Repurposing Russian Assets to Rebuild Ukraine
Debate between Chris Bryant and Leo Docherty(10 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Leo Docherty
That legislation, which is a statutory instrument made using the affirmative procedure, gives us options in the future to extend sanctions, up until the point where Russia has paid. It gives us tremendous leverage into the future and has great utility.
We have maximised the impact of our sanctions by co-ordinating with our key international partners, at huge economic cost to Putin’s war machine. Russia’s economy posted a deficit of nearly $50 billion in 2022, the second highest in the post-Soviet era, and with our partners we are choking off Putin’s access to the key technologies he needs on the battlefield.
As I have mentioned, we are the first member of the sanctions coalition to lay legislation, which we did on 19 June, explicitly enabling us to keep sanctions in place until Russia pays for the damage it has caused. That builds on the commitment made by the Prime Minister and G7 leaders that sovereign assets will remain immobilised until Russia pays up. It also goes further, giving us maximum flexibility to act as the situation requires.
Our commitment does not stop there. As criticism of the war grows within Russia, we are introducing a new route for those under sanction to request that their frozen funds be used for Ukrainian reconstruction. Let me clear: there is no negotiation, no quid pro quo and no access for those individuals to their assets while they remain under sanction. However, if they wish to do the right thing and use those funds to help right the wrongs caused by Putin’s invasion, there will be an approved route for them to do so.
Sir Chris Bryant
One sanctioned individuals who said, before he was sanctioned, that his assets could be given to the reconstruction of Ukraine was Roman Abramovich. The sale of Chelsea football club happened last May and I understand there is £2.3 billion sitting in a bank account. I am mystified as to why that money has not yet been handed over to the foundation. I have exchanged texts with the person who set it up. He said he is ready and he does not understand why he is not getting the money—he has not even been told why he is not getting the money.
Leo Docherty
That is a non-governmental body. There are ongoing discussions with regard to the focus and the use of those funds—whether it be in Ukraine or outside Ukraine to benefit Ukrainians—which has drawn out the process, but we are seeking to expedite the matter at pace.
Sir Chris Bryant
I am grateful to the Minister for giving way again, but discussions between whom? If Government Ministers are party to those discussions, what is the concern that people still have?
Leo Docherty
It is not a Government discussion; it is a discussion within the new organisation that will disburse and utilise those funds. We will keep colleagues updated as and when that situation is resolved.
Sir Chris Bryant
As I understand it, the Minister is saying that the members of the foundation itself are rowing with each other about to how to proceed, but surely that would not prevent the money being handed over by the Government.
Leo Docherty
The hon. Member should not put words in my mouth. Details remain outstanding. A discussion is under way within the institution with regard to the focus and the utility of these funds. As and when that is clarified, I am sure that we will be able to keep colleagues updated. I remain grateful to him for his interest.
Leo Docherty
Our Canadian friends have legislated, but they have not yet found a legally watertight route to seizing those assets. The right hon. Lady speaks about other concepts that are of interest, and we will certainly consider them as we move forward.
Sir Chris Bryant
I am very grateful to the Minister. I am sorry, but what is the legal impediment, to his mind?
Leo Docherty
The hon. Gentleman knows a great deal about international law, so he will know that ideas such as these will be tested internationally and that if they are not watertight, they have no utility. It is not legally straightforward; this is entirely new ground and therefore it requires a robust legal framework. I think he would probably admit that it is unclear that one exists as yet. However, as ideas come forward, we are interested in testing them.
We are steadfast in our commitment to ensuring Ukrainian economic stability. We have committed to providing approximately £4.2 billion of fiscal support to Ukraine and, along with our G7 partners, we are committed to helping it to emerge from the war with a modernised economy that should be entirely resilient to Russian threats.
Let me conclude by saying that the recovery conference last week, which I referred to at the start, marked a further milestone in support for Ukraine and in ensuring that Russia pays for its actions. With our partners, we will keep up the pressure, while standing by Ukraine’s side until it wins and rebuilds.
Russia’s Grand Strategy
Debate between Chris Bryant and Leo Docherty(1 year, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Leo Docherty)
I am grateful to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) for securing this important debate. I am also grateful for the other knowledgeable contributions from hon. and right hon. Members, and I will try to cover as many of their points as I can.
I would like to start, however, by offering my deepest condolences to the families of Ukraine’s Interior Minister, Denys Monastyrsky, and his team of civilians who were killed in the tragic helicopter crash in Ukraine yesterday. He was a true friend of the United Kingdom and a true patriot of Ukraine, and we are ready to support Ukraine in whatever way we can.
My hon. Friend the Member for Harwich and North Essex put forward a strident case in outlining Putin’s grand strategy and, in his view, the lack of one on the UK’s side. He posed some interesting questions with regard to the integrated review refresh. He questioned the Indo-Pacific tilt and the validity of the AUKUS agreement, and he called for strong land forces, which is something I certainly agree with. He pointed out that we need to increase the tempo of our support to Ukraine; of course, we support that. He also pointed out that Putin’s calculation is one of time—his belief is that his ability to suffer will outlast the patience of western allies. I agree; that is, indeed, Putin’s calculation. My hon. Friend suggested that we were being too timid and too slow in our support. I refute that, because I think our actions over the last year, especially on the provision of lethal aid, have shown that we have led the way, and others have followed.
In terms of my hon. Friend’s central point, I acknowledge the fact that, while Putin has had a grand strategy, the last year has shown that it is, in simple terms, failing. Our response has shown that, when we put our mind to it, we can succeed. Our strategy over the last year is one of success. If we measure the success of strategy as whether or not we can deliver our policy, Putin’s failure to deliver his own policy in Ukraine has shown the failure of his strategy, and our success in supporting our Ukrainian friends has shown the success of our collective strategy.
Our response is built on four pillars. The first is a recognition that it is about hard power, and that is why we led the way in delivering the NLAW, which was a tactical weapon that took on strategic consequence. Just over a year later, that has led to us providing the Challenger 2 tanks, which hopefully will open the door for others. We recognise that it is about the provision of hard power.
We also recognise that alliance is hugely important in this. Russia has a very long border but is very short of friends. If we look at the collection of nations that are supporting our heroic Ukrainian friends, we see a determined, resolute and hugely capable group of countries that are providing an awesome amount of support. Collectively, in terms of their military power, GDP and so on, they represent a very important and powerful alliance.
The third pillar is resolve. I have mentioned that Putin will be testing our patience this year and thereafter, and we must be confident that our capacity to remain committed to our Ukrainian friends can outlast Putin’s judgment about his ability to force his people to suffer.
Fourthly, our strategy takes us into other domains. My hon. Friend the Member for Harwich and North Essex did not mention energy, but our collective response in the west and globally in fighting back against Putin’s weaponisation of energy supply has been immensely effective. No one would have thought several years ago that the Germans would have weaned themselves off Russian supply within a short space of months, at huge cost and inconvenience. It has been remarkable. The pan-European and global response to the weaponisation by Putin of his energy supply has been heartening and terrific. Of course, we must keep that effort up, but we should be very proud of our response, and that is because of the leadership of western nations. I am very grateful for my hon. Friend’s remarks.
I turn to the comments of other Members. The hon. Member for Rhondda (Sir Chris Bryant) posed some good questions about our reconstruction effort. He will know that we are hosting a conference in June this year to focus nations on that and hopefully bring a flow of capital to Ukraine, to help its reconstruction. He asked some good questions about reparations. Of course, we are exploring all options. There is an army of lawyers looking at all this. We are seeking to be creative. He posed some interesting technical questions. All of this is under consideration, and we will update the House as and when we can.
Leo Docherty
We will keep the hon. Gentleman up to date.
The Chairman of the Defence Committee, my right hon. Friend the Member for Bournemouth East (Mr Ellwood), put this matter in a cogent, historical context, for which I was most grateful, but we should be confident that our resolve will outlast Putin’s determination to make his own people suffer. He pointed out that there is a global contest between authoritarian regimes, and those who value democracy and open economies, and that is particularly important in terms of the role of China. He made a powerful call for resolve. I think we are showing that but of course we must be ever vigilant. We can take nothing for granted.
The hon. Member for Bradford South (Judith Cummins) made a powerful reflection on her visit to Kharkiv at the end of last year. She mentioned Putin’s desperation as illustrated by his barbaric assault on the critical national infrastructure of that country, and I was grateful for her remarks.
My hon. Friend the Member for Henley (John Howell) referred to his important work in the Council of Europe. We continue to be grateful for his work in that forum. He said we must keep our eyes open, and we certainly agree, because the price of freedom is eternal vigilance. We will keep our eyes open and I commend his remarks.
The hon. Member for Tiverton and Honiton (Richard Foord) made an interesting reference to Palmerston’s approach in the 1850s. They knew a lot about UK-Russian relations in the 1850s. He also referred to Churchill’s famous reference to Russia, but there is no actual riddle these days: we know exactly what Putin is. He is a bloodstained tyrant bent on imperial conquest, so there is no mystery.
My right hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke), the chair of the NATO Parliamentary Assembly delegation, urged us to guard against hubris, which I thought was an eloquent way of calling for ongoing resolve. He pointed out the importance of NATO’s cohesion and continued determination, for which I was grateful. He reflected interestingly on his meeting, while a Minister, with the Ukrainian forces. That ongoing training had its genesis in Operation Orbital. It has been running since 2015 and is something of which we are immensely proud. I am grateful to him for bringing that to the House’s attention.
My right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) referred to his visit to Ukraine and the admirable work of Siobhan’s Trust and the magnificent David Fox-Pitt clad in his Ukrainian kilt. I hope to see my right hon. Friend modelling that at some stage. He used that example to give us a powerful insight into the horrendous civilian cost of Putin’s barbaric war. That is why we are proud to have given some £220 million-plus purely in humanitarian support and we will continue to do all that we can in the humanitarian sector. He said that the plea from those he met was, “Please don’t forget us.” I can assure him that the UK Government absolutely will not forget them. We will continue to do all we can, not just in the humanitarian sector but in long-term reconstruction. That is the point of June’s conference.
My right hon. Friend the Member for Chelmsford (Vicky Ford) pointed out Putin’s fading support globally, and the fact that some of the nations that have been aligned with him now question the validity or utility of being partnered with a failing nation and someone who is losing. I thought that was useful. She talked about his outrageous weaponisation of global food supply, which we are seeking to counter through the Black sea grain initiative. She also made an important reference to the malign role of the Wagner Group, which concerns us all. I am grateful for her comments.
Oral Answers to Questions
Debate between Chris Bryant and Leo Docherty(1 year, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Leo Docherty
The hon. Member is right to point out the amazing scale of the issue, with more than 140,000 Ukrainians having received visas and living in the UK, but I will take away his helpful suggestion and we will see whether that is in place.
Chris Bryant (Rhondda) (Lab)
Whatever Americans vote for today, I hope they stick with supporting Ukraine over the next few months. May I ask a question I have asked the Minister before—so I hope he knows the answer by now—about the Abramovich money? Chelsea was sold for £3.5 billion many months ago. Has that money yet got to Ukraine, and if not, why not?
Leo Docherty
I am very pleased to be able to provide an answer. The money is still frozen in a UK bank account. The administrative work is being done and a licence is being applied for, but we hope it is on the start of its journey to Ukraine to help the people where they need help.