Draft law No. 7385 proposes to establish a mechanism for compensation for damage caused by armed aggression against Ukraine.
It establishes the Fund for Compensation for Damage Caused by the Armed Aggression of the Russian Federation.
The Fund shall make
- payment of the damage caused to the victim;
- managing the compensation system;
- accumulate and account for funds provided to Ukraine from the seized funds;
- prepares documents and makes payments for the compensation.
The Fund's resources are not included in the State Budget of Ukraine.
The Fund is headed by a chairman elected from the members of the Fund's board for a 3-year term.
However, this draft law contains a number of critical shortcomings:
📌 there is no mention of a competitive selection of the Board and the Director of the Fund. As a result, it is possible to appoint people who will not be competent and will not be able to properly perform their functions; in addition, it opens up the possibility of corruption influence on such appointments;
📌 Establishment of a non-transparent mechanism for compensation for various types of damage will not allow to realise the purpose of the draft law.
It is necessary to revise these provisions to ensure transparency in the consideration of applications and payment of compensation to affected persons.
Given the identified risks and shortcomings, the draft law needs to be substantially revised.
More details in our opinion