How Canada could use Russian state assets to rebuild Ukraine
Canada was the first state to put such measures into place with amendments to the Special Economic Measures Act (SEMA) that allow for seizure and forfeiture of Russian-owned property by way of court proceedings.
- Canada was the first state to put such measures into place with amendments to the Special Economic Measures Act (SEMA) that allow for seizure and forfeiture of Russian-owned property by way of court proceedings.
- The government has already seized a company belonging to Russian oligarch Roman Abramovich, and, more recently, a privately owned Russian cargo plane.
What about state-owned assets?
- Under the international law of state immunity, states are generally immune from court proceedings in other countries.
- Their property is protected from seizure or execution, especially assets owned or held by central banks.
‘Multilateral Asset Transfer’
- The answer, in my view, is yes, but it requires satisfying two sets of standards: international law and Canadian law.
- On the international law side, several colleagues and I recently wrote that repurposing Russia’s state assets would be lawful under a system of what we call “Multilateral Asset Transfer,” using the doctrine of “countermeasures.” The argument goes like this.
- The Multilateral Asset Transfer plan would see states transfer these seized Russian assets into escrow accounts until an international commission can be established to determine how much Russia will have to pay Ukraine.
Several pathways
- In a recent paper, my co-authors Allan Rock, Fen Hampson and I argued that there are several routes available.
- Cabinet can review the situation and declare that Canada is imposing countermeasures by suspending immunity over Russia’s state assets.
- In times when Russia’s own conduct has imperilled international rule of law, this is the appropriate and necessary response.