Frozen Russian Assets: Ukraine

Ben Spencer Excerpts

Monday 6th January 2025 Commons Chamber

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

Debates such as this, about the horrors now happening in Ukraine, are always very important and very difficult to speak in. I very much appreciated listening to some of the harrowing stories, to remind myself just what the Ukrainians are experiencing, but also why all of us must push back Putin’s war machine.

I am most proud of the leadership that our country has shown over the past few years in the international response to support the Ukrainians to stand up against Putin. A key part of that was bringing together the international community to multilaterally, not unilaterally, support the Ukrainians in their plight. Early in this conflict we saw the weaponisation of oil and gas prices. We saw, and continue to see, hybrid warfare, which has been going on for some time. I very much supported, at every stage, the full-fat embargo of Russian oil and gas. Indeed, this House strongly supported the sanctions, which have been an important part of our support for the Ukrainians.

As tempting as this motion is—and it is very tempting when we read it—I must say that, like Members on both sides of the House, I am cautious and have some concerns and reservations about it. It is important to consider the impact on the international financial order and the rule of law. What differentiates us from Putin and the Russian state is that we do consider and debate this—we have this place where we can consider the rules-based order. Putin thinks that makes us weak, but he is wrong; it makes us strong, and it is what we stand for and what we believe in.

If we are to look at seizing assets, there are two important considerations. First, this focuses on state assets, as opposed to those of individuals and companies, as there is currently no judicial process for individuals and companies who have had their assets frozen, and to go ahead with seizing those assets is a much bigger step. Members have mentioned individuals and companies as well as the state, but the focus has to be specifically on Russian state assets, for which the legal framework is stronger.

Secondly, as with how we led from the beginning of the conflict, there has to be a multilateral approach. This has to be linked through the G7 and our partners in Europe. It has to be done together in unison, and we have a history of doing that. I say to the Minister that I am very proud of how we have done that. If we are to do this, we must do it multilaterally.

We also need to look at these assets being used for military use, as opposed to just general economic support. My understanding is that the interest money that has now been freed up has been restricted from use for military interventions, and this also needs to be considered as part of the process.

Finally, we also need to ensure that our current sanctions are effective. Just before Christmas I mentioned my concerns about the oil and gas embargo, particularly the idea that crude oil derivatives could be finding their way into the UK economy despite the embargo. I am grateful to the Minister for responding to some of my specific questions on that, but I hope he will look carefully at the effectiveness of the proofs of origin under the rules of origin, particularly when it comes to petrochemical derivatives such as plastics and other products that can be manufactured through the use of Russian oil and gas. We must ensure that, in our economy, our oil and gas embargo of Russia is as effective as possible before we even start looking at the next measures to take.