Russian Assets: Seizure

Debate between Iain Duncan Smith and Vicky Ford

Tuesday 14th March 2023 Commons Chamber

[Sir Iain Duncan Smith]

I entirely agree. I was going to raise that point at the end of my speech, but never mind: this is a shared debate.

I fully back that proposal, which is one of the recommendations that we have to make so that the Government can jump ahead of this. Too often we have been slow and, in the six months that have elapsed, in some of those cases, people have shifted their money around into all sorts of areas. One particular individual—I was going to name him, but I will not do so now—has managed to buy flats through a Cyprus company. His name is not registered, but they own it and the money is lodged there. This sort of stuff is going on and we need to shut it down.

[Vicky Ford (Chelmsford) (Con)]

I thank my right hon. Friend for raising such an important issue. Of course, the largest amount of Russian frozen assets are those of the Central Bank of the Russian Federation. Yesterday, the Chair of the Foreign Affairs Committee, my hon. Friend the Member for Rutland and Melton (Alicia Kearns), said that, if we do not have the right law in place to use those frozen Central Bank assets to pay for Ukraine’s reconstruction, we should change the law and test it in the courts. I agree with her; does my right hon. Friend?

[Sir Iain Duncan Smith]

My right hon. Friend is jumping ahead of me, so I will allow that point to stand for a minute.

I pay tribute to the hon. Member for Rhondda (Sir Chris Bryant), whose ten-minute rule Bill was on exactly this subject. There was a lot of logic and sense in that Bill, and we should use it as a baseline for quite a lot of the stuff that needs to happen. As he pointed out when he made his speech on the Bill, in the last year, the United Nations High Commissioner for Human Rights recorded 18,358 civilian casualties. He went on to say that 7,031 people had been killed, that 11,327 had been injured, including 177 girls and 221 young boys, that some 12 million people had left Ukraine and 7 million had been displaced internally. When I was there, I saw many people who had had to move to Lviv internally because their homes were no longer habitable, and they were living in terrible conditions.

[Vicky Ford]

Will my right hon. Friend give way?

[Sir Iain Duncan Smith]

I want to make a bit of progress, just in case my right hon. Friend is about to tell me what I have got here in my speech. Forgive me if I just get ahead of it, because everyone else will probably do the same.

Let us have look at the costs of the war, which are really what this is all about. Ukraine’s death toll is 60,000 and it is rising every day. The cost of reconstruction is now estimated to be between $750 billion and $1 trillion and rising, and these might be conservative estimates because the damage is still not fully accounted for. Since the beginning of the invasion, the UK has provided £2.3 billion in military assistance and another £220 million in humanitarian aid. The UK has frozen billions of pounds in Russian assets under sanctions following the invasion of Ukraine. The Office of Financial Sanctions Implementation has reported that £18 billion of assets owned by individuals and entities associated with the regime have been frozen since the beginning of the war, but some estimates suggest that more than £40 billion could yet be frozen and this is the point we want to get to.

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[Sir Iain Duncan Smith]

I agree with the right hon. Lady. If countries do this individually, it will allow terrible regimes to dodge their money around from one financial centre to another, as some will not have done it. This has to be done in one go by all the developed world’s major centres, otherwise it will end up with disputes and problems. I applaud Canada for starting, but we need the City of London, New York, Zurich and all the other major centres to be serious about making sure this cannot happen and these assets will always be seized.

I can tell the Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), that we understand the underlying problem, but my point is that the issues are not insuperable.

[Vicky Ford]

My right hon. Friend is making an excellent point, but I draw his attention to another source of funds. There are increasing stories that the Wagner Group may be using gold stolen from Sudan’s gold mines to fund part of its atrocious activities in Ukraine. The Wagner Group is obviously guilty of atrocities not only in Sudan but elsewhere in the Sahel and Africa. There are stories today that the Italian Defence Minister is directly linking the Wagner Group to the increase of small boat migrants in Europe. Does my right hon. Friend agree that, as well as taking action on Russian assets, we should urgently proscribe the Wagner Group as a terrorist organisation?

[Sir Iain Duncan Smith]

Yes, of course. It is a disgusting organisation led by a disgusting individual carrying out disgusting atrocities in Russia. It is also using slave labour in some of these mines. Of course the Wagner Group must be proscribed, as should the Islamic Revolutionary Guard Corps and other such organisations. We should be at the forefront of this, not lagging behind.

The Government’s general belief is that seizing these central bank reserves would violate Russia’s sovereign immunity and would therefore be a breach of international law. If we think about it, Putin has redefined international crime and is now hiding behind international law. It is time for us to come together to make the modifications. That is the key.

British and Overseas Judges: Hong Kong

Debate between Iain Duncan Smith and Vicky Ford

Wednesday 30th March 2022 Westminster Hall

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I beg to move,

That this House has considered the role of British and overseas judges in Hong Kong.

It is a pleasure and a privilege to serve under your stewardship, Ms Rees. Today’s debate was meant to be a demand from across parties that the Government should intervene and that British judges now serving in Hong Hong’s courts should withdraw. We have known for some time that the very presence of those judges has lent legitimacy to a brutal, totalitarian regime that has been prosecuting in Hong Kong against the Sino-British agreement terms and has been prosecuting people in Hong Kong whose only crime has been to cry out for freedom—the kind of freedom that we in this Chamber and in this country have taken for granted for years, and that we see the people in Ukraine fighting for. Meanwhile, in Hong Kong, British judges and lawyers have been serving in and around those courts and aiding them—not that they were setting out to do so, but their very presence has lent legitimacy.

However, just before I came in for this debate, I discovered that the Government have now agreed with us and wish the British judges to withdraw. Although that is not in the Government’s power, we have heard some interesting statements subsequently from the President of the Supreme Court. Will the Minister take this opportunity to intervene and make it clear what exactly the Government have said?

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Vicky Ford)]

I thank my right hon. Friend for calling us all together on this very important issue and for inviting me to update colleagues by way of an intervention on the decision that has been made. It was laid in a written ministerial statement last night and published this morning. The statement is as follows:

“British judges have played an important role in supporting the judiciary in Hong Kong for many years. Since 1997 judges from other common law jurisdictions, including the UK, have sat on the Hong Kong Court of Final Appeal as part of the continuing commitment to safeguarding the rule of law.

However, since Beijing’s imposition of the National Security Law in 2020, our assessment of the legal environment in Hong Kong has been increasingly finely balanced. China has continued to use the National Security Law and its related institutions to undermine the fundamental rights and freedoms promised in the Joint Declaration. As National Security Law cases proceed through the Courts, we are seeing the implications of this sweeping legislation, including the chilling effect on freedom of expression, the stifling of opposition voices, and the criminalising of dissent.

Given this concerning downward trajectory, the Foreign Secretary has agreed with the Deputy Prime Minister and Lord Chancellor and the President of the UK Supreme Court Lord Reed, that the political and legal situation in Hong Kong has reached the point at which it is no longer tenable for serving UK judges to participate on the Court of Final Appeal. As such Lord Reed and Lord Hodge submitted their resignations to the Hong Kong authorities today. We are grateful for their service, and that of their predecessors.

The UK remains committed to stand up for the people of Hong Kong, to call out the violation of their rights and freedoms, and to hold China to their international obligations.”

[Sir Iain Duncan Smith]

I am grateful to the Minister for intervening on my opening remarks to make it clear what the Government have said, and I welcome that. We set up an organisation, the Inter-Parliamentary Alliance on China, a few years ago. It takes parliamentarians around the world from the left and right. There are 22 or 23 countries involved, from Japan to America, and we have all—as one voice throughout, and from all sides and from different parties—cried out for this for some time, so I unreservedly welcome today’s statement. I understand that my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), who was himself Lord Chancellor, wants to intervene.

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[Vicky Ford]

I thank the hon. Member for his intervention. It is for UK and foreign retired judges to make their own decisions about whether to remain sitting. However, it is important to remember that the national security law is not aligned with UK values. As cases under that law proceed through the courts, judges will increasingly be required to enforce Beijing’s laws—not laws aligned with the UK.

I thank Lord Reed and Lord Hodge for their work. They have submitted their resignations today and they are effective immediately. I agree with the Opposition spokesman, the spokesman for the SNP and so many others across this House that this is a sad reflection of how far the political and legal situation in Hong Kong has deteriorated.

I put it on the record that British judges have played an important role in supporting the judiciary in Hong Kong since the handover. There is no legal requirement for the UK Supreme Court or the UK Government to uphold the agreement that the UK would provide two serving judges, but they have since been provided. It was a part of the UK’s continuing commitment to safeguard the rule of law in Hong Kong. However, the UK Government have said for some time that our support for the presence of UK sitting judges in the Court of Final Appeal was finely balanced. Since it came into place, it has been very clear that the national security law violates Hong Kong’s high degree of autonomy, which was provided for in the joint declaration.

I thank every single Member in this House—across the House—for their support for the decision that has been made by the Foreign Secretary, the Lord Chancellor and the judges. In particular, I thank the former Lord Chancellor, my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), for coming here today, and for his wise words about the importance of the independence of the judiciary. However, the decision to withdraw sitting UK judges from the Hong Kong Court of Final Appeal should not be misconstrued as a weakened UK commitment. We absolutely remain committed to the people of Hong Kong, and will continue to call out violations of their rights and freedoms and hold China to its international obligations.

As hon. Members will recall, the UK Government responded quickly and decisively to the enactment of the national security law. That included introducing a new immigration path for British nationals overseas, suspending our extradition treaty with Hong Kong and extending our arms embargo on mainland China to cover Hong Kong. The visa route for BNOs opened on 31 January 2021, and by the end of the year there were almost 104,000 applications. On 24 February, my right hon. Friend the Home Secretary announced changes to the BNO route to enable individuals aged 18 or over but who were born after 1 July 1997 and have at least one BNO parent to apply to the route independently of their BNO parent.

We have also co-ordinated action with international partners to hold China to account, including through our presidency of the G7. In December, we released two critical joint statements with G7 partners and the Foreign Ministers of Australia, Canada, New Zealand and the United States, following Hong Kong’s Legislative Council elections. In February, we co-led a media freedom coalition statement, signed by 21 international partners, which called out attacks on media and press freedoms, including closure of Stand News and the associated arrests of journalists. Earlier this month, we used the latest session of the United Nations Human Rights Council to call out China’s systematic undermining of rights and freedoms in Hong Kong. We remain in regular contact with our international partners about Hong Kong and continue to work intensively on the world stage to hold China to its international obligations.

The hon. Members for Manchester, Gorton (Afzal Khan), Mitcham and Morden (Siobhain McDonagh), Strangford (Jim Shannon) and others mentioned the situation in Xinjiang. The evidence of the scale and severity of human rights violations being perpetrated in Xinjiang against the Uyghur Muslims is far-reaching and paints a truly harrowing picture. The UK Government have led international efforts to hold China to account for its human rights violations in Xinjiang, as well as in Hong Kong, and earlier this month the Foreign Secretary again reiterated our deep concerns about the situation in Xinjiang in her personal address to the UN Human Rights Council.

The hon. Member for Hornsey and Wood Green asked about sanctions. On 22 March, the former Foreign Secretary announced that under the UK’s global human rights sanctions agreement, the UK posed asset freezes and travel bans against four Chinese Government officials, as well as an asset freeze against one entity responsible for enforcing repressive security policies across many areas of Xinjiang.

[Sir Iain Duncan Smith]

Following on from what the hon. Member for Hornsey and Wood Green (Catherine West) said, however, while welcoming all those sanctions, the problem is that we have sanctioned fewer people than the United States and other countries. I urge the Minister to take back to the Department what we have already said in the all-party parliamentary group and what has been said elsewhere here today. We are behind the curve on this now. These people are abusive and are responsible for the literally deathly imposition of slave labour and genocide. Can she please now catch up with the United States?

[Vicky Ford]

I thank my right hon. Friend for that intervention. I will certainly take that away. I noted his point regarding the Health and Care Bill, and I know that no one in this House supports the use of forced labour, particularly in creating goods for the NHS. We are fully committed to ensuring that that does not happen and will set out this afternoon further measures that we are intending to take on that issue.