Frozen Russian Assets: Ukraine

James MacCleary Excerpts

Monday 6th January 2025 Commons Chamber

[James MacCleary (Lewes) (LD)]

I start by thanking my hon. Friend the Member for Tunbridge Wells (Mike Martin) for securing this valuable and important debate.

Russia’s illegal war in Ukraine is not just an assault on one nation. It is a direct challenge to the values that unite Europe: democracy, sovereignty, and the rule of law. Europe must respond with strength and unity, and the UK has a unique role to play in leading the charge. Russia’s malign influence extends far beyond Ukraine. From interference in democratic elections across Europe to spreading disinformation, the Kremlin has shown its commitment to undermining the democratic values that bind our continent. This is not just Ukraine’s fight; it is a fight for the integrity of all our democracies.

Our defence sector is among the largest in Europe, and our international influence remains significant. When I meet European colleagues, one message is clear: they want the UK to lead. This is a moment for the UK to step up and demonstrate the leadership that has long defined our place in Europe—even though we are, for now, outside the European Union.

Seizing frozen Russian assets and repurposing them is one of the most effective ways to support Ukraine. These funds are not just financial resources; they are symbols of aggression that must become instruments of justice. Putin’s grasp on power depends on corruption and control; by seizing and repurposing these assets, we can weaken his grip. Our allies have shown the way. Canada amended its Special Economic Measures Act to allow the seizure of Russian assets for grave breaches of international peace, and the United States passed the REPO—Rebuilding Economic Prosperity and Opportunity for Ukrainians—Act to transfer Russian sovereign assets directly to Ukraine. These steps provide clear and workable models for the UK and Europe to adopt.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

I agree on the legal precedent, and it would be interesting to hear the Minister comment on that. We have heard about the Iraq precedent; the legal precedent is there. Does the hon. Gentleman agree that, crucially, Russia has stepped outside the international norm, and that to protect the international rules-based system, we must show that there are consequences? It is imperative that we take action to show that matters.

[James MacCleary]

I thank the hon. Member for his intervention. It is as if I had given him a copy of my speech; I was about to come on to that. Stopping the Russian assault on Ukraine is part of a wider struggle for the future of democracy and liberty, in Europe and around the world. Russian ruler Vladimir Putin has made this war an existential one, staking the future of his regime on it. We must be in no doubt that current and wannabe dictators are watching closely to see how European powers respond to Russia’s challenge. Any wavering in our support for Ukraine could easily be interpreted as a green light to others to launch grabs for coveted territory. In short, the basis of the liberal world order is at stake, and Britain has a duty to protect that order, which we did so much to create.

With the looming return of Donald Trump to the White House, the stakes for Europe could not be higher. The future of US support for Ukraine is uncertain, and Europe must be prepared to step up. This is a wake-up call for the UK; we must lead within Europe and ensure that brave Ukrainians receive the robust support that they need from us.

Beyond repurposing Russian assets, we must also address the systemic failures that have allowed dirty money to flood into our economy. The UK has long been a destination of choice for Russian wealth, much of it funnelled through loopholes in economic crime legislation. It is time to properly resource the National Crime Agency, close these loopholes, and make it clear that kleptocrats are no longer welcome here.

Members who, like me, are students of Russian and east European history will be familiar with the word Holodomor. There have been lots of references to history and the lessons that we should take from it. For those who are not familiar with the word, we would simply call it the Ukrainian famine. In 1932 and 1933, uncounted millions of Ukrainians starved to death as a direct result of policies prosecuted by another dictator in the Kremlin, Joseph Stalin. I genuinely hope that those in this Chamber in the future will not look back on us and say that we could have done more to stop another great crime against the Ukrainian people.

The Liberal Democrats have been clear that this is about more than military aid; it is about holding Russia accountable and strengthening Ukraine’s defences. Ukraine’s fight is our fight; by taking action now, the UK can reaffirm that aggression will never be rewarded, that Europe will always stand firm in defence of freedom, and that Britain remains at the heart of the continent’s security and values.

[Madam Deputy Speaker (Caroline Nokes)]

I call shadow Minister Gareth Davies.