Estonia adopted a law on the possible transfer of Russian assets to Ukraine

Estonian Parliament on Wednesday accepted a law that allows the transfer of assets of Russian persons frozen on the basis of international sanctions to Ukraine. 65 members of parliament voted for the adoption of the law, three voted against. We are talking about Estonian assets of both Russian companies and individuals whom the European Union recognized as directly involved in the war in Ukraine.

According to the law, its implementation will be monitored by the Estonian Ministry of Foreign Affairs. Ukraine will have to submit appropriate claims for compensation for damage. Asset owners will have the right to challenge the decision on the use of their property in an administrative court.

Chairman of the Constitutional Commission of the Estonian Parliament Hendrik Johannes Terras statedthat creating legal regulation regarding the use of sanctioned Russian assets is a difficult task for all European countries, and Estonia has become a pioneer here. According to him, Tallinn has been developing an appropriate mechanism for more than six months, consulting with many parties, including foreign experts.

“Russia is an aggressor state. Compensation for the damage caused during military operations should not fall on the shoulders of Ukraine and its allies. Russia is responsible for the damage caused, and it must bear this responsibility,” Terras added.

• Starting in 2022, EU states have been discussing the possibility of transferring Russian assets frozen due to sanctions to Ukraine. No legal mechanism has yet been established that would allow frozen assets to be confiscated. However, the EU is developing the possibility of transferring income from these assets to Ukraine – for example, interest on bank deposits.