Estonian President Alar Karis officially enacted a law on Thursday that allows Russian assets frozen under sanctions to be used for reparations payments to Ukraine.
The measure was passed by the parliament of the Baltic EU and NATO country in Tallinn earlier this month.
It allows the assets of Russian companies and individuals who can be proven to have contributed to the military aggression to be used as compensation for the damage caused by Russia's invasion.
Karis admitted in a statement that the confiscation of assets due to involvement in military aggression raises unresolved legal questions.
However, he said that parliament must be able to make political decisions even in such a grey area.
Critics of the law argued that it may be unconstitutional and that its implementation would be difficult and time-consuming.
Estonia is the first European country to pass such a law.
"Regardless of what one thinks of the solution chosen in Estonia, there is no doubt that we need to find effective ways to ensure the right of victims of aggression to compensation from those who caused the damage," Karis said.
Due to legal concerns and fears of retaliatory measures from Moscow, many EU states are showing restraint when it comes to the use of Russian assets.
So far, the EU has only been able to agree to transfer the interest income from frozen Russian assets to Ukraine.
