(4 years, 11 months ago)
Commons ChamberThe gravity school of economics argues that we always trade more with those closest to us, but does my right hon. Friend agree that the history of the past 200 years suggests the opposite? We have taken beef from Argentina, we have had a closer economic relationship with the United States than with any other single country, and we have incredibly close relationships with India, to which we sold cotton, and with Australia and Canada. Does he agree with me—this is the point he is making—that the gravity school of economics is really rather flawed?
I agree with my hon. Friend. It is short-sighted to look at nearby countries only. Our history shows that we have a tradition of trading right across the globe—I am delighted to have the nod of my right hon Friend the Secretary of State for International Trade, who is in her place.
(7 years ago)
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The military hospital we visited is one of the main ones in Dnipro, and it is under tremendous stress. The people living in occupied east Ukraine are struggling to survive, in terms of both basic necessities like healthcare, which the hon. Gentleman mentioned, and things such as pension payments. The Ukrainian Government are attempting still to provide support to those people, but in terribly difficult circumstances, which is contributing to the humanitarian crisis.
The UK gives support to Ukraine; I understand it is in the order of £42 million, from the Foreign and Commonwealth Office and the Department for International Development, but to be honest it is not enough. I hope that we look again at increasing our financial aid, particularly for humanitarian purposes.
We also need to step up the diplomatic effort; the Foreign Secretary is going to Moscow this weekend, and I know that my right hon. Friend the Minister has only recently returned from Moscow. We first need to urge Russia to abide by the terms of the Minsk II agreement; I very much echo what my hon. Friend the Member for Henley (John Howell) said about that. We need to allow proper monitoring by the Organisation for Security and Co-operation in Europe and the removal of all foreign-armed formations, military equipment and mercenaries, as set out in Minsk II.
In particular, I hope my right hon. Friend the Minister will condemn Russia’s recent decision to withdraw from the Joint Centre for Control and Coordination, which is a direct violation of Minsk II and will also increase the risk to the OSCE monitors there. I hope my right hon. Friend will raise that, or will ask the Foreign Secretary to raise it during his visit. As I said, I believe that Ukraine deserves our support, but that support has to be accompanied by further reform. It is a sad truth that, as in most post-Soviet countries, corruption is still endemic in Ukraine, although I recognise that Ukraine is only a 25-year-old state.
My right hon. Friend is right to say that corruption in Ukraine is endemic. However, to give that some context, it is also true that corruption has been a deliberate policy of the Russian state, in order to hollow out the Ukrainian state and to undermine and subvert Ukrainian statehood. Does he agree that that is an important point to understand?
That is a very important point and I absolutely agree with my hon. Friend. He is more knowledgeable than I on Russian hybrid warfare, and this is undoubtedly a component. I am sure he will say a little more about that in his contribution.
While there are still big problems, we should recognise that progress has been made. In the last three or four years, the Ukrainian Government have set up three institutions to tackle corruption—the National Anti-Corruption Bureau of Ukraine, the Specialized Anti-Corruption Prosecutor’s Office and the National Agency for Prevention of Corruption—which have brought something like 319 proceedings.
The Ukrainian Government have also brought in an advanced electronic system for the disclosure of assets, income and expenditure of public officials and politicians, which has led to 910,000 declarations from top officials. I have to say that I have seen the declaration requirements on Ukrainian MPs, and they go considerably further than the declaration requirements on Members of this House. There have also been reforms to public procurement.
However, while progress is being made, there are worrying signs that it is now stalling. While proceedings have been brought against public officials, none have really come to a conclusion; indeed, most are stuck somewhere in the judicial system. An anti-corruption court, which is an essential part of the reform package, has yet to be put in place. We heard on our visit to a non-governmental organisation, Reanimation Package of Reforms, that something like 25% of the recent appointments to the Supreme Court, which has been newly established with a fresh set of judges, failed the integrity test.
There is huge frustration among the people of Ukraine that no one has really been brought to justice, either for the crimes committed during the Maidan or for the massive theft of public assets that has been going on for many years. Most recently, and perhaps most worryingly, Reanimation Package of Reforms has identified the fact that the National Anti-Corruption Bureau has been attacked in Parliament, with attempts to curtail its operation through legislation. Its operations have also been disrupted by the Ukrainian security services, which are probably acting on behalf of the Government.
Those are worrying signs, and we must press the Ukrainian Government to continue with their reform package. That is essential if the Government are to re-establish confidence in Ukraine, which will unlock the investment that will give it an economically viable future.