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Ukrainian Reparation Loan
Report

Ukrainian Reparation Loan

How it Would Work

Hugo Dixon, Lee C. Buchheit and Daleep Singh
SSRN, 2024
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8

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  • Eye Opening
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Recommendation

After Russia invaded Ukraine in 2022, the G-7 nations froze roughly $300 billion in Russian assets. According to international law, Ukraine has a right to claim reparations for war damages. Accessing these funds is problematic, however, as only Ukraine has a claim against Russia, while the G-7 are stewards of the frozen assets. In this thoughtful proposal, finance professionals Hugo Dixon, Lee C. Buchheit and Daleep Singh examine the mechanics of a “syndicated reparation loan” and its efficacy in assisting Ukraine. Readers will find this an instructive look at the role of finance in geopolitics.

Summary

Ukraine has an international right to claim war reparations against Russia.

In response to the February 2022 Russian invasion of Ukraine, Ukrainian allies, led by the G-7 nations, began sending financial aid to the embattled country. The G-7 also facilitated the freezing of some $300 billion in Russian assets. The frozen Russian assets could provide Ukraine with a pivotal source of capital to fund ongoing war efforts, as well as to repair and revitalize its physical and social infrastructure.

According to international law, Ukraine has a legal right to financial reparations, but it does not have access to the $300 billion and so cannot formally make a claim on the funds. The G-7, conservators of the assets, lack the legal standing to assert war damages against Russia.

The G-7 nations control $300 billion in frozen...

About the Authors

Hugo Dixon is Commentator-at-Large for Reuters. Lee C. Buchheit is Professor (Hon.) at the University of Edinburgh Law School. Daleep Singh is a former US Deputy National Security Adviser for international economics.

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