Operations Research for the Recovery and Reconstruction of Ukraine

Исследование операций для восстановления и реконструкции Украины
2022-09-21

Ukraine reconstructiondamage assessmentoperations researchreal estate valuationwar damage documentation
Lack of the order for accounting data on damaged and destroyed things (movables, animals), while accounting for data on damaged and destroyed real estate (real estate, real estate) is provided by the resolution of the Cabinet of Ministers of Ukraine dated 26.03.2022 № 380 "On collection, processing and accounting for information on damaged and destroyed real estate as a result of hostilities, terrorist acts, sabotage caused by the military aggression of the russian federation." Key features:• Subordination of the choice of approaches and methodology for assessing damages to the legal strategy for future claims against the aggressor state (for example, violation of the Convention on the Laws and Customs of Land Warfare of 18.10.1907;appeal to the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Russian Federation investment of 27.11.1998,use of UN resolution A / RES / 60/147 or other options), as improper or incorrect preparation of evidence of damages may worsen Ukraine's position in the courts;• Use at least two separate approaches to assess the amount of damage, namely: (1) preliminary (analytical) damage evaluation, which will be used mainly for crisis communication, policy assessments and a simplified methodology that can be used by ministries, other central and local executive authorities.However, these estimates will generally not be able to be used to pay compensation and cannot be considered as appropriate evidence in the courts; (2) detailed (objectby-object) assessment of damages, which will be carried out in accordance with the legislation on property valuation, land valuation, forensic examination, will be determined by experts with special qualifications and, unlike previous assessments, will be verified and have legal significance, and can be used for the following lawsuits (including in international courts and courts of other countries), compensation payments, etc.;• The possibility, with the support of international technical assistance projects, to start creating a single information and communication geoinformation system and the State Register of Damage Caused by Armed Aggression -to record destruction and damage, including using a single cartographic basis, as well as remote zoning technologies for monitoring of mass damage and destruction. Key constraints/framework:• The main challenge for developing a recovery plan is the considerable uncertainty surrounding the lack of possible timelines when the war will end.There are several scenario plans to end the war (from the return to the borders of 1991/on 24.02.22 to the attempts of the Russian Federation to capture the entire territory of Ukraine and a significant number of options between them), which can significantly change the content and priorities of such a plan;• It is very likely that the active phase of hostilities in the East and South-East of Ukraine will continue both during the work on the document and at the end of June -the expected period of presentation and approval of the plan.Estimates of the duration of this phase and the end of the war vary from a few months to several years.2. Goals, objectives, stages of the Recovery Plan in the direction of "Audit of war losses" 2.1 Purpose -one or more generalized goals, proposed changes to solve problems in the area DRAFT A unified conceptual approach and action plan should be developed and implemented for state and local governments to identify the damage caused by the war, to unify the approaches and methods of such determination. 2.2The main tasks indicating the necessary measures / steps for their implementation, divided into stages • Setting loss targets and general approaches to achieving loss targets (in terms of each target);• Identification of those responsible for the implementation of general approaches in terms of objectives;• Unification of methodological support and digitalization of loss determination (including inventory, fixation of losses, determination of their volume, evaluation and storage of loss determination results);• Identification of final executors of the processes of determining losses (inventory, recording of losses and their volume, assessment); DRAFT Financial sector 0.02 0.2 0.02 Total 95.5 126.8 165.1 Additional needs for demining Demining (according to the World Bank preliminary assessment) 70 Total, with demining 235,1 Chart 1.General needs for financial support of Ukraine, $ billion
1
Damage-assessment methods must be aligned with Ukraine’s legal strategy for future claims against Russia, because improperly prepared evidence could weaken Ukraine’s position in court.
2
Detailed assessments should follow property-valuation, land-valuation, and forensic-examination legislation, be conducted by qualified experts, and support litigation, including in international and foreign courts.
3
Preliminary estimates are intended for simplified administrative use and generally cannot support compensation payments or serve as admissible court evidence.
4
The paper recommends using two separate damage-assessment approaches: preliminary analytical estimates for crisis communication and policy-making, and detailed object-by-object assessments for legally valid compensation claims.
5
Ukraine lacks an established accounting framework for damaged and destroyed movable property and animals, whereas damaged and destroyed real estate is covered by Cabinet Resolution No. 380 of 26 March 2022.

Damage assessment and accounting for damaged and destroyed property in Ukraine resulting from Russia's military aggression

Operations-research approaches and methodologies for preliminary and detailed, legally valid damage assessment to support Ukraine's recovery, reconstruction, compensation claims, and litigation

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2022-09-21
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