Filing a lawsuit for compensation of damages caused by the armed aggression of the Russian Federation

After the beginning of full-scale military aggression, the Supreme Court of Ukraine adopted a ruling according to which the Russian Federation has lost immunity in cases concerning compensation for damages. Thus, the jurisdiction of Ukrainian courts in such disputes was confirmed. Regarding jurisdiction for business cases, it is advisable to apply to the commercial (economic) court at the location of the damaged property. A decision of a Ukrainian court may later serve as a basis for a ruling by a court of another jurisdiction (in particular, in countries where frozen Russian assets are located) to seize the aggressor state’s funds and pay compensation to victims. The company “DE-JURE” provides legal support for businesses in documenting damages and obtaining compensation, including professional assistance at all stages of case proceedings, doing everything possible to ensure a favorable court decision for our clients.

What is a claim for business damage compensation?

A claim for business damage compensation is an important step toward obtaining fair compensation and holding the aggressor state accountable. We recommend that, simultaneously with preparing the claim, an application be submitted to the International Register of Damage and forms be completed for the International Criminal Court — this increases the chances of achieving the goal and helps draw attention to unpunished crimes of the Russian Federation in Ukraine.

In addition to comprehensive assistance and court representation, the company “DE-JURE” provides consultations on alternative compensation mechanisms for damages caused by the armed aggression of the Russian Federation, including Ukrainian state programs (including a pilot project for businesses located in frontline areas), as well as regional and local programs.

In which cases is a claim for business damage compensation filed?

If a production facility has been affected by a strike, fire, blast wave, or similar events, resulting in the business being unable to fulfill its obligations and losing profit, this is grounds for preparing a compensation claim.

First of all, the entrepreneur must collect evidence of the company’s losses: photo and video documentation of destruction, property damage reports, accounting documents confirming losses, and other materials. It may also be appropriate to conduct a forensic examination to determine direct damages and lost profits.

How does the consultation for preparing and filing a claim for compensation of damages caused by the Russian Federation take place?

Cases involving compensation for damages caused by the military actions of the Russian Federation usually require a significant amount of time for communication with the client regarding various issues, reviewing reports from competent authorities, expert assessments and forensic examinations, communication with investigators, and so on.

The first step in the lawyer’s consultation is to identify the client’s issue — the business that has been affected by the military aggression of the Russian Federation — as well as to discuss the actions already taken. After that, the lawyer asks about the client’s further plans and goals: whether they wish to receive compensation under a Ukrainian state program, obtain a court decision against the Russian Federation or its individual representatives, apply to international arbitration, or use other mechanisms.

Together with the client, the lawyer develops an action plan that will help achieve the goal and agrees on the cost of services.

If the client decides to pursue justice through the court, the lawyer reviews the available documents and collects the necessary evidence. If needed, the company “DE-JURE” helps organize professional expert valuation, forensic and technical examinations, and other studies. Further cooperation with experts is carried out by the attorney.

What documents must a business provide for a consultation on a claim against the Russian Federation?

It is important to document as fully as possible the consequences of the event (strike, fire, explosion) and the resulting damages. Documents that an entrepreneur must provide during a consultation include:

• information about the claimant and proof of ownership of the affected property;
• a copy of the State Emergency Service (SES) report prepared at the scene;
• an act of destruction or damage to property prepared by the entrepreneur, which may include photo and video evidence of the incident. Ideally, this document should be signed not only by the entrepreneur and employees but also by representatives of the military administration, local authorities, or state bodies;
• a report from the commission inspecting buildings and structures (or another authorized body, which may vary by region). Usually, the commission is summoned by the affected party, and it enters the data into the register of damaged property.

If news about the damage to the business as a result of a strike was reported in the media or online public pages, it may also be included as evidence. A report from a professional appraiser, technical expert, or forensic expert is not required at the initial consultation — this is handled by the lawyer, who will determine what is necessary and, if requested, recommend a specialist.

How is a claim for compensation of business damages caused by the armed aggression of the Russian Federation prepared?

The lawyer prepares a statement of claim in compliance with all procedural requirements and attaches the collected evidence. It must prove ownership of the damaged property by the claimant, the calculation of damages and lost profits caused by the war, and the causal link between the military aggression of the Russian Federation and the claimant’s losses.

In commercial proceedings regarding claims for damages against the defendant (the Russian Federation or its representatives or other persons, such as “oligarchs”), the claimant is exempt from paying court fees when suing the Russian Federation itself.

What evidence confirms damages caused by the aggression of the Russian Federation?

A thorough collection of evidence is a necessary basis for court proceedings: the mere fact of property damage during hostilities is not sufficient for the court to rule in favor of the plaintiff. Therefore, before filing a claim, the following evidence must be collected:

• Proof of ownership of property: extract from the State Register of Property Rights, registration documents for vehicles, real estate and production equipment, accounting documents, inventory records, inspection reports, etc. If no extract is available, measures should first be taken to register ownership rights;
• Facts of damage or destruction of property: reports from the State Emergency Service (SES), acts of destruction or damage to property, inspection reports prepared by local authorities, the National Police or military administrations, eyewitness testimony, photo and video documentation of the incident;
• Calculation of damages: expert reports, estimates for restoration works, accounting documents, etc.;
• Causal link between destruction and actions of the Russian Federation: official warnings about missile threats, geolocation data, photo and video evidence, eyewitness statements, expert examinations.

After reviewing sufficient evidence, the court makes a decision, which in turn becomes the basis for a foreign court’s ruling on compensation to the victim from seized Russian accounts.

How are business damages from the aggression of the Russian Federation calculated?

Preliminarily, damages caused by military aggression are calculated by the company’s accountant and lawyer. The exact amount is determined by an appraiser or forensic expert if necessary. In particular, this is required for filing a lawsuit in court.

If it is a small business (sole proprietor) without a legal department, a specialist from the company “DE-JURE” is involved in the calculation. Part of the court costs for valuation (up to half) may be compensated by the state under local programs — assistance with this is also provided.

What does legal support in cases of compensation for damages caused by the Russian Federation include?

Legal support from “DE-JURE” in cases of compensation for damages caused by the Russian Federation primarily includes assistance with proper documentation of initial damage recording and collection of evidence. The lawyer then represents the client’s interests in court and handles appeal and cassation proceedings if the decision is challenged.

If necessary, the company organizes cooperation with a professional appraiser or forensic expert, participates in reviewing the final report or conclusion, and monitors deadlines.

In addition, assistance is provided in submitting applications to the International Register of Damage for both individuals and, later, legal entities.

What court results can businesses expect in cases of compensation for damages caused by the Russian Federation?

The number of favorable court decisions in favor of plaintiffs in cases related to damages caused by the military aggression of the Russian Federation is steadily increasing. Regarding enforcement, forced seizure of Russian assets within Ukraine is possible, but such assets are insufficient.

If Russian property is located abroad, it is possible to apply to a foreign court for recognition and enforcement of the Ukrainian court decision. For this, the plaintiff must comply with all procedural requirements, including notifying the defendant (the Russian Federation) about the case and sending a copy of the claim with attachments — which can also be handled by the lawyers of “DE-JURE”.