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Estonian government approves draft law on use of frozen Russian assets

Thursday, 12 October 2023, 19:45
Estonian government approves draft law on use of frozen Russian assets
FLAG OF ESTONIA. PHOTO: GETTY IMAGES

The government of Estonia has approved and will submit to the parliament an amendment to the International Sanctions Act that provides domestic rules for the use of frozen assets of sanctioned persons to compensate for the damage caused to Ukraine by the Russian war.

Source: European Pravda, referring to the press service of the Estonian government

Details: According to the draft law, Estonia's legal space will be organised more broadly so that the competence and powers of institutions in the implementation and supervision of sanctions are clearer and more effective, the government said in a statement.

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"The draft law, which the government and I submitted to the parliament today, allows the use of frozen assets of persons sanctioned in Estonia to compensate for damage from the war in Ukraine. We should be an example and an incentive for other European countries to establish similar rules. Russia should compensate Ukraine for everything caused by the war's harm", said Kaia Kallas, the Prime Minister of Estonia.

Kallas expressed her wish that the European Union "complete the work on the use of Russian frozen assets and the development of practical solutions as soon as possible".

Estonian Foreign Minister Margus Tsahkna welcomed Estonia's initiative to use frozen Russian assets.

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"I am glad that the government has approved the draft law today ... the purpose of which is to organise the legal space of Estonia in order to increase the competence and powers of the institutions for the implementation of sanctions and their supervision," the minister said.

"Estonia's initiative to use frozen assets of Russia to compensate for damages caused by Russia's brutal war in Ukraine is part of the draft law. Money for compensation for damages caused by Russia to Ukraine should not come only from taxpayers of other countries," he added.

The Foreign Minister explained that according to the draft law, frozen Russian assets will remain frozen until war damages are compensated.

The application of this mechanism requires an international agreement with Ukraine or an international compensation mechanism.

In Estonia, at the time of draft law preparation, assets worth about 38 million euros were frozen on the basis of international sanctions.

Background:

  • In September, Tsahkna said that Estonia planned to become the first country in the European Union to legalise the confiscation of Kremlin-linked assets to finance the recovery of Ukraine.
  • The principles of using frozen Russian assets to support Ukraine were approved by the Estonian government in June.

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