Ukraine: Reconstruction

Lord Campbell-Savours Excerpts

Thursday 25th January 2024 Lords Chamber

[Lord Campbell-Savours (Lab) [V]]

Before we become overzealous over the seizure of assets, have we considered the prospect of reciprocal action by Russia against UK assets in Russia? How can we on the one hand confiscate assets held by Russia, which is a power normally exercised in wartime, while on the other hand insist that we are not at war with Russia? Is it not more realistic to claim on income streams from frozen assets, as has already been suggested, rather than on the principal capital involved?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I disagree on several points here. What is very clear, and I think the majority of your Lordships will agree with me, is that Russia is accountable. The freezing of these assets has had a net benefit. The majority of your Lordships and those in the other place fully support the Government in their position, which is to ensure that we immobilise Russia’s ability to finance its war effort. We have taken action to ensure that assets worth more than $400 billion cannot be mobilised. Not taking the steps we have taken would have allowed that $400 billion to be used differently. We need to ensure that we focus our actions. As I said before, everything we are doing, which is why we are being very careful in this, is in association with our G7 partners. We are working with other countries on the circumvention of the sanctions we have imposed and are ensuring that the actions we take are legally underpinned.