Repurposing Russian Assets to Rebuild Ukraine

Alexander Stafford Excerpts

Tuesday 27th June 2023 Commons Chamber

[Mr David Lammy (Tottenham) (Lab)]

I beg to move,

That this House condemns Russia’s illegal invasion of Ukraine; stands in solidarity with Ukrainians in their resistance to Russia’s invasion of their sovereign state; recognises the enormous damage that Russia’s invasion has caused to Ukraine’s infrastructure, economy and institutions; commends the recent commitments made by the Government to support Ukraine’s recovery during the Ukraine Recovery Conference 2023; and calls on the Government to present a Bill before this House within 90 days to allow frozen Russian state assets held in the UK to be repurposed for Ukraine’s recovery.

Some of the most horrifying images from the start of the Ukraine war came out of Bucha, a city just outside Kyiv. Bodies of innocent Ukrainians were strewn across the street, some with their hands tied behind their backs, and dozens were buried in mass graves beside burned-out tanks representing Russian aggression. Today, much of the damage wreaked on Bucha has been repaired. Walking down its streets, it is almost impossible to imagine the atrocities committed just one year ago.

Rebuilding has become a motif of Ukrainian resistance. By April, Ukraine had cleared debris from 2,100 km of road, rebuilt 41 of the 330 destroyed bridges and renewed 900 railway points. But as Putin’s barbaric war continues, there remains so much more to do.

Putin’s illegal invasion of Ukraine began not last year but in 2014. However, for the past 16 months since the start of the full-scale invasion, Ukrainians have been continually bombarded from the land, the sea and the air by a dictator determined to destroy everything that their country represents: its freedom, its vibrancy—which I have seen on two occasions—and its spirit. Yet in the face of Putin’s barbarism, Ukrainians have defended their country with courage and a fierce determination to defend the values that they cherish. Ukrainians have shown themselves to be free and proud people who refuse to be controlled or subdued.

Since the invasion began we have seen that Putin will seek to destroy that which he cannot control. We should be under no illusion about the sheer scale of the destruction that Putin’s war has brought to Ukraine, nor about the high price paid by ordinary Ukrainians. The statistics speak for themselves. The United Nations estimates that almost 10,000 civilians have been killed. Millions more have been displaced from their homes. Over 150,000 buildings have been destroyed or damaged, including homes, schools, hospitals and many businesses. Tens of thousands of kilometres of road have been rendered useless.

Landmines and munitions are strewn across the country. Vast swathes of farmland have been ruined, forests have been burned down and national parks have been destroyed. Millions of Ukrainians have been forced into poverty, and parts of the country are facing a humanitarian crisis. In total, the World Bank estimates that up to $600 billion will be needed to fund Ukraine’s recovery and construction. That is around three times the size of Ukraine’s GDP, and the figure is rising by the day.

Beyond the physical damage, we must remember the profound psychological impact of the invasion on the Ukrainian people. A people who were full of optimism for the future are now having to come to terms with the loss of loved ones and the destruction of their homes and livelihoods. Where once there was hope there is now uncertainty and fear, with the war making it impossible to plan for the future. Although Putin has succeeded in bringing about destruction, Ukrainians have resisted through a sense of strength, defiance, innovation and ingenuity. What they have achieved, frankly, is astounding.

In the early part of the invasion, Putin tried everything he could to destroy Ukraine’s energy sector. In raid after raid, energy resources were the targets of bombs. At one point, almost half the power generation was destroyed. Yet only months later, Ukraine’s electricity grid is once again fully operational, and even exporting power to Europe. Streets that were reduced the craters have been rebuilt. Bridges that only months ago were destroyed are standing once more. Homes that were reduced to rubble are now rising again. Across Ukraine, people are doing whatever they can to get on with their lives and rebuild their broken livelihoods.

However, with all the ingenuity and strength in the world, Ukraine cannot take on the job of national reconstruction on its own, nor should it be expected to do so. Our greatest strength in support of Ukraine against Russia is our unity, as I said yesterday. Labour will continue to stand united with the Government, our allies and our partners until Ukraine wins. Likewise, we will stand with Ukraine as it begins the long and difficult process of rebuilding its proud country and forging the bright and ambitious future that Ukrainians deserve.

The Ukrainian people deserve justice for the suffering they have endured and they deserve to see Russia held accountable for its actions. Ukrainians have already paid the ultimate price for Putin’s imperialism and they deserve to rebuild their country without having to bear the burden of the cost. That is why the Labour party believes Russia must pay for Ukraine’s recovery. It is not just a matter of justice; it is also a matter of deterrence. If Russia is not held accountable for its actions it will only embolden it against others, and other aggressors will be emboldened. The message will be sent that the international community is not serious about preventing future wars. That is why it is vital we show Russia that there are consequences for aggression. We must make it clear that the world will not tolerate its actions.

[Alexander Stafford (Rother Valley) (Con)]

The right hon. Gentleman is making a very powerful point. I sympathise with what he is saying, but I am also if not concerned then questioning about some of his calls. The way I hear it is that he is calling for reparations. After the first world war, huge reparations were put on Germany and we know where that ended up. The German populace felt that they could not cope with the reparations, and that lead to the second world war. The right hon. Gentleman is calling for Russia to pay. Can we make sure that that does not affect the people of Russia, so they do not create another conflict?

[Mr Lammy]

This is a debate about repurposing. The hon. Gentleman might remember that after the first Gulf war, oil revenues were used to rebuild much of Kuwait. That is the central point that this debate is about. There is a consensus globally on the issue, with the Canadians, the United Nations and US Senators making progress in this regard. The debate is about repurposing. We have to be very careful to get the balance right. It is clear that we cannot leave Ukraine to do this on its own, so the question is: do we have the will to make this happen?