According to the latest data, as a result of a full-scale war, russia caused losses to Ukraine in the amount of more than 600 billion dollars as of the beginning of 2023, as noted by the Prime Minister of Ukraine.

The damages relate to the demolition, destruction and damage of energy facilities, offices, warehouse and production facilities, etc. In turn, the energy sector became one of the main targets of the russian military aggression, according to the Ministry of Energy of Ukraine, more than 50% of thermal, 30% of solar, and 90% of wind generation were damaged, destroyed, or occupied.

At the moment, specific mechanisms for compensation of losses are in the process of development. As of today, there is no clear and unified procedure and algorithm for damages recovery, but a plan for such measures is being developed.

Among the compensation potential ways for damages, GOLAW lawyers have identified the following:

  • Compensation for losses by the international commission for consideration of claims of individuals, legal entities, states, regarding losses caused by war (The Ministry of Justice, together with international partners, is working on its creation).
  • Compensation of losses by a specially created commission at the national level.
  • Legal recovery of damages in a national court.
  • Application to the international investment arbitration court.
  • Recovery of damages based on a foreign court decision.
  • Appeal to the European Court of Human Rights.

As the Ministry of Justice notes, the existing international ways for various reasons cannot guarantee effective financial compensation payments, therefore Ukraine is currently actively working, at the state level, on the creation of an international compensation mechanism. Сaused damages are planned to be compensated through reparations and confiscated assets of russia.

Learn more about the above ways of compensation for damages, as well as practical cases regarding compensation for losses in the field of energy in the webinar video recording.

Webinar recording: