Illicit Finance: War in Ukraine

Debate between Dominic Raab and Anne-Marie Trevelyan

Thursday 13th July 2023 Commons Chamber

[The Minister of State, Foreign, Commonwealth and Development Office (Anne-Marie Trevelyan)]

I am grateful to my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) and the Backbench Business Committee for securing the debate. I also thank all Members for their insightful contributions and questions and all contributors to the Foreign Affairs Committee’s inquiry. I understand that the Committee’s members are travelling and therefore not able to be with us today. My hon. Friend the Minister for Europe would have been delighted to take part in the debate, as it is his brief, but he is unavailable. It is my pleasure to respond on behalf of the Government.

When Putin launched this awful, illegal war, he gambled that our resolve would falter, but he was wrong then, and he is wrong now. Russia’s military is failing on the battlefield, with the counter-offensive making increasing progress—Ukraine has gained more ground in the last month than Russia has in the last year. Russia’s economy is failing at home, as we tighten the stranglehold of sanctions. The image of the NATO leaders standing shoulder to shoulder with President Zelensky in Vilnius yesterday sent a powerful message to the world: we will stand with Ukraine for as long as it takes.

When the Prime Minister met President Zelensky at NATO yesterday, he paid tribute to the courage and bravery of Ukraine’s armed forces on the frontlines, and they discussed the increasing progress of the counter-offensive. The Prime Minster outlined a new package of UK support for Ukraine, including thousands of additional rounds of Challenger 2 ammunition, more than 70 combat and logistics vehicles and a £50 million support package for equipment repair, as well as the establishment of a new military rehabilitation centre.

I am incredibly proud of the UK’s role at the forefront of international support for Ukraine. In this debate and in the Prime Minister’s statement earlier today, Members have reflected the extraordinary sense of purpose we have as UK citizens in support of the Ukrainians and their incredible bravery. Our military, humanitarian and economic support to Ukraine so far amounts to over £9.3 billion. We gave £2.3 billion in military aid last year, second only to the United States, and we will match that this year. The UK was the first country in the world to train Ukrainian troops, the first in Europe to provide lethal weapons, the first to commit tanks and the first to provide long-range missiles, and we are at the forefront of a coalition to train and equip the Ukrainian air force.

Our humanitarian assistance, delivered through the Government of Ukraine, the UN, non-governmental organisations and the International Committee of the Red Cross, is saving lives and helping to protect the most vulnerable, including women and children, the elderly and those with disabilities. The UK has committed £347 million of humanitarian assistance since February 2022, and we have helped to reach over 15.8 million people in need during this crisis. Our economic support includes over £1.7 billion in fiscal support to Ukraine, including approximately £1.65 billion in guarantees for World Bank and European Bank for Reconstruction and Development lending and £74 million in direct budgetary assistance.

The international community is united in supporting Ukraine, and our diplomatic response has been broad and comprehensive. We continue to work to strengthen NATO. It is in everyone’s interest for Sweden to join; its accession makes us all safer. Ukraine’s future place is in NATO, and it has already taken steps toward membership.

[Dominic Raab (Esher and Walton) (Con)]

The Government have done an excellent job and shown real leadership on Ukraine. My right hon. Friend mentioned Sweden joining NATO. As important as that is, given its assets—submarines and fighter pilots—it is also telling that the UK and others have persuaded Turkey to remove its veto, coaxing it back into the fold. The truth is that to outlast Putin, we do not just need to rely on the support we already have; we have to grow it, and that was a good example of a big win for UK diplomacy and the wider NATO alliance.

[Anne-Marie Trevelyan]

My right hon. Friend is absolutely right. His efforts over a number of years while serving in the Government have helped to build that coalition of support and that confidence to enable Sweden to get to this point. Indeed, Finland is now a member of NATO.

Ukraine’s future place will also be in NATO, and the steps towards membership are now taking place. When allies agree and conditions are met, we will be in a position to extend a formal invitation to Ukraine. As the hon. Member for Hornsey and Wood Green (Catherine West) pointed out, and as the Prime Minister highlighted today—we can read the full detail in the Vilnius communiqué —the requirement for a membership action plan, for instance, has been dispensed with, which can speed up the process.

Members raised the question of Georgia’s potential accession to NATO. The UK supports Georgia joining NATO, as agreed at the Bucharest summit in 2008. We are taking steps with allies to develop the capabilities of Georgia and to prepare it for membership through a comprehensive support package, in concert with other NATO allies.

I turn to the issue of sanctions and to the Foreign Affairs Committee’s report on illicit finance. I thank all contributors to the Committee’s report, which is very thorough. We have co-ordinated sanctions with our international allies to impose a serious cost on Putin for his imperial ambitions. More than 60% of Putin’s war chest of foreign reserves has been immobilised, worth £275 billion. Our own sanctions package is the largest and most severe we have ever imposed on a major economy, and it is undermining Russia’s war effort.

Following her question about the cocktail of crypto- currencies, I can confirm to the hon. Member for Hornsey and Wood Green that we are actively monitoring the use of cryptoassets to detect potential instances of sanctions evasion. The use of cryptoassets to circumvent economic sanctions is a criminal offence under the Sanctions and Anti-Money Laundering Act 2018. As she pointed out, they are complex instruments, and the teams work hard on that. That is already under close review.

Reacting quickly to the invasion of Ukraine, we enacted the Economic Crime (Transparency and Enforcement) Act 2022, sanctioning over 1,600 individuals and entities and freezing £18 billion of Russian assets. We will continue to bear down on kleptocrats, criminals and terrorists who abuse our open economy through our new Economic Crime and Corporate Transparency Bill, and we will ensure that dirty money has nowhere to hide at home or overseas.

Official Development Assistance

Debate between Dominic Raab and Anne-Marie Trevelyan

Thursday 26th November 2020 Commons Chamber

[Dominic Raab]

I have to say to the hon. Lady, whom I respect and admire greatly, that we have not closed DFID, but merged the Foreign Office and DFID, precisely to give greater impact given the financial pressures we now face. She asked about tied aid; we are not suggesting any reversion to tied aid, which comes from a bygone era and is not something that I or this Government support. Nor have we tried to abolish the Select Committee; I have made it clear every time I have been asked, such matters are for the House to decide. Finally, she asked about when we will publish the GNI review detailed breakdown. Obviously, we are committed to full transparency, and the statistics on international development are published next year. They will be provided through a detailed breakdown of all the ODA allocations in 2020.

[Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con) [V]]

I thank the Foreign Secretary for his statement. The Chancellor’s statement yesterday setting out plans to amend the International Development (Official Development Assistance Target) Act 2015 and to reduce ODA spending for the next few years is profoundly upsetting to many, as it suggests that the UK is stepping back from its world-class, globally respected and unstinting commitment to supporting developing countries. I know that that anxiety is unfounded.

Does the Foreign Secretary agree that, while the silo budgets classified as ODA will be squeezed, we should take the opportunity that the global financial crisis has forced on everyone—as the Chair of the Foreign Affairs Committee, my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat) set out—to review fully the DAC rules on which we classify our ODA spending? In the meantime, will the Foreign Secretary make it clear to the House that all Government spending that works to strengthen the stability, governance, health, education—and I take this opportunity to thank Baroness Sugg for her extraordinary work over the past year on girls’ education—and climate shock resilience of developing countries supports all the sustainable development goals? Will he commit to review the historical multilateral payments commitments, which could be used much more impactfully to drive the UK’s priorities?

[Dominic Raab]

I join my right hon. Friend in paying tribute to Baroness Sugg, a terrific Minister who will be greatly missed. I congratulate my right hon. Friend on her appointment as the UK’s international champion on various climate change issues. With her expertise, passion and dedication, she makes an excellent case for taking a more strategic approach, not only in relation to the ODA spend that derives from the FCDO, but looking right across the piece, across Whitehall, to ensure that it is allocated in the areas where it has the greatest life-changing impact. We will do that on climate change and biodiversity, and on girls’ education and helping the very poorest around the world.