News date: 13 September 2024
On 12 September 2024, Marina Riashchenko, Counsel at Ilyashev & Partners Law Firm, delivered a webinar entitled “Recovering Business Damages Caused by Russia’s War Against Ukraine: Practical Recommendations”. The event was organised by SME ONLINE Hub, an educational platform for entrepreneurs, created within the framework of the Unlimit Ukraine project of the European Business Association (EBA), Raiffeisen Bank and Visa.
Marina Riashchenko highlighted the types of damages caused by Russia’s armed aggression which must be compensated by the aggressor state, by providing practical recommendations for the business sector on steps for recording and collecting respective evidence, its assessment and potential compensation mechanisms. Marina noted that strategies for recovering damages caused by Russia’s armed aggression may differ and should be considered for each specific case. Individuals and legal entities that have suffered damages can choose the approach that will be the most cost-effective and applicable for them.
While commenting on the specifics of court proceedings on claims for war damages, Marina spoke about the potential risks and difficulties that the business may face. These risks and difficulties include claim dismissal, reduction of stated claims, recognition and enforcement of Ukrainian court judgments in foreign jurisdictions.
“Compensation by the state for damage caused to legal entities as a result of Russia’s armed aggression is not currently established by law in Ukraine. Only 8% of private companies received financial assistance from the State,” Marina Riashchenko said. “An approachable way to recover damages from Russia is to bring a claim before a competent Ukrainian court and enforce its decision abroad. To begin with, you need to select your own strategy, decide on a foreign jurisdiction, locate Russian assets in a specific country, and seek legal advice from local lawyers. Recognizing and enforcing these decisions, however, has certain nuances. At the stage of preparing a claim, all procedural steps must be followed. The proper notification of the defendant, i.e. the aggressor state, as well as the proper and fair assessment of damages are of particular importance.”
Over 130 entrepreneurs and SME ONLINE Hub members attended the webinar.
SME Hub is an intensive educational program allowing small and medium-sized business owners to acquire the necessary knowledge and practical skills to successfully do their business in Ukraine and abroad from professional business practitioners of large corporations.