Shmyhal outlines steps to attract frozen Russian assets for Ukraine’s reconstruction
Prime Minister of Ukraine Denys Shmyhal has outlined four necessary steps to involve frozen Russian assets in the further reconstruction of Ukraine.
The Prime Minister wrote this in his column for The Guardian, Ukrinform reports.
“We have no doubt that the war with Russia will end with Ukraine’s victory. But when the war is over, the big question will be who will pay for its consequences? Who will pay for the reconstruction of Ukraine?” Shmyhal wrote.
According to the World Bank, $411 billion is needed to rebuild Ukraine. That far exceeds our country’s GDP in 2022, and that isn’t the final amount.
“Russia has already killed and injured over 22,000 Ukrainian civilians, destroyed and damaged 1,500 hospitals, hit 10% of our education infrastructure and 50% of our energy infrastructure; 2.4 million people have had their homes damaged or completely destroyed. Because of the Russian army’s actions, about 30% of Ukraine’s territory may be contaminated with mines and shells. That is an area roughly the size of Great Britain. The scale of destruction is unlike anything Europe has seen since the second world war,” the Prime Minister noted.
According to Shmyhal, for the first time in history, we have the chance to put into effect the principle of just retribution, whereby the aggressor finances the reconstruction of what has been destroyed.
In his opinion, under no circumstances should Russian frozen assets be allowed to return to the Russian Federation. This would mean the defeat of the free world and maximum injustice to Ukraine.
“Russia’s money should become a major source of recovery. It should not be funded by Ukrainians, partner state taxpayers or international financial organisations. Russia must pay. That would be logical, fair and just,” Shmyhal stressed.
He noted that the first practical step was taken at the summit of Council of Europe member states in Reykjavík, where a register of damage was launched. A digital record of the destruction caused by Russian aggression is the first element of the international compensation mechanism.
However, according to Shmyhal, there are four more important steps ahead.
“First, an international commission to determine the amount of compensation to be paid to victims on the basis of the data in the register must be established. Second, partner states must amend their legislation to allow the diversion of “frozen” Russian assets to Ukraine. Third, a compensation fund in which the money will be collected must be set up. Finally, the practical implementation of confiscations and payments for reconstruction will be needed,” he wrote.
Shmyhal added that Ukraine understands the fears of its partners, but Russia’s criminal actions are so unprecedented that fundamentally new, courageous decisions are needed. These decisions will be important not only for Ukraine, but for the whole world.
“We propose to create a universal system whereby the internationally recognised aggressor and perpetrator of war pays for its crimes. This will be a fully legitimate mechanism based on the relevant international agreement. Today the ball is in our partners’ and allies’ court. It depends on them how quickly we move from an idea to its implementation. We call on our partners, especially from the US, the UK, the EU and Canada, to show leadership and take practical steps to seize relevant assets for the reconstruction of Ukraine,” Shmyhal wrote.
He added that the seizure of Russian assets is in the national interest of states seeking lasting peace and global prosperity in a world in which autocratic regimes are afraid to attack their neighbours. For they will know that they will be forced to pay for everything.
As reported by Ukrinform, the two-day Ukraine Recovery Conference started in London Wednesday, June 21.