PACE Legal Committee backs report seeking use of frozen Russian assets for ECHR compensation
The Legal Committee of the Parliamentary Assembly of the Council of Europe (PACE) has approved a report by UK member Tony Vaughan calling for a more active role for the Council of Europe in confiscating frozen Russian sovereign assets. The core proposal would channel Russian assets frozen in member states into payment of European Court of Human Rights (ECHR) "just satisfaction" awards, primarily in interstate cases between Ukraine and Russia. Experts cited in the coverage consider the legal route workable only through political decisions in major European capitals.
Key points
- PACE's Legal Committee approved the confiscation report in early September.
- The report was authored by UK PACE member Tony Vaughan.
- It proposes using Russian assets frozen in member states to satisfy ECHR "just satisfaction" awards.
- The mechanism would apply primarily to interstate cases between Ukraine and Russia.
- Implementation would require either a Council of Europe Targeted Fund, national-level execution, or amendments to national law and possible Council of Europe Committee of Ministers action.
- The bulk of frozen Central Bank of Russia assets sits at the Euroclear depository in Belgium.
- Experts cited say current ECHR compensation sums are small relative to the total volume of frozen Russian assets.
Why it matters
The report marks the first time the idea of using frozen Russian assets through the ECHR mechanism has reached consideration by a Council of Europe institution. If acted on, it would represent a significant shift in international practice on aggressor-state reparations. It also shows multiple Council of Europe instruments — the Register of Damages, the International Compensation Commission, and now PACE recommendations — converging on the same goal of redirecting Russian assets to Ukraine.
What happened
At the beginning of September, the Legal Committee of PACE approved a report by British member Tony Vaughan urging a more active Council of Europe role in confiscating Russian sovereign assets. The report's central idea is that member states should redirect Russian assets frozen in their jurisdictions toward satisfying ECHR judgments that require Russia to pay "just satisfaction," above all in interstate cases brought by Ukraine against Russia and in other rulings where Russia has refused to pay. Execution could take two forms: a dedicated Council of Europe Targeted Fund, or national-level enforcement of ECHR awards, the latter of which would likely require changes to national legislation or a separate recommendation from the Committee of Ministers of the Council of Europe. Council of Europe bodies can only issue non-binding recommendations on Russian sovereign assets, since they hold no leverage over the custody or legal status of those funds. The bulk of Central Bank of Russia assets sits at the Euroclear depository in Belgium. Previous ECHR awards have run into the billions — including a €1.86 billion ruling in favour of the now-defunct YUKOS company — but experts quoted in the coverage note that current "just satisfaction" sums remain small relative to the total stock of frozen Russian assets, and that the decisive obstacle is a lack of political will in major European capitals rather than a shortage of legal instruments.
How Ukrainian sources describe it
The Ukrainian-language coverage frames the story around Strasbourg-based institutions and their potential role as channels for redirecting Russian assets to Ukraine. It foregrounds ECHR "just satisfaction" as a concrete legal route, alongside the Special Tribunal on the crime of aggression and the Register of Damages for Ukraine. The reporting also underlines that most frozen Central Bank of Russia assets are held at Belgium-based Euroclear, underscoring the practical scale of any future confiscation.
Background
The Council of Europe expelled Russia after the start of the full-scale invasion and has since built several Ukraine-focused instruments: the Register of Damages for Ukraine, an International Compensation Commission established under a Council of Europe treaty, and the Special Tribunal on the crime of aggression. Most frozen Russian Central Bank assets sit at the Euroclear depository in Belgium. As early as April 2022, PACE called for confiscated assets of sanctioned Russian citizens to be used to compensate Ukraine, and Ukraine has been working on an international compensation mechanism since May 2022. Earlier legal groundwork includes the so-called Akande Memorandum, prepared by Dapo Akande and Philippe Sands, and a separate memorandum by Philippe Webb for the European Commission Research Service. Separately, the European Council has approved a two-year, €90 billion aid package for Ukraine intended to be repaid from future Russian reparations.