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Ukrainian Reparation Loan
Report

Ukrainian Reparation Loan

How it Would Work

SSRN, 2024


Editorial Rating

8

Qualities

  • Applicable
  • Eye Opening
  • Hot Topic

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.

Take-Aways

  • Ukraine has an international right to claim war reparations against Russia.
  • The G-7 nations control $300 billion in frozen Russian assets; these funds could be used as collateral for a syndicated loan to Ukraine.
  • The syndicated loan obligation would provide Ukraine with funds to continue its war efforts, while providing the G-7 with a guaranteed repayment channel.

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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