Financial Assistance to Ukraine Bill

Lord Beamish Excerpts

2nd reading & Committee negatived & 3rd reading
Wednesday 15th January 2025 Lords Chamber

[Lord Beamish (Lab)]

My Lords, I join other noble Lords in looking forward to the maiden speech of the noble Baroness, Lady Batters. I represented a rural constituency in the other place for 23 years, I worked with the NFU, and I know the effectiveness of her leadership of that organisation. I am sure that she will bring to this House not only her knowledge of the farming sector but her passion for it.

Next month, we will see the third anniversary of Russia’s illegal and brutal invasion of Ukraine. Few people imagined back in February 2022 that Ukraine would be able to resist its much more powerful neighbour and the brutal way in which it invaded a sovereign state—but it has, which is down to the determination of the Ukrainian people, along with the bravery and innovation shown by its armed forces.

That is why I welcome today’s Bill to help the Ukrainian people to continue to resist aggression and to defend the principle that a sovereign nation’s territory should never be taken by force. That principle was one of the cornerstones of the international rules-based order that came out of the ashes of the Second World War, which is today being defended on the battlefields of Ukraine. Along with the determination of the Ukrainian people, the financial support provided by the UK, US, Europe and international partners has been vital in resisting Russian aggression.

The agreement by the G7 is an example of why our membership of international organisations is so important. That collective effort and endeavour not only keeps us safe but means that our voice is stronger when it is deployed with those who share our values and interests. Three years into the war, this Bill and the efforts of the G7 send a very clear message to Russia that its aggression will continue to be resisted. As a member of the NATO Parliamentary Assembly, I also know from our meetings with Ukrainian parliamentarians that the single voice that is put out by the UK Parliament is very much appreciated by Ukraine. I am pleased to see that, today, that is again echoed in the cross-party support for this Bill.

The $50 billion produced by the agreement by the G7 will provide vital funding for Ukraine to support its military, humanitarian and—as already outlined in the debate—economic recovery. The UK’s £2.6 billion contribution to the ERA fund will be earmarked for military procurement to bolster Ukraine’s self-defence. We can look at the way in which Russia has indiscriminately fired missiles into Ukraine’s civilian population to see why that investment is important. As the Minister said, this is in addition to the £12.8 billion that the UK has already given in support of Ukraine. It is also in addition to the support given by ordinary men and women in this country who opened their doors to Ukrainian refugees in the early stages of the conflict.

The unique nature of this agreement means that the loan will be paid not by Ukraine but from the extraordinary profits made on sanctioned Russian sovereign assets that are held by the EU. As we know, many of those assets, both private and state, will have been stolen from the Russian people to benefit the elites around Putin. The sanctions and asset freezes, as the Minister pointed out in his opening address, have been an important tool in limiting the Russian aggression in Ukraine, not only by the Russian state but, it can be argued, by individuals who are perpetuating the myth that Ukraine is part of sovereign Russia.

More needs to be done, however, whether controlling Russia’s use of its grey tanker fleets to evade oil sections or the export of UK and EU goods through third countries to Russia to avoid sanctions. Sanction-busting exports range from electronic goods that are useful to the Russian military all the way to Rolls-Royce motor cars. What more can be done to clamp down on this circumvention of sanctions, not only through exporting to third countries but through companies in this country whose products are still ending up in Russia?

I do not know whether the Minister saw the article in the latest Sunday Times about the export of Rolls-Royce cars to Russia. In it, Chris Brownridge, Rolls-Royce’s chief executive, commented that there was no evidence of its dealers breaking sanctions. Considering the unmistakeable evidence that Rolls-Royce motor cars are still appearing in showrooms in Moscow, this seemed quite a pathetic response; he clearly does not have a very inquiring mind in asking how they are getting there. Rolls-Royce cars may be one of the more visible signs of sanctions evasion, but we know that components for electronic and other goods are being sent through third countries to Russia to help in the building of components for military equipment, which is then being used in Russia’s war in Ukraine.

I have some sympathy with the amendment tabled by the noble Lord, Lord Blencathra. More needs to be done on how we free up these assets. We also need to look at what else can be done to find assets in this country that have clearly been used and salted away with third parties to avoid sanctions or freezing.

I once again welcome the Bill and the continuing cross-party support for Ukraine in its struggle against Russian aggression. This will be a clear message from both this House and the other House that Russian aggression will be resisted, and that Ukraine has our full, united support.