Ukraine

Tuesday 1st November 2011 Westminster Hall

13:00

[Helen Goodman (Bishop Auckland) (Lab)]

It is a pleasure to see you in the Chair this lunch time, Mrs Riordan. I am extremely grateful to Mr Speaker for agreeing to let me have this debate on our relations with Ukraine at what is obviously a crucial time for that country. The trial and subsequent jailing of Yulia Tymoshenko, who was the Prime Minister of Ukraine and one of the key leaders during the orange revolution, has put Ukraine back on the front pages, and, unfortunately, not for a happy reason. It is important that we have this opportunity to consider what is going on and to ask the Government how they intend to respond to the situation.

We need to be clear that Ukraine is not a far-away country about which we know little. What happens in Ukraine matters very much indeed. It is the largest country in Europe and has a population of 40 million people. It achieved independent national status in 1991, and in 2004, during the orange revolution, the people of Ukraine demonstrated their commitment to and desire for a fully open liberal democracy. We should support all those people who have been campaigning for political reform in Ukraine and demonstrate, at what is clearly a difficult time for them, that we are concerned about what is going on in their country.

Ukraine also has a strategic significance for us and the rest of Europe. It is on the crossroads between Europe, Russia and the Caucasus, and has become one of the major corridors for oil and gas from east to west. That role as a corridor for energy transmission has provoked the recent crisis, because Mrs Tymoshenko was prosecuted for exceeding her powers in signing the deal with the Russians. Many in Ukraine feel that it has severely disadvantaged them, because it agreed too high a price for the gas. The situation is surrounded by many claims of corruption in Ukraine. I do not believe that many people outside Ukraine see this as anything other than a ham-fisted attempt by the current Ukraine Government to settle political scores and to exclude Mrs Tymoshenko from the political scene. Neutral observers from Denmark who are expert in looking at judicial processes have also made some serious criticisms about the way in which the trial was undertaken.

I was fortunate to be able to visit Ukraine in the first week of October. I am a member of the all-party group on Ukraine and I apologise on behalf of its chair, the hon. Member for Maldon (Mr Whittingdale), who cannot attend the debate. I visited Ukraine after the trial, but just before the sentence was announced, and met a lot of people. During that week, I did not meet anyone who thought that the trial was legally valid or morally or politically justified. I met people who were critical of Mrs Tymoshenko’s period in office and who had opposed her politically, but those self-same people were, none the less, critical of the trial and what had gone on. My impression is that the Ukraine Government embarked on that course of action without fully understanding the implications for their reputation either at home or abroad.

I do not think that it would be right for us to become completely fixated with the trial of one person, but unfortunately it seems to be part of a pattern of developments that has led from an open situation to an illiberal one. Other politicians in Ukraine, on both a regional and national level, have been put on trial on charges that some people think are trumped up. The judiciary is appointed by the Executive, so there must be question marks about how independent it is. A survey of the content of the state-owned television channel found that 97% of its broadcasts were supportive of the Government, which is a completely unbalanced situation. Moreover, although the presidential election of 2010 was felt to have been run on a free and fair process, there were more question marks about the way in which recent local elections were run. There are important parliamentary elections to come in a year’s time, so we need to look at the overall political situation in Ukraine. The Tymoshenko trial and sentencing highlight the issues.

Ukraine faces a major strategic choice. Negotiations have been ongoing for an association agreement with the European Union, and the Ukraine Government have repeatedly said that they want to go ahead with it. On the other hand, however, for historical reasons they are pulled towards Russia. I think that some people in Ukraine think that, as an alternative to going along with the EU association agreement, it might be desirable to join the customs union, which Mr Putin is putting together, between Russia, Belarus and Kazakhstan. The Ukraine Government need to find a way forward that maintains good relations with all their neighbours.

We in this country have a long democratic tradition. Our democracy goes through positive phases and phases whereby we may be a little concerned about what is happening, but we know that it takes a long time to build a democratic society. It is partly about institutions, formal arrangements and the law, but it is also about practices, behaviour, common and shared understandings, and the give and take required for a well-functioning democracy. Ukrainians face trying to achieve that with two significant handicaps. The first is the role that some of the oligarchs seem to play in their democracy, and the second is the economic crisis that they face. I was shocked to learn that the Ukrainian economy is 30% smaller now than when the country achieved independence in 1991. Not only is the economy smaller, but there is far greater inequality in the country. It is not therefore surprising that some people are not entirely enamoured of the new politics. High unemployment has led to high levels of emigration. It is unclear, but perhaps 3 million or 4 million people have left Ukraine. They will, by and large, be people in their 20s and 30s. Such a situation has left behind a number of social problems, for example, abandoned children and old people not cared for. Ukrainians really do have a lot on their plate.

We should not be too sanctimonious about the matter because it was advisers from Britain, the European Union and America who rushed over to Ukraine and the other countries of the near east in the 1990s and enjoined on them a process of privatisation. In retrospect, that process was too far, too fast. Major industries were sold at knock-down prices into monopolistic markets. Therefore, the people who bought them were able to exploit market positions and make speedy fortunes. That is particularly problematic at the moment because people are sending their profits out of the country to Cyprus, which is an offshore tax haven. That has created a situation in which economic decisions are politicised and political decisions are subject to economic pressures. There are many reports of corruption in the country. Furthermore, at the moment, Ukraine is vulnerable to the crisis in the eurozone because obviously those countries are part of its major export markets.

Having tried to set out some of the context, I would like to ask the Minister what the Foreign and Commonwealth Office will do about the negotiations for the EU association agreement. Over the past month or so, Ministers have made several statements. I hope that the Minister will tell us that our message is that the trial and sentencing of Mrs Tymoshenko is unacceptable. Is it his intention to halt the negotiations? Is that the position the British Government want to take?

While we are making clear what we find unacceptable, I would also like to ask the Minister what we are doing to strengthen civil society. When I was in Ukraine, I was disappointed to discover that the technical assistance programme has been halved in the past 18 months and that no Minister has found time to visit Ukraine since the general election. I encourage the Minister or his colleagues to visit Ukraine. It is very beautiful, very fascinating and also extremely important.

We need to make it absolutely clear that we expect Ukraine to be a country that respects civil liberties, where the judiciary is independent and the media are free. As well as setting some standards, we also need to offer some support to the Ukrainians.

13:12

[The Minister of State, Foreign and Commonwealth Office (Mr Jeremy Browne)]

Thank you, Mrs Riordan, for giving me the opportunity to wind up this brief but important debate. I am also pleased to have my first chance to speak under your chairmanship.

I congratulate the hon. Member for Bishop Auckland (Helen Goodman) on securing the important debate at a time when there is deep concern in Europe about recent developments in Ukraine. More generally, there is a tendency for many hon. Members to use Westminster Hall to raise constituency issues, which is quite appropriate. However, it is nice to have wider debates that affect our national interest and broader values as a country, and for hon. Members to be able to come to Westminster Hall and discuss such topics.

To assess the implications of the conviction of former Prime Minister Tymoshenko, we need to look at the wider picture and broader erosion of democratic standards in Ukraine during the past 18 months. The hon. Lady said that she regretted that no Minister had recently been to Ukraine. The Minister for Europe would have responded to the debate if he had not been travelling. He is not in Ukraine—I cannot remember which country he is in at the moment—but he travels frequently. I am sure he would welcome the chance to visit Ukraine at the earliest opportunity.

We need to consider the erosion of democratic standards in Ukraine and to answer the following question: why does Ukraine and what happens there matter to us in the United Kingdom? A stable, prosperous and democratic Ukraine that is anchored to European and Euro-Atlantic institutions is in the United Kingdom’s national interest for several reasons.

As the hon. Lady said, first, Ukraine is of immense geo-strategic importance, as it borders four European Union member states and, of course, Russia. We must also consider the size of the Ukrainian market, coupled with its near double-digit gross domestic product growth potential. That might not be the same as having double-digit growth but, if political and other institutions were put on the necessary footing, there is clearly the prospect for Ukraine to become an increasingly economically prosperous country. Obviously, that would offer significant opportunities to UK exporters and investors, as well as being of more immediate benefit to the people of Ukraine. Ukraine is also making a significant contribution to safeguarding international security. For example, it is the only non-NATO partner that regularly contributes to NATO missions.

Finally, Ukraine is a major part of the European energy security jigsaw. It is an important transit route from the east to Europe, with 80% of Russian gas sold to EU customers transiting through Ukraine. Of course, that matter is the nub of the issue, but it is also hugely important to the Ukrainian economy and makes the country more widely important in terms of the energy requirements of countries elsewhere in Europe. Ukraine’s closer integration with the EU offers the surest way of ensuring that not only Ukraine’s long-term interests, but ours and those of our European partners are met. If developments in Ukraine are damaging its prospects for EU integration, it is a matter of concern for the UK and our EU partners, as well as being of more narrow and immediate concern to the people of Ukraine.

Ms Tymoshenko’s conviction and the ongoing cases against a number of her former Ministers and officials give rise to serious concerns about where Ukraine is heading. Those concerns are a symptom of broader problems in Ukraine. We also have worries about blurring divisions between the three branches of power—the judiciary, the legislature and the Executive—and about the erosion of media freedoms and a worsening of the business climate as corruption becomes more prevalent. There is an unhappy cocktail of transgressions of liberalism. It is not simply a matter of considering the trial in isolation or how politicians are treated by the courts. There is a wider issue about civic society and its ability to debate and consider issues through the media and elsewhere, and the overall atmosphere in which business is conducted.

In the case of Ms Tymoshenko, it is worth stressing that it is not for the UK to comment on the guilt or innocence of any individual in a court case. Our concerns, which are supported by the views of international experts, relate to processes and principles. In this case, we are specifically concerned about the political motives behind the prosecution without sound legal grounds of Opposition figures, and the way in which any trials are conducted.

The Danish Helsinki Committee for Human Rights, which has been following several trials including Ms Tymoshenko’s, recorded several serious violations of fundamental legal principles in direct contradiction of common European values. Such a damning conclusion by such an esteemed observer should give us pause for thought and concern. Moreover, as friends of the Ukrainian authorities and as advocates of their EU integration, we have an obligation to tell them when their actions are incompatible with their ambitions. It is regrettable that, so far, our clear and repeated expressions of concern appear to have fallen on deaf ears.

It is worth stressing that point: the Government wish Ukraine well. We wish to see the country develop, play a full part in Europe and have a positive relationship with the European Union on many different bases—culture, commerce, educational collaboration and politics. However, all that depends on Ukraine’s improving its basic civic processes. We are keen to make those points clear to Ukraine. We are frustrated that, given those points were made in a spirit of friendship and in wishing the best for Ukraine, we have not so far managed to make more progress in convincing many people in Ukraine that that is the best way forward for their country.

There can be no doubt about the UK’s position. Only a few weeks ago, on 12 October, my right hon. Friend the Prime Minister told the House that

“the treatment of Miss Tymoshenko…is absolutely disgraceful. The Ukrainians need to know that if they leave the situation as it is, it will severely affect their relationship not only with the UK, but with the European Union and NATO.”—[Official Report, 12 October 2011; Vol. 533, c. 329.]

Ukraine tells us that it wants to join the European Union one day. The UK continues to support that objective. We remain enthusiastic about further enlargement of the EU to the east, if the criteria are right and the circumstances are correct. However, that cannot happen until Ukraine shows that it adheres to the highest democratic standards, including respect for human rights, the rule of law and an independent, transparent and fair judicial process. The conviction of Ms Tymoshenko and the ongoing cases against other former members of the Government call into question Ukraine’s commitment to those values, and could pose a major obstacle to the signature and ratification of the association agreement, and the deep and comprehensive free trade agreement with the EU.

It is right to stress, not least because the EU has been the subject of some debate here in the UK in recent weeks, that those core values, to which member states are required to subscribe as a condition of membership of the EU, offer us and others a powerful lever for raising standards across the continent as a whole and persuading aspirant members of the desirability of advancing in a way that means that they meet the standards that we, in this country, often take for granted.

What exactly has to happen for us to be able to continue to support Ukraine’s integration with the EU? The UK, along with our EU partners, wants to see all Opposition leaders, who have been detained on the basis of flawed trials, freed and able to participate in the political process, including in next year’s parliamentary elections. Ukraine needs to show the political will to move towards joining the European club by embracing—not just in words, but deeds—the EU’s values. The challenge facing the Ukrainian authorities is therefore clear, and we very much want to make that explicit to them.

Arising from this debate and from our wider diplomacy, I hope that there will be no ambiguity about the position of not just the British Government, but the British Parliament and British society. In these debates, I am always struck by how much agreement there is and how much all of us in this House, who may have differences of opinion on domestic political issues and occasionally on international political issues, nevertheless share the core principles and values of democracy and civic society that are embodied in how we practise politics in this country, and are happily embodied in European Union. We wish to see them practised more widely still, including in other European countries that are not—or at least not yet, in some cases—in the European Union.

Some might ask why we should remain so open to Ukraine when we have imposed sanctions on Belarus, for example, for detaining Opposition leaders. The Government’s view is that Ukraine is in a very different category from Belarus. While we are bitterly disappointed by recent developments, Ukraine remains among the most democratic states in the Commonwealth of Independent States. Belarus, by contrast, is one of the most repressive countries not just in Europe, but in the world. We remain convinced that the association agreement and the deep and comprehensive free trade agreement represent the best opportunity to embed democracy in Ukraine, transform its economy and contribute to long-term stability and prosperity in Europe. It is the Government’s strategy to have that engagement—not to regard Ukraine as beyond the pale, but to demonstrate the criteria it needs to fulfil and the progress it needs to make to become a mainstream and successful European country.

We are making those points in concert with our EU partners. The Government’s main objective is to encourage Ukraine to take the steps necessary for European integration, and to speak frankly and critically when necessary while underlining that adhering to the core EU values of democracy, fundamental freedoms and the rule of law is a prerequisite for closer association. Let me emphasise the next point so that there is no mistake either here, or for anybody in Ukraine who chooses to read the transcript of this debate: as far as the UK is concerned, the core principles of democracy, fundamental freedoms and the rule of law are non-negotiable. They are not a point on which we can seek to reach a halfway house with Ukraine. The EU-Ukraine summit in December will be an important opportunity for the Government to make that position clear, and we intend to do so.

We firmly believe that we should proceed with the initialisation of the association agreement, indicating that negotiations have been concluded and locking in almost four years of hard work. However, we should make it clear that formal signature by the EU and member state Governments, followed by ratification by the European and member state Parliaments, will be jeopardised without a satisfactory resolution of politically motivated trials and convictions. I urge the Ukrainian authorities to reflect on that point.

[Helen Goodman]

Why should the association agreement be initialised? One way to proceed would be for us to say, “Well, this has happened; now we are going to put the brakes on”, rather than saying, “Well, we will sign this thing in a month’s time and then there is a whole year for Ukraine to make adjustments”. Why is the Minister not going down that route?

[Mr Browne]

My understanding is that the judgment being made is, given that four years has been spent in trying to bring to a head this body of work, it would make sense to consolidate it at this stage. However, that does not commit us, as a Government or as a country, to proceeding through to ratification either here in Parliament or at European level. There is no commitment with which we are then obliged to follow through, if that initialisation is completed.

This is not about backing Ukraine into a corner; it is about reiterating those core democratic EU values that Ukraine has adopted in part, and which underpin integration with the EU. That is the same process of integration that the Ukrainian authorities tell us is their strategic objective. President Yanukovych came to power promising to make Ukraine

“a modern and dynamic country”—

and he has consistently identified EU integration as his No.1 priority. The majority of his people support him in that ambition. The UK and our EU partners have explained to Ukraine what it needs to do to make integration with the EU a reality. The door remains open. We wish to make it clear to Ukraine that the door remains open and we will not slam it at this stage in proceedings, to answer the hon. Lady’s question further. It is for Ukraine to decide whether it wishes to commit to EU standards and cross the threshold. The Government hope that it will decide to do precisely that.