Oral Answers to Questions

Charles Hendry Excerpts

Tuesday 8th April 2014 Commons Chamber

[Mr Swire]

We are extremely concerned about the situation in Venezuela. In my statement of 26 March, I urged all sides to take steps to avoid confrontation, reduce tensions and create the right conditions for genuine dialogue. A commission of Foreign Ministers from the Union of South American Nations group of countries is on its second visit to Venezuela as we speak. They will support and advise on dialogue between the parties. We hope that that will play a positive role in helping to avoid violence and in promoting reconciliation in Venezuela.

[Charles Hendry (Wealden) (Con)]

What discussions has the Foreign Secretary had about the situation in Ukraine with his counterparts in other countries in the former Soviet Union but outside the European Union, such as Azerbaijan and Kazakhstan, to understand their perspectives and concerns as he develops his thinking on that area?

[Mr Hague]

We have had many discussions at many different levels with those countries. I think it was significant that, when it came to the vote at the UN General Assembly on what has happened in Crimea, only 11 countries in the world supported the Russian position. Even many of the countries of the Commonwealth of Independent States were not willing to support the Russian position. That is an illustration of Russia’s diplomatic isolation on the issue.

Nagorno-Karabakh and Azerbaijan

Charles Hendry Excerpts

Tuesday 11th February 2014 Commons Chamber

[Stephen Pound]

The hon. Gentleman’s record on addressing the persecution of Christians is second to none, and I hope that his words reverberate and are heard beyond this Chamber.

After the Caucasus bureau voted for Nagorno-Karabakh being allocated to Armenia, there was an intervention by the Communist party leader in Azerbaijan, Nariman Narimanov, who reversed that decision. He was guided in this by the people’s commissar for nationalities—better known to us as Joseph Stalin.

Things came to a head in 1985, when Gorbachev was elected in the Soviet Union. In the ensuing feeling of perestroika—the slight lifting of the yoke—there were demonstrations in Yerevan and Baku, which were very much about determination of what was then called an enclave between the two countries. In February 1988, there were skirmishes near Askeran in Artsakh, on the Stepanakert-Agdam road. Then there was what is still—rightly—called the pogram in Sumgait, in which many Armenians were killed in the most horrendous circumstances. There were riots for three days and then the Soviet Army intervened. As if that were not enough, in December 1988 there was an enormous earthquake, which killed 25,000 people in what was then called Leninakan and is now Gyumri.

That period saw increasing tension along the borders, including in January 1990 an air and rail blockade by the Azerbaijan Soviet Socialist Republic, another pogrom, and finally Gorbachev declaring a state of emergency. There was fighting throughout the Azeri cities, and then, in spring 1991, Operation Ring, in which Ayas Mutalibov—the Azerbaijani leader, who was seen at the time as one of the new wave of non-communist leaders that included Yeltsin, who had just been elected in Russia, and Levon Ter-Petrossian in Armenia—launched a military offensive against Armenians in the Shahumyan area, with a view to ethnically cleansing the area. That is when the diaspora, personified in some ways by Monte Melkonian, who was one of the great leaders, realised that it had to support ethnic Armenians in their homeland.

Gorbachev resigned in December 1991. That allowed the old Soviet Union to collapse in the south Caucasus region. Azerbaijan voted to rescind the autonomous oblast status of Nagorno-Karabakh. The Armenians did the same and declared independence on 6 January 1992.

Then the war started, and it was a war. There was a complete imbalance between the two armies. Together, Nagorno-Karabakh and Armenia had 170 tanks and 360 armoured personnel carriers, but no fighter aircraft. The Azeris had 300 tanks, the same number of APCs and, crucially, 170 fighter aircraft. They were helicopter gunships—the old Mil Mi-24s that were left over from the Russian retreat. Throughout this sad and sorry story, almost all the weapons, armaments, ordnance and artillery pieces were left by the retreating Russians. It was like there was a vast warehouse of weaponry throughout the south Caucasus—an enormous bonfire waiting for the spark.

There were appalling scenes throughout the war. There were accusations of atrocities on both sides, many of which have been investigated. In May 1992, the war took a crucial turn when the Armenians captured the headland or redoubt of the Azerbaijan army in the area that most people now know as Shushi, but which at that time was called Shusha. At that time, much of the fighting was being done by Chechens, who were fighting for jihad. Their leader, Shamil Basayev, referred to the soldiers of the so-called Dashnak battalion, which is also known as the Dashnaktsutyun or the Armenian Revolutionary Federation, as the only people who had ever defeated him.

I could describe the war further, but that is not really the point of this debate. Towards the end of the war, in January 1994, even by the horrific standards of modern warfare, things had got to an almost unbearably painful phase. Azerbaijan extended the call-up to boys of 16. The war entered what objective, independent observers call the “human wave” phase. Andrei Sakharov, who is often quoted in this Chamber, said at the time:

“For Azerbaijan the issue of Karabakh is a matter of ambition, for the Armenians of Karabakh, it is a matter of life or death”.

The peace process started. In 1994, it was recognised that it was, in effect, a frozen conflict. The Minsk group, with its three co-chairs, who are currently Igor Popov from the Russian Federation, Jacques Faure from France and James Warlick of the USA, is working as hard as it can to move matters forward. I hope and believe that it is doing so with the support, knowledge and understanding of Her Majesty’s Government. The co-chairs visited Baku and Yerevan just this month.

However, matters along the line of contact are not good. Twenty soldiers were killed along the ceasefire line in 2013, despite the existence of the ceasefire. There were nearly 200 ceasefire violations between 2 and 8 February of this year. Often, the violations involve people firing across the border, including snipers, but there are also more violent incidents. The line of contact is porous and is coming under increased pressure.

People will be asking themselves the question, as I would be if I were listening to this debate, “What can we do?” Every Member of Parliament is inundated by letters saying, “Please put pressure on country X or nation Y and do something about it.” What can we do in this case? I think that we have a crucial role to play. There is not a massive amount of trade between the United Kingdom and Armenia. Fewer than 10 UK firms are active in Armenia. We gave Armenia £882,000 in aid last year. I pay credit to our remarkable joint ambassadors in Yerevan, Kathy Leach and Jonathan Aves, who work extraordinarily hard to progress British trade interests in the area. However, we could do much more. By contrast, Azerbaijan was given £1,335,000 in aid over the same period, and we have very close trade links. The United Kingdom is actually the 15th largest trade partner of Azerbaijan, and the major role of BP in oil extraction, refining and marketing cannot be underestimated.

[Charles Hendry (Wealden) (Con)]

The hon. Gentleman will be aware that I am the Prime Minister’s trade envoy to Azerbaijan. Our trading links go much further than that, and indeed, we are by far the biggest investor in Azerbaijan through BP and other companies in that sector. The country is increasingly important to the British economy, and I hope he will reflect that in his comments.

[Stephen Pound]

I am grateful, and I place on record my appreciation for the hon. Gentleman and the work he is undertaking in that area. To show how important that link is, when President Ilham Aliyev made critical comments fairly recently—I think it was on 17 October 2012—in connection with British Petroleum’s output from the Azeri–Chirag–Guneshli field, our ambassador to Azerbaijan, Peter Bateman, said:

“I shall be calling on BP in London next week to find out what more, if anything, we can do to help”.

That shows a remarkable degree of association with the British Government, and of involvement at a very high level. Indeed, the FCO was vital in negotiating what was widely called the “contract of the century”, which was signed in Azerbaijan in 1994. Co-operation was so close that when we first posted ambassadorial staff to the Republic of Azerbaijan they were located in BP’s offices in Baku. The relationship continues and prospers. In fact, the Foreign Secretary attended the signing ceremony for the final investment decision on the Shah Deniz 2 project in Baku.

UK Trade & Investment

Charles Hendry Excerpts

Tuesday 19th March 2013 Westminster Hall

[Charles Hendry (Wealden) (Con)]

I put on record my interests as the Prime Minister’s trade envoy to Azerbaijan, Kazakhstan and Turkmenistan, and as the chairman of the advisory board of the Russo-British chamber of commerce.

I congratulate my hon. Friend the Member for Enfield North (Nick de Bois) on securing the debate. He was absolutely right to say that our future recovery lies not within the eurozone, but outside it. We must focus much more on countries where there are tremendous opportunities that we are often missing. From my experience of visiting them as a Minister and subsequently, such countries want to trade with Britain. The door is open, and the question we are most often asked is, “Why don’t we see more of you?” I am delighted at the work being done by the Foreign Office and UKTI teams to try to ensure that we are in a strong position to do that.

There are very exciting developments in Russia, with which our trade has doubled in the past three years. It has moved from being our 19th biggest trading partner to being as large as our 11th biggest, which is a huge improvement in activity. We want such an approach to be replicated in many other countries.

I welcome the approach taken by the Minister for Trade and Investment, my noble Friend Lord Green, towards developing links with chambers of commerce. They are well established in their countries, where they are well known to their Governments, and they understand those countries well. It is much better to develop those relations than to put in place a new structure.

Chambers of commerce are also well positioned to ensure that we go beyond the few cities that trade delegations usually visit. In Russia, there will be delegations to Moscow and St Petersburg, but there are exciting new opportunities and a real enthusiasm for doing business in Kazan in Tatarstan, and chambers of commerce should be our natural allies in making things happen.

At the end of last year, the Prime Minister appointed seven of us as trade envoys to some of the fast-developing markets, which are exactly the sort of markets that my hon. Friend the Member for Enfield North spoke about. We should recognise the extraordinary personal contribution that the Prime Minister is making in that area, with the success of his trade missions and his determination to get out there and win opportunities for British companies right around the world.

The role of trade envoys is to give an extra level of support, working alongside the FCO and UKTI. It is to focus purely on trade, not politics or diplomacy, and on taking that contact forward to a deeper and broader level of engagement. In the three countries in which I work, there are tens of billions of pounds of British investment in the oil and gas sector, and companies such as Shell, BP and BG have enormous departments that focus on improving such links. My focus therefore needs to be not only on working with them, but on seeing how to secure opportunities for the supply chain and service companies, of which Britain has some of the finest in the world.

[Jim Shannon]

The effectiveness of businesses is measured by export contracts. Does the hon. Gentleman think that we should do more for our skills and people skills in construction, for instance, so that people are able to go overseas to help companies to build?

[Charles Hendry]

The hon. Gentleman is absolutely right that we have world-class skills in that sector. I find that people saw what happened in Britain in 2012, when we delivered the most successful Olympic games ever, and know that those involved often have a tremendous amount to offer to countries with big ambitions in such areas.

The Asian games are in Ashgabat in 2017, the European games are in Baku in 2015 and the Expo is in Astana in 2017. In all those areas, we are introducing British architects, engineers and construction companies—working alongside other partners—to ensure that they have the chance to compete. The issue is not only about the big companies, because my hon. Friend the Member for Enfield North is completely right that it is also about SMEs. On the recent mission that I undertook to Turkmenistan, the majority of companies were SMEs with expertise in the sports sector that saw how they could work alongside others and realise the potential of the 2017 games.

We also have opportunities to attract more investment into the United Kingdom. These countries all have significant sovereign wealth funds. We can highlight the opportunities for them to invest in British businesses and infrastructure, and they should become our natural partners as we take that forward.

I believe that what really makes a difference is the relationship between trade envoys, and the Foreign Office and UKTI. We have excellent missions and ambassadors in those countries, but we also have outstanding UKTI representatives who are focused on understanding those markets and realising the opportunities. That means that we host good round tables to bring together a range of companies that are interested in investing here. For companies that are looking for where to export next, but are anxious about going to markets that are distant and new, we can help to make the process much easier.

I very much welcome the debate. Above all, the key message is that countries throughout the world that want to trade with Britain need to see us more. I am delighted that we have such an energetic Minister in post, because I know that he is tireless in taking that forward.