclusive, peaceful society, as well as collection of evidence of crimes committed during the war. Funding for initiatives and bodies involved in supporting and enforcing international justice in Ukraine may be provided under this Chapter’. Therefore, as the instrument setting up the International Claims Commission aims to enforce international justice in Ukraine by contributing to a mechanism that will compensate the damages suffered by Ukraine and its population and caused by the Russian Federation’s violations of international law, Article 34(3) of Regulation (EU) 2024/792 provides for the appropriate legal basis for the Union to provide its financial contribution to the Claims Commission until 2027. The budget line that would cater for this expenditure would be line 16 06 03 01 — Union accession assistance and other measures, whereby in the relative budget remarks it is explained that this item ‘will also cover support for […] other measures that are complementary to EU action, such as accountability mechanisms for Russia’s war of aggression’. The Union’s contribution to the Register of Damage is also covered by the Ukraine Facility.

Regarding reporting arrangements, the Union’s participation in the negotiations on setting up the Claims Commission shall be conducted in consultation with a special committee within the meaning of Article 218(4) TFEU. The Commission shall regularly report to the special committee on the steps undertaken pursuant to this Decision and consult it on a regular basis. Whenever so requested by the Council, the Commission shall report to it on the conduct and the outcome of the negotiations, including in writing.

With regard to the method of implementation, Article 245 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council (6), which enables the Union to pay membership fees to bodies of which the Union is a member, is applicable to the Union’s contribution to the Claims Commission.

No specific risks have been identified at this stage.

Following the Commission central services' guidance, the cost of the controls at Commission level is assessed by the cost of the different control stages. The overall assessment for each management mode is obtained from the ratio between all those costs and the total amount paid in the year for the related management mode.

Standard rules for this type of expenditures apply.

Regulation (EU) 2024/792 establishing the Ukraine Facility provides for the legal basis for the Union’s contribution to the International Claims Commission until 2027. On the basis of the objectives set out in Regulation (EU) 2024/792, and in particular under Chapter V, Article 34(3) of said Regulation provides that ‘[a]ssistance under this Chapter shall also strengthen capacities for conflict prevention, peacebuilding and address pre- and post-crisis needs, including through, confidence-building measures and processes that promote justice, truth-seeking, comprehensive post-conflict rehabilitation for an inclusive, peaceful society, as well as collection of evidence of crimes committed during the war. Funding for initiatives and bodies involved in supporting and enforcing international justice in Ukraine may be provided under this Chapter’. Therefore, as the instrument setting up the Claims Commission aims to enforce international justice in Ukraine by contributing to a mechanism that will compensate the damages suffered by Ukraine and its population and caused by the Russian Federation’s violations of international law, Article 34(3) of Regulation (EU) 2024/792 provides for the appropriate legal basis for the Union to provide its financial contribution to the International Claims Commission until 2027.