An important step toward establishing an international compensation commission for Ukraine

On 22 October 2025, the Committee of Ministers of the Council of Europe approved the final text of a convention (“Convention”) on the establishment of a Claims Commission (“Commission”). This followed the Convention’s unanimous (84 votes in favour) support by the Parliamentary Assembly of the Council of Europe (“PACE”) on 1 October 2025.

This Commission will form the cornerstone of the international compensation mechanism designed to provide reparations for the damage caused by the russian federation’s aggression against Ukraine. The Commission represents the second element of this mechanism, following the launched Register of Damage for Ukraine (“Register”), which has already received over 60,000 claims. The third element will be the future compensation fund, through which payments will be made.

Mandate and Functions of the Commission

The Commission will be established as an independent body within the institutional framework of the Council of Europe. Unlike the Register, which merely records submitted applications and evidence, the key task of the Commission will be to review them, determine the validity of claims, and award compensation.

It will operate on the presumption that russia bears responsibility for all the damage caused by its unlawful actions, including acts of aggression and violations of international humanitarian law and human rights. The Commission’s decisions will be final and not subject to further appeal. These decisions will create a legally binding debt owed by the russian federation to the applicants, which will be essential in order to ensure subsequent enforcement.

The Commission will consider claims for damage inflicted since 24 February 2022, within Ukraine’s internationally recognized borders. However, PACE emphasized that in the future, the Commission’s jurisdiction should not be limited to this date and may be expanded to cover damages caused since the onset of aggression in 2014.

Structure and Operating Mechanisms

The key organs of the Commission will include:

• The Assembly, the highest body, composed of all member states, responsible for overall supervision and the election of members of the Council.
• The Council, the executive body, consisting of a smaller group (9–15 member states elected for three-year terms), responsible for the Commission’s day-to-day operations. It will develop and approve all procedures for claims adjudication and make final decisions on compensation based on recommendations received from panels of commissioners.
• Panels of Commissioners, groups of three independent international experts (initially, three such panels are planned), which will consider claims on their merits and provide the Council with recommendations regarding compensation amounts. These commissioners must have expertise in international law, finance, or damage assessment. The panels will begin their work after the Assembly’s first meeting, which must take place within one year of the Convention entering into force.

All operational and compensation costs are expected to be borne by the russian federation. Until it fulfils its obligations, the Commission will be funded through mandatory contributions from member states and voluntary donations.

The Convention also allows for russia’s potential participation in the Commission, but only under strict conditions, including official acknowledgment of responsibility for the damage caused, consent to comply with the Commission’s decisions, and reimbursement of member states’ expenses incurred in maintaining the Commission.

The Commission is expected to have its permanent seat in one of the member states (most likely The Hague) and a special office in Ukraine to facilitate its work on the ground.

Next Steps

The adoption of the Convention by the Committee of Ministers launches a clear legal and diplomatic process expected to be concluded by the end of this year:

1. On 16 December 2025, a diplomatic conference is planned to be held in The Hague, where the Convention will be formally adopted and opened for signature by states. Importantly, not only European countries are invited to sign, but also any other states that voted in favour of UN General Assembly Resolution ES-11/5 of 14 November 2022, “Furtherance of Remedy and Reparation for Aggression against Ukraine”.
2. The Convention will enter into force three months after ratification by 25 states, provided that sufficient financial commitments will have been secured to support the Commission’s initial work. Thus, ratification by EU member states and Ukraine would be sufficient to “launch” the Convention.

Key Challenges

The issue of funding for the awarded compensations remains unresolved. The Convention deliberately avoids addressing this issue to avoid delays in establishing the Commission. PACE has once again urged member states to work towards creating an international compensation fund, particularly by utilizing approximately USD300 billion in frozen russian sovereign assets.

It is expected that the Commission’s decisions may serve as a legal instrument for overcoming sovereign immunity. The existence of a legally established debt to a specific claimant may become a legal basis for national courts in countries where russian assets are held to enforce the Commission’s decisions.

Additional notes

For further information on the topic please contact senior partner Kostiantyn Likarchuk, partners Vadim Medvedev or Oleksii Maslov, or by telephone +380 44 591-3355 or via e-mail.