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Europe launches international commission for Ukraine war damages
Published by Global Banking & Finance Review®
Posted on December 16, 2025
4 min readLast updated: January 20, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on December 16, 2025
4 min readLast updated: January 20, 2026
Europe launches a commission to compensate Ukraine for war damages, with over 86,000 claims submitted. Reconstruction costs are estimated at $524 billion.
By Anthony Deutsch and Stephanie van den Berg
THE HAGUE, Dec 16 (Reuters) - Europe launched an International Claims Commission for Ukraine on Tuesday in an effort to ensure Kyiv is compensated for hundreds of billions of dollars in damage from Russian attacks and alleged war crimes.
The gathering in The Hague of dozens of leaders including Ukrainian President Volodymyr Zelenskiy coincided with a U.S.-orchestrated diplomatic push to end the war in Ukraine that was triggered by Russia's full-scale invasion in February 2022.
"Every Russian war crime must have consequences for those who committed them," Zelenskiy said, before 34 European leaders signed a convention to formally launch the commission at Tuesday's gathering in The Hague.
"That's exactly where the real path to peace begins," he added. "It's not enough to force Russia into a deal. It's not enough to make it stop killing. We must make Russia accept that there are rules in the world."
REPARATION FOR VICTIMS
The establishment of the claims commission does not mean Ukrainians can expect swift reparations for damages.
Details on how any damages awarded by the commission, to be based in the Netherlands, would be paid still need to be worked out. Early discussions have touched on using Russian assets frozen by the EU, supplemented by member contributions.
"The goal is to have validated claims that will ultimately be paid by Russia. It will really have to be paid by Russia; this commission offers no guarantee for the damages," Dutch Foreign Minister David van Weel said.
The two-year-old Register of Damage, which will become part of the claims commission, has already received over 86,000 claims submitted by individuals, organisations and public bodies in Ukraine under a wide range of categories.
Russian officials were not immediately reachable to comment on the commission. The Kremlin denies accusations of war crimes by Russian forces in Ukraine. It has also described the EU's proposal to use immobilised Russian assets to finance Ukraine's defence and budget needs as illegal and threatened retaliation.
POSSIBLE AMNESTY IN PEACE DEAL
Plans to compensate victims of abuses in Ukraine, ranging from sexual violence and child deportations to the destruction of religious sites, could be complicated by the inclusion of an amnesty for wartime atrocities in any peace deal, earlier proposed by U.S. President Donald Trump's administration.
More than 50 states and the EU drafted the Council of Europe convention to establish the commission, which was to take force after ratification by at least 25 signatories, as long as sufficient funds had been secured to finance its operation.
The commission - the second part of an international compensation mechanism for Ukraine - will review, assess and decide on claims submitted to the Register of Damage for Ukraine, which was created by the Council of Europe in 2023, and determine compensation awards on a case-by-case basis.
Claims can be filed for damage, loss or injury caused by Russian acts committed in or against Ukraine upon or after the February 24, 2022 invasion. The claims, which cover violations of international law, can be brought by affected individuals, companies or the Ukrainian state, a draft of the proposal said.
$524 BILLION FOR POST-WAR RECONSTRUCTION
The World Bank has estimated the cost of reconstruction in the coming decade at $524 billion (447 billion euros), or nearly three times Ukraine's economic output in 2024.
But that figure is through December 2024 only and does not include damage caused this year, when Russian drone and missile strikes escalated in a campaign targeting utilities, transport and civilian infrastructure.
The Council of Europe was founded in 1949, four years after the end of World War Two, to promote democracy, human rights and the rule of law across the continent.
(1 euro = $1.1723)
(Additional reporting by Bart Meijer and Anna Pruchnicka; Writing by Anthony Deutsch and Ingrid Melander; editing by Mark Heinrich)
An International Claims Commission is a body established to assess and adjudicate claims for compensation related to damages or losses incurred, often due to war or conflict.
Reparations are compensatory payments made to individuals or groups for losses or damages suffered, typically in the context of war crimes or human rights violations.
Economic planning refers to the process by which economic decisions are made regarding the allocation of resources, investment, and development strategies to achieve specific goals.
Frozen assets are financial assets that have been restricted from being accessed or transferred, often due to legal or regulatory actions.
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