Estonian politicians have agreed to draft legislation to use frozen Russian assets to contribute to rebuilding Ukraine, with the Ministry of foreign affairs drafting legislation for amending the International Sanctions Act that will be submitted for approval to the parliament.
“Ukraine is a victim of Russia’s war and must be compensated by Russia. This is why we are working on a solution that would allow the use of frozen assets, which we have seized with sanctions from Russian citizens and companies, to compensate for war damages,” said Prime Minister Kaja Kallas.
Estonia is the first EU country to start working on such a scheme, but other countries might use this model in the future. Foreign minister Margus Tsahkna emphasised the importance of providing deterrence and compensation for aggression.
„The existence of such a mechanism raises the cost of the aggression, especially if similar solutions are used by other countries or the European Union,” he said.
The Ministry of Foreign Affairs (MFA) said that an international agreement with Ukraine or an international compensation mechanism is still required for using frozen assets, and a first step is to establish a register of war damages in Ukraine at the Council of Europe.
