MARGUS TSAHKNA ⟩ G7 countries approved the reconstruction of Ukraine with Russian funds. But we must go much further than that

Margus Tsahkna, minister of foreign affairs (Estonia 200). Photo: Eero Vabamägi

• The free world needs to collectively do more than express condemnation of Russia in words only.
• We have passed a law that provides a legal basis for the use of frozen assets.

The recently announced decision of the G7 countries to allocate the profits from the interests of frozen Russian assets to support Ukraine is a step forward, but the goal must be to use the main portion of the internationally frozen assets as well. We also emphasized this today in the joint letter of the foreign ministers of the Baltic countries to the G7 countries, Foreign Minister Margus Tsahkna (Estonia 200) writes.

The recently announced decision of the G7 countries to allocate the profits from the interests of frozen Russian assets to support Ukraine is a step forward, but the goal must be to use the main portion of the internationally frozen assets as well. We also emphasized this today in the joint letter of the foreign ministers of the Baltic countries to the G7 countries, Foreign Minister Margus Tsahkna (Estonia 200) writes.

The use of profit from interests, or unexpected income, cannot be the ultimate goal, because the damage caused by Russia in Ukraine is many times greater. Ukraine's reconstruction needs already exceed the 400 billion euro mark, and the total cost of restoring war damage may be close to a trillion euros. All this should not be covered only by the taxpayers of Western countries.

The free world needs to collectively do more than express condemnation of Russia and support for Ukraine in words only. We will be able to help Ukraine win only if we clearly show by actions and decisions that aggression does not pay off and that Putin's scare tactics do not work. For the benefit of Ukraine, the international frozen assets of the aggressor in the amount of 300 billion euros must be used. Estonia, where frozen Russian assets amount to about 30 million euros, is leading the way in this process.

We have passed a law that provides a legal basis for using the frozen assets of people and companies that have contributed to Russian aggression as prepayment for damages that Russia has caused to Ukraine. The real work with its implementation still lies ahead, but a positive precedent has been created for Ukraine with the law proclaimed by President Alar Karis on May 30.

We must clearly show that aggression has a price and severe consequences. If the aggressor goes unpunished and does not have to compensate for the damage caused, it sends a message that aggression pays off.

Simply put, the legal solution developed by Estonia consists of the following steps. First, Ukraine must prove the damage caused and submit a claim to Russia to compensate it. If Russia does not fulfill Ukraine's demand within a reasonable time, Ukraine now has the opportunity to ask for compensation for the damage through assets frozen in Estonia. If Estonia agrees, an agreement is concluded between Ukraine and Estonia or between Estonia and the compensation mechanism.

To compensate the damage claim, the Ministry of Foreign Affairs will determine all the circumstances, carry out the procedure and decide on the use of the assets to compensate Ukraine for the damage caused by Russia. The Ministry of Foreign Affairs must also request the release of frozen assets and the freezing of compensation. Estonia will then transfer and realize the property and the money will be given to Ukraine. However, in accordance with the terms of the agreement between states, the owner of the frozen assets will have a right of claim to the compensation paid by Russia. Characteristic of the rule of law, the owner of the assets will have the right to challenge the use of their assets as compensation in the administrative court.

We must remember that the sovereignty and independence of Ukraine are not the only things dependent on the end result of Russian aggression. The current pivotal moment in European history will determine the security architecture of our part of the world and the survival of our current way of life based on international law and European values.

Therefore, it is in our own interest that Ukraine wins and that Russia compensates for the damage done to Ukraine. It is unacceptable that we let Putin's scare tactics control our future, our decisions and our actions. We must clearly show that aggression has a price and severe consequences. If the aggressor goes unpunished and does not have to compensate for the damage caused, it sends a message that aggression pays off.

We are at the beginning of a long but justified journey, where our common goal is a just and sustainable peace, based on the complete discrediting of aggression as a tool of relations between countries. The use of frozen assets for the benefit of Ukraine would be a significant step towards achieving this.