International Anti-corruption Court

Lord Ahmad of Wimbledon Excerpts

Thursday 6th July 2023 Lords Chamber

[Lord Hain]

To ask His Majesty’s Government what assessment they have made of proposals for an International Anti-Corruption Court.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, this Government are fully committed to ensuring that those responsible for the most egregious acts of corruption are held to account. We have considered the idea of an international anti-corruption court, including with 40 international partners in November last year. Together with them, we concluded that now is not the time to endorse a new, bespoke institution of this nature. However, the Government will set out their plans for combating transnational grand corruption in the second UK anti-corruption strategy later this year.

[Lord Hain (Lab)]

My Lords, I thank the Minister for his reply, but it is very disappointing. Money laundering represents over 5% of global GDP, or $2 trillion each year, yet there is no effective mechanism to prosecute kleptocrats, corrupt businesspeople, oligarchs or their professional enablers. Canada, the Netherlands, Ecuador, Moldova, Nigeria and the European Parliament have recently called for the establishment of an international anti-corruption court, as have over 300 leaders from over 80 countries, over 45 former Presidents and Prime Ministers and 30 Nobel laureates. A group of leading international jurists and other experts is now drafting a model treaty. Will the Government join with them now to tackle this terrible international scourge?

[Lord Ahmad of Wimbledon (Con)]

My Lords, while I appreciate the long-standing commitment and work of the noble Lord, where I disagree with him is that I believe that much has been achieved and is being done. As I said, we have consulted on this issue extensively; we continue to engage with the countries the noble Lord listed that are involved in the development of this concept. At the same time, as he and other noble Lords may be aware, the UK’s international corruption unit is a world-leading capability; it was set up in 2017 alongside the Five Eyes plus others. Much has been achieved: since 2017, the unit has received 247 referrals of grand corruption from over 40 countries and, as a result, has disseminated 146 intelligence reports, identified £1.4 billion-worth assets, and supported the freezing of £623 million-worth of assets and the forfeit and confiscation of £74 million. As I have said, our work continues. In 2022 alone, intelligence collated across these jurisdictions supported the identification of a further £380 million in stolen assets. We are working, and we are working in co-ordination. I appreciate the strong work the noble Lord has done in this area, but, as I have said, an international institution can be set up, as he will know from his own ministerial experience, only with the support of a broad range of partners. The Five Eyes partners are crucial, and we are working very closely with them.

[Lord Oates (LD)]

My Lords, in his speech at Chatham House earlier this year, the Development Minister, Andrew Mitchell, pledged that the Government would

“bear down on … the flows of dirty money which … represent money stolen particularly from Africa and African people”.

Can the Minister tell the House what steps the Government are taking to achieve that objective? Would not the establishment of an IACC play a key role in such efforts? The Minister said that world opinion is not in the right place, so could he tell us what he and the Government are doing to lead on this issue to ensure that we get to a point where world opinion is in the right place?

[Lord Ahmad of Wimbledon (Con)]

My Lords, this is an ever-evolving challenge, and I fully accept the principle that more needs to be done; we continue to work on that. The noble Lord raised issues about Africa, so I will give examples of the international corruption unit’s success. In March 2021, the first £4.2 million of assets stolen by James Ibori, the former governor of Delta state, were returned to Nigeria. In Malawi, the dual UK-Malawian national Zuneth Sattar is alleged to have defrauded the Malawian Government of billions of kwacha. The ICU has seized 19 properties in the UK, as well as cars, including a Lamborghini and a Bentley, owned by Mr Sattar. Those are two examples; in Angola and Nigeria, the Government and this unit have seen other successes. I assure all noble Lords that we continue to be very seized of these and are working very closely with our key partners. We have seen results since the establishment of the unit in 2017.

[Lord Kamall (Con)]

My Lords, given that the Government are not in favour of the proposal outlined by the noble Lord, Lord Hain, could the Minister say whether the Government are working via any of the international or intergovernmental organisations to tackle this issue of corruption and money laundering? Does he see that as a useful alternative to a new body such as a new court?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure my noble friend that we are. For example, there is a UN instrument of which we have been very supportive; it needs to be further strengthened, and we are working with key partners in the UN context to ensure that. I know of my noble friend’s interest in the Commonwealth; we are also looking at aiding and funding support structures in the Commonwealth. Going back to the previous question, a particular focus on Africa is a key part of our work in this respect.

[Baroness Whitaker (Lab)]

My Lords, I declare an interest as a former member of Transparency International UK’s council, and that my daughter works in this field. I put it to the Minister that a recent survey showed that 70% of those recently polled across the G7 and BRICS countries—whose populations account for the majority of the world—support the establishment of an international anti-corruption court to deal with cases that national Governments and their tribunals either will not or cannot handle. Could not the Minister, whose approach to this is welcome, use this fact to persuade his own officials that this is really worth backing?

[Lord Ahmad of Wimbledon (Con)]

My Lords, if I may be clear, the noble Baroness talks of the majority of the world’s population, but obviously the G7 does not include countries such as India. We remain focused on ensuring that we work with Governments to tackle issues of corruption. On the particular point that the noble Baroness raises, I too know of the vital work that institutions such as Transparency International, and the FCDO works very closely with them. Such bodies do inform our decisions but, as I said, we have considered this with other partners, including 40 other countries, and setting up a new international structure at this time is not something that has been supported. It needs that level of broad support. It does not mean it is totally off the table; it means that we continue to work in a co-ordinated fashion on some of the instruments that I have already highlighted. As I am sure the noble Baroness will accept, we are seeing real delivery and real results in terms of the seizure of assets and penalties imposed on those who commit these crimes.

[Lord Collins of Highbury (Lab)]

My Lords, I will pick up the point made by the noble Lord, Lord Kamall, on how we change world opinion on this subject. The president of ECOSOC recently said this accounts for 5% of global GDP—as my noble friend said—and that has a huge impact on sustainable development goals. We will not be achieving them because of this level of corruption. What assessment have the Government made of working within the UN to raise the profile of this issue? In particular, have they considered steps to promote a UN Convention against Corruption as a means of tackling this issue, so that we win world opinion?

[Lord Ahmad of Wimbledon (Con)]

My Lords, as I said in response to my noble friend, the UNCAC is one such instrument. In terms of its effectiveness, that is something that needs to be bolstered further; it needs to be adapted and reflective of some of the challenges that we are all aware of—the use of technology, for example, that feeds some of these crimes. I assure the noble Lord that we are working through all the existing structures. He is right: we need to ensure that those that have a transnational approach, particularly the UN structures, are further bolstered. There are, I think, further meetings planned for later this year. As the Minister responsible for this area in the FCDO, I am working not just with key partners within the Five Eyes, as I have illustrated, but also further afield, including in areas such as the Gulf.

[Lord Alton of Liverpool (CB)]

My Lords, in proceedings on the economic crime Bill, the Minister’s noble friend Lord Sharpe of Epsom kindly agreed to the principle of the all-party amendment to that Bill on what to do about sanctioned assets—a point the noble Lord, Lord Hain, was raising. The noble Lord, Lord Sharpe, agreed to bring forward secondary legislation before the end of this calendar year. Given what the Minister has said about the importance of departments working with one another, can he give us an assurance that the FCDO will be co-operating regularly with the Home Office to bring forward that secondary legislation? Will he look again at the parliamentary oversight of things such as the Magnitsky sanctions, so we can understand the rather opaque way in which some of those are decided?

[Lord Ahmad of Wimbledon (Con)]

My Lords, on the noble Lord’s second point about Magnitsky sanctions, I am very proud of the fact that we have strengthened our work in that respect. Later today, we will also be discussing, through a Statement, some of the additional steps we have taken using those very levers. The important thing about the sanctions that the United Kingdom deploys is that there is legal oversight. There is a real robustness for those institutions, organisations and individuals that may feel that they have been unjustifiably sanctioned, and that is a strength of the UK law. On the noble Lord’s earlier point, the noble Lord to whom he referred is not only a noble friend but also a dear friend, and I assure the noble Lord that there is full co-operation across all government departments.

Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2023

Lord Ahmad of Wimbledon Excerpts

Wednesday 5th July 2023 Grand Committee

Moved by

[Lord Ahmad of Wimbledon]

That the Grand Committee do consider the Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2023.

Relevant document: 45th Report from the Secondary Legislation Scrutiny Committee. Instrument not yet reported by the Joint Committee on Statutory Instruments.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, these regulations amend the Russia (Sanctions) (EU Exit) Regulations 2019. This instrument was laid on 19 June 2023, under powers provided by the Sanctions and Anti-Money Laundering Act 2018. It contains measures that increase the pressure on Mr Putin as we continue to support Ukraine and its people in their resistance to this illegal war.

I start by addressing the first part of this legislation. This amendment will enable us to keep sanctions in place until Russia pays for the damage it has caused to Ukraine. I know that this been of great importance to noble Lords. In March this year, the World Bank estimated that the reconstruction of Ukraine will cost more than $400 billion, a figure that, sadly and tragically, rises daily. On 21 and 22 June, as noble Lords will be aware, the United Kingdom cohosted the Ukraine recovery conference here in London, galvanising international support—including, importantly, from the private sector. International commitments topped more than $60 billion towards Ukraine’s recovery and reconstruction by the end of the conference.

My right honourable friend the Prime Minister’s message at the conference was clear: Russia must pay for the destruction it has wreaked. That is why we are keeping up the economic pressure on Russia, with an unprecedented package of sanctions targeting over 1,600 individuals and entities since the start of the invasion. This includes dozens of banks with global assets worth £1 trillion and more than 130 oligarchs, freezing £18 billion- worth of assets and costing Russia £20 billion-worth in trade. We have maximised the impact of these measures by co-ordinating with key international partners. Together, we are constraining the funding of Mr Putin’s war machine, inflicting a huge economic cost and demonstrating our direct support for Ukraine.

Russia’s economy posted a deficit of nearly $50 billion in 2022, the second highest of the post-Soviet era, and with our partners we are choking off Mr Putin’s access to key technologies that he needs on the battlefield. We have not stopped there. This legislation marks further progress in our battle against Mr Putin’s unwarranted aggression and more. Building on the commitment by G7 leaders in May that sovereign assets will remain immobilised until Russia pays up, the statutory instrument that we are debating enables us to keep sanctions in place until Russia does just that. I am proud to say that the United Kingdom is the first member of the sanctions coalition to make that commitment real.

We will continue to demonstrate international leadership as we look to increase the pressure on Mr Putin and those who support him. As my right honourable friend the Foreign Secretary said, in light of recent events, it is clear that cracks are emerging in Russian support for the war. As internal criticism of Mr Putin’s war grows, we will introduce a new route for those under sanction to request that their frozen funds are used for Ukrainian reconstruction. Let me be clear: there is no negotiation, no quid pro quo, no relief from sanctions, no access for those individuals to their assets while they remain under sanctions. But if they wish to do the right thing and use their frozen funds to help right the wrongs caused by Mr Putin’s invasion, there will be an approved route to allow them to do just that.

We will also tighten the net on those hiding assets in the United Kingdom. We will require individuals and entities in the UK, or UK persons overseas designated under the Russia sanctions regime, to disclose assets they hold in this country. Failure to do so could result in financial penalties or the confiscation of assets. We will legislate to require those holding assets in the UK on behalf of the central bank of Russia, the Russian Ministry of Finance or the Russian National Wealth Fund, to disclose them to the Treasury. Our action will increase transparency on where these assets are held, and limit opportunities for sanctions evasion. I am sure that noble Lords listened carefully to the discussion in the other place on 27 June. We continue to welcome parliamentary interest and support on this important matter.

Many noble Lords will be aware of the active debate with our international partners on the use of sanctioned assets to support Ukraine’s recovery. No country—as yet—has found a solution, but we are confident that we will work forward together. In that confidence, we must ensure that any solution is legally sustainable. We are also working very closely with our allies on the handling of seized Russian assets and will continue to do so. If progress is made by our international partners, we will learn from that. Nothing is off the table, and a cross-government task force is carefully considering all proposals—including those our partners may bring forward. 

I now turn to the second part of this legislation. It amends the definition of non-government controlled Ukrainian territory—including Crimea and the non-government controlled areas of Donetsk and Luhansk Oblasts—to incorporate the non-government controlled areas of the Kherson and Zaporizhzhia Oblasts. This change reflects the dynamic situation on the ground and allows our sanctions to adjust to the developments as they unfold. Measures applying to non-government controlled Ukrainian territory in areas of finance, trade and shipping therefore now apply to all those areas not currently under the control of the Ukrainian Government. 

The United Kingdom is unwavering in its support for Ukraine’s independence, territorial integrity and sovereignty. These measures will restrict the ability of the so-called authorities in these regions to access UK goods and services, investment and finance. Exceptions are in place to cover the delivery of humanitarian assistance or the maintenance of medical facilities to ensure these sanctions are targeted to avoid affecting civilians. 

To conclude, these latest measures demonstrate our collective determination to target those who participate in, or facilitate, Mr Putin’s continuing illegal war on Ukraine. I assure noble Lords that we will continue to work in unison with Ukraine and our important international partners until Ukraine is restored and the region is secure. The United Kingdom Government will not stop the pressure on Mr Putin and his associates until they have withdrawn from Ukraine, and we welcome the clear and continued strong cross-party support for the actions we have taken. I beg to move.

[Lord Collins of Highbury (Lab)]

My Lords, I start by picking up the point that the Minister made at the end of his contribution, which is that the Opposition remain absolutely at one with the Government in supporting Ukraine and to ensure that there is a full withdrawal of Russia after its illegal invasion. I also welcome these new regulations, particularly as they are designed to ensure that Russia pays for its actions and that certain assets remain frozen so that it pays proper compensation, as the Minister said.

The noble Lord referred to the World Bank estimate of $411 billion as the cost of rebuilding Ukraine; of course, that figure is likely to increase. However, we know that some $300 billion in foreign exchange reserves held by the Russian central bank are currently frozen. The noble Lord knows I am going to ask this question because I have asked it before. At what point will we consider bringing forward legislation to repurpose those frozen assets, so that we can deliver on the commitments made at the excellent reconstruction conference and see that there will be progress in this regard?

I do not know whether the Minister is in a position to update the Committee on the implementation of the 2022 UN General Assembly resolution to establish an international mechanism for Ukraine’s reconstruction, but it would be good to have regular updates on that so that we can follow through on the commitments made at the reconstruction conference. That deals with the first part of the regulations.

--- Later in debate ---

I conclude by repeating that we welcome these regulations, and we certainly support the Government’s actions in supporting the Government of Ukraine in trying to repel the Russian invasion.

[Lord Ahmad of Wimbledon (Con)]

My Lords, first, I again put on record our thanks to His Majesty’s Official Opposition for their strong support of the Government’s actions when it comes to sanctions on Russia and, indeed, those supporting Russia. I acknowledge many noble Lords, across all parts of your Lordships’ House, in this regard. We very much send a consistent message.

The noble Lord raised frozen assets. As I said, we are working closely with our key partners to look at the assets that are now frozen and what the legal and sustainable routes will be to ensure that no challenge is brought forward on the funds we hold. Those apply to UK funds—previously we have discussed Chelsea FC and its proceeds—and I assure him that much work is being done, particularly by our colleagues in His Majesty’s Treasury, to ensure that, first and foremost, structures are set up appropriately and that the measures we take are sustainable and withstand any legal challenge we may face.

In the same way, as we work very closely with our partners in the US, Canada and the EU, they are equally seized of this issue. If good practice prevails in one area, we will look to see how we can replicate that. Of course, as we find solutions, we will share them with our colleagues in the EU.

The noble Lord asked specific questions about settling our CB assets. We continue to explore lawful fund routes, as I have said, and we focused on this at the Ukrainian reconstruction conference. To add to what I have already said, I point out that beyond the EU—including our G7 partners—there is no legally tested solution yet, but I assure him that we will continue to provide updates as we make further progress in this regard.

The noble Lord asked the pertinent question of why we are doing this now and not before, particularly as these regions were annexed months ago. He will be aware of the sanctions we have introduced; his party has strongly supported them. Since the start of the invasion, the UK has sanctioned over 1,600 individuals and entities, including 29 banks, with global assets worth £960 billion; over 130 oligarchs, with a combined net worth of £145 billion; and over £20 billion-worth of UK-Russia trade. Together with our international partners, we have unleashed the largest and most severe package of sanctions ever imposed on a major economy. On his specific point, we are monitoring a very fluid area, particularly those regions which have been illegally annexed. We need to ensure that the actions that we are taking are co-ordinated and have the desired effect.

In terms of what I have announced about the governance of these new sanctions, we are certainly ahead of our partners. We are ensuring that they are replicated; I am sure that our partners are looking at how they can replicate some of the steps we have taken.

The noble Lord made an equally valid point about how quickly the sanctions can be lifted if these territories are liberated. We are watching a very fluid situation, but we will seek to minimise any kind of disruption as Ukrainian forces liberate regions of their own country which are illegally occupied. Tragically, we are a fair bit off that at the moment, particularly where the liberation of certain key regions is concerned, but I will update him in this respect.

Could I trouble the noble Lord to expand on the specific point he raised at the end and the figure he cited? I will seek to answer that now; if I cannot, I will write to him.

[Lord Collins of Highbury (Lab)]

I was just seeking an explanation in relation to the impact assessment estimating that these regulations will have a net cost to business of £24 million. Is this based on the assumption that UK businesses were continuing to be active and trading in these areas?

[Lord Ahmad of Wimbledon (Con)]

I thank the noble Lord for that clarification. Obviously there are assessments and forecasts made. I will take that back and write on those points.

As someone who many years ago worked with a chief economist, I think the other issue with forecasting is that you are looking at the situations as they stand. With the increasing levels of sanctions imposed, the increasing geographical implications and the increasing number of sectors and entities, there will of course be an increase in the overall cost to countries and businesses which were previously dealing with some of these entities or individuals. When I write to the noble Lord, it will be with a snapshot at a given moment in time, but I will certainly follow up on that.

In closing, I once again thank the noble Lord for his strong support and that of His Majesty’s Opposition. I know that he and his party are at one with the Government on this. Once again, this House has sent a consistent and unified message that we stand with the people of Ukraine. This can end now if Mr Putin withdraws, and we will repeat that message through every channel.

The noble Lord also asked about broader issues within the UN structure and the UN Security Council to see how we can take that forward. My right honourable friend the Foreign Secretary will travel to New York—it is currently the United Kingdom’s presidency—and he himself will chair the debate on Ukraine, which will include announcements about further developments and recovery.

Motion agreed.

Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2023

Lord Ahmad of Wimbledon Excerpts

Wednesday 28th June 2023 Grand Committee

Moved by

[Lord Ahmad of Wimbledon]

That the Grand Committee do consider the Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2023.

Relevant document: 44th Report from the Secondary Legislation Scrutiny Committee (instrument not yet reported by the Joint Committee on Statutory Instruments)

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, this statutory instrument was laid on 8 June under the powers provided by the Sanctions and Anti-Money Laundering Act 2018. It amends the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 by broadening the designation criteria and introducing new financial and trade measures. These enhanced sanctions reflect, and are designed to disrupt, the ability of Belarus to support Mr Putin’s war and are designed to deter it from engaging in actions that further destabilise Ukraine.

The Government introduced their previous package of sanctions against the Belarusian regime almost one year ago. It included a range of financial and trade measures, and our trade with Belarus has subsequently dwindled. However, Belarus has continued to support the Russian invasion of Ukraine. It allowed Russian forces to use its territory as the launch pad for the illegal invasion of Ukraine. It trained Russian soldiers, supplied materiel and continues to provide logistical support to Russia.

Mr Lukashenko’s cronies continue to spread Mr Putin’s poisonous propaganda and disinformation, and there is evidence to suggest that Belarus could be providing a route to circumvent the unprecedented suite of targeted sanctions that we and our allies have imposed on Russia. I know that that has been a cause of specific concern for all Members of your Lordships’ House. We condemn the actions taken by Mr Lukashenko and his regime in support of Mr Putin’s and Russia’s illegal war on Ukraine. In response, we are absolutely determined to scale up our sanctions package against Belarus. The measures in this latest package seek to block circumvention routes and broaden our designation criteria, while adding new powers to constrain propagandists.

I will take each aspect of the package in turn. The instrument contains new trade sanctions, including a ban on UK exports to Belarus of banknotes and on a wide a range of machinery, as well as chemicals that could be used in the production of chemical and biological weapons. It will prohibit the export of precursor chemicals that could be used in the manufacture of chemical and biological weapons. This instrument also bans the import of Belarusian cement, wood, rubber and gold. This will help to further clamp down on revenue streams for the regime.

These new trade sanctions on cement, rubber, wood and machinery will align us with previous EU sanctions and, in the case of precursor chemicals and gold, they go further. The noble Lord, Lord Purvis, has often focused on this issue, so I thought I would share that with noble Lords. At this juncture, as we have said before, while we are moving in a co-ordinated fashion, there may be occasions when we are ahead of our allies or our allies are ahead of us, but the alignment continues to work well.

The measures also include further financial sanctions to prevent Belarus using money markets or transferable securities instruments. Again, noble Lords have raised this issue regularly. Belarus has sought to use such instruments to raise revenue. Thus, by taking these measures, we will be constraining its ability to support Mr Putin’s invasion.

Another key aspect of this amendment is the broader range of designation criteria, which is extremely important. It will allow us to sanction a wider range of the regimes’ facilitators, including government aides, advisers and Ministers. Where appropriate, it will also enable us to target family members of individuals already designated to prevent them benefiting from asset transfers designed to circumnavigate the bite, effect and impact of UK asset freezes.

This instrument also provides the UK Government with powers to prevent designated Belarusian media organisations spreading propaganda in the UK, including over the internet. These measures provide powers to restrict the reach of Russian and Belarusian disinformation, and go some way further to reduce the impact of the disgusting practice of posting forced confessions online.

These strategic and targeted measures will sit alongside the wide-ranging sanctions that we have already imposed on more than 100 individuals and entities for their role in the violent oppression of Belarusian civil society, opposition groups and the media. I know that this point has been raised by the noble Lord, Lord Collins, among others. We are targeting individuals including Mr Lukashenko and key members of his regime.

To conclude, as noble Lords recognise, the instrument we are debating today is part of our broader efforts to target Mr Lukashenko’s Belarusian regime for its continued support of Russia’s illegal actions in Ukraine. It is important to be clear that the UK Government have no issue with the people of Belarus. They deserve leadership that does not oppress them or ignore the interest of the Belarusian people in preference for or in support of President Putin.

We reserve the right to introduce further measures in co-ordination with our international partners. Again, I am grateful for the strong support that we have received from noble Lords, particularly the Front Benches. Should Mr Lukashenko’s regime continue to prop up Mr Putin’s illegal war in Ukraine, we will seek to act further. I beg to move.

[Lord Purvis of Tweed (LD)]

My Lords, I am grateful to the Minister for introducing these regulations. He knows of the Liberal Democrat support for these sanctions, which has been consistent and wholehearted. He is absolutely right that the direct focus of these measures should be the regime supporting this illegal conflict, not the people of Belarus.

I am grateful for officials’ work on the very comprehensive impact assessment. Perhaps other ministries could learn from the thoroughness with which the impact assessment was put together, so I commend the officials for that. It is incredibly important that impact assessments are there and are clear, because these measures mean nothing unless they can be enforced. What level of enforcement is now anticipated?

I read the Hansard of the House of Commons’ coverage on this measure and the new financial sanctions. A question was put to the Minister’s counterpart on the resources, capacity and ability of the Office of Financial Sanctions Implementation to enforce these measures properly. If I may say so, this issue has been consistently raised by the noble Lord, Lord Collins, in previous debates on these issues. The Minister there said that the Government’s view was that £20 million had been used as penalties for Russian sanctions but there has been little information. I would be grateful if the Minister here could clarify what the impact has been already. The benefit of co-ordination, and the area of focus, has to be on ensuring that UK-based law and consultancy firms are not being used to circumvent these measures.

I am grateful to the Minister for referencing the issue that I have raised on a number of occasions: working with our allies on gold. I will return to that point in a moment.

These measures now have a heightened sense of importance, given the very recent developments. If it is the case that the Wagner Group is now effectively based in Belarus but will still operate via Moscow in many of the countries, as we are seeing, this means that these measures will be even more important.

Before I close, I want to ask the Minister about discussions with our allies. He has heard me referencing the UAE before when it comes to financial relationships. My understanding is that the Wagner operations are now likely to be based out of Minsk, although there is uncertainty about the location of Mr Prigozhin. Let us take that as a fairly reasonable assumption that the operations will still be in place.

The Minister knows about my interest in Sudan. My understanding is that the Kush project, a gold project in Sudan that has been part of the source of the Rapid Support Forces there, has been a joint project between Russians and Emiratis where the Wagner Group has been operating under contract. That has provided—the concern is that it continues to do so—a revenue stream for one of the warring parties in Sudan. My understanding is that the Kush project and investments are, in effect, still being banked through the UAE.

When it comes to restrictions on transferable securities or money market instruments, I would be grateful if the Minister could be clear that this is on the radar of the FCDO in our discussions with our friends in the UAE. These measures will not be effective at directing targeted measures towards the Belarus officials—and now, the Wagner Group—if they are still able to operate with impunity, in effect, in crisis areas such as Sudan. I know that the Minister will not be able to respond to me in detail today so I would be happy for him to write to me with specific regard to the Kush for Exploration and Production Company.

The Minister knows my view on the proscription of Wagner. I will not ask him about that because I know what he will say in response but, now that Belarus is at the eye of the internal issues in Russia and given the impact in Africa, these points will be of heightened importance. I would be grateful if the Minister could respond to them. In the generality, breadth and widening of the scope, he knows of our support.

--- Later in debate ---

[Lord Collins of Highbury (Lab)]

My Lords, I was mid-flow. I was making the point about the need for strong enforcement and investigation, primarily to act as a deterrent to make sanctions more effective. My honourable friend Stephen Doughty raised this issue in the other place. He said that, according to records on the OFSI’s website, no financial penalties appear to have been issued since September 2022. In response, the Minister, Anne-Marie Trevelyan, said that she would write about the effective implementation. As the noble Lord, Lord Purvis, mentioned, she said that the

“OFSI has issued £20 million in fines so far”.—[Official Report, Commons, Third Delegated Legislation Committee, 26/6/23; col. 6.]

I am not quite sure what period she meant. She indicated that she would write to my honourable friend but I would like the Minister to respond with the details not only in his response tonight but on an ongoing basis. Parliamentarians should not only be informed but use the information about enforcement in a much more public way to ensure that it is seen that we take the sanctions seriously and that we are pursuing and implementing them, thereby ensuring that the information acts as a proper deterrent. I hope that we can address this issue. That concludes my comments; I look forward to the Minister’s response.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I am grateful to the noble Lords, Lord Collins and Lord Purvis. I note that the noble Lord, Lord Purvis, informed me and the noble Lord, Lord Collins, that he is unable to join us as he is speaking on the next group of amendments in the Chamber. That said, I thank both noble Lords once again for their strong support for the Government’s position. I am sure that they would both acknowledge that we are constructively taking on the suggestions and practical proposals put forward in these debates to further strengthen what we are doing.

With the noble Lord’s indulgence, I will mention briefly the situation regarding Yevgeny Prigozhin, as his whereabouts and so on were raised. I am sure that noble Lords have followed the news that Mr Lukashenko has confirmed that the head of the Wagner Group has arrived in Belarus. Mr Lukashenko has also echoed comments made by Mr Putin that Wagner mercenaries should come to Belarus under security guarantees offered by him and Mr Putin. We have seen no indications that any Wagner mercenaries have so far relocated to Belarus but the prospect of their doing so cannot be ruled out. We are working closely with key NATO allies. As President Duda of Poland and the NATO Secretary-General, Jens Stoltenberg, have stated, the presence of Wagner mercenaries in Belarus is an extremely worrying development. Of course, I will keep noble Lords informed about that, but I thought it appropriate to mention it right from the start.

I will seek to answer most, if not all, of the questions raised. I take on board the final point raised by the noble Lord, Lord Collins, about transparency and ensuring that not just we in the Chamber but the public are assured that the actions we are taking are resulting in direct sanctions against those who seek either to act against the sanctions or to circumvent them. This instrument widens the scope of what we will be able to do going forward. Specific provisions in the sanctions proposal that we put forward will allow us to take further action. The broadening element of the sanctions will certainly allow us to act more quickly and with greater agility. As I said in my opening remarks, it will also allow us to act to take on board not only the principal individuals but those who may be associated, either by family or business, with those in Russia and Belarus who are subject to these sanctions.

To take some of the questions, the noble Lord, Lord Purvis, asked about resourcing and staffing. The Office of Financial Sanctions Implementation has doubled in size this financial year and continues to grow to meet the challenges of the sanctions introduced. The recruitment of new permanent staff continues following the Chancellor’s announcement in March about doubling that department’s size. In its annual report, released on 10 November 2022, OFSI said that it is scaling up to over 100 full-time employees by the end of 2022, accelerating and enhancing the ambitious transformation programme. If there are more up-to-date figures during the course of this year, we will, of course, update.

The noble Lord, Lord Collins, rightly asked about the export ban on goods and technology related to chemical and biological weapons. Of course, we continue to review all our sanctions, which are designed to evolve over time to maintain effectiveness and apply increasing pressure. The export of goods and technology related to chemical and biological weapons that is now in place is designed to replicate measures that we have already taken against Russia. This will ensure that we prevent the possibility of such routes being circumvented via Belarus in the event that Russia tries to exploit any potential avenues. I take the noble Lord’s point about the importance of acting with greater agility and dynamism. That is why I go back to the broad nature of the sanctions provisions in terms of the structure that we have proposed.

On the issue of circumvention, the noble Lord, Lord Purvis, asked about a particular entity. I can share with noble Lords that we are engaging with third countries to close down routes that Belarus—and Russia, for that matter—could potentially use to circumvent our sanctions. The noble Lord may be aware that I was in the UAE recently. Of course, Russia’s illegal invasion of Ukraine and the issue of sanctions were discussed. Noble Lords may be aware that, on 31 March, the Central Bank of the United Arab Emirates announced that it would cancel MTS Bank’s Abu Dhabi licence, taking into account the sanction risk associated with the bank after its designation by the UK and the US. These latest measures on Belarus are also designed to close down potential avenues for circumvention. I mention that because it is a practical example of how countries are taking action more broadly.

The issue of Wagner in Africa was also raised. We are aware of the US Treasury’s announcement on Wagner Group sanctions on 27 June. We have repeatedly highlighted Wagner’s destabilising role in Mali and other parts of Africa. However, we need to look at this and scrutinise it closely; it is an evolving situation, and the events over the weekend demonstrably showed how quickly things can change on the ground. We are analysing the impact of the events of last weekend.

The noble Lord, Lord Collins, raised the issue of media freedom, freedom of expression and unintended consequences. Of course, the UK is committed to international law, upholding freedom of speech and open, transparent and independent media. We refuse to use information in the same callous way as those in Russia and Belarus. We shall continue to hold ourselves to the highest standards, and we have demonstrated this leadership. I take on board the noble Lord’s point about ensuring that there are no unintended consequences but, as we keep these sanctions under review, we will ensure that in any such cases, if they are brought to our attention, any unintended consequences of these sanctions are put right.

There was a broader issue of how we respond to those who perhaps feel that the sanctions provide limited assistance on the humanitarian front and on food security. We continue to make the point that there are humanitarian provisions in all the sanctions, including on the issues of food security. To be clear, and for the record, the challenges that the UN-designed Black Sea grain initiative faces and the limitations that we see are not down to the sanctions. It is Russia that continues to limit the number of vessels that are taken out. Recently, when I was in Turkey, that was a key point of our focus and our exchange with key colleagues.

The noble Lord, Lord Collins, raised the issue of human rights and international law, which I have covered. The disinformation issue will be ever evolving, and we need to remain vigilant to how information is used, or how disinformation is utilised by those in Belarus and Russia.

The noble Lord, Lord Collins, also raised potash. This SI has no impact on potash production, but the import of Belarusian potash has been prohibited since August 2021. That is not the cause of the increased cost of food since Mr Putin’s invasion. I have already covered the points that the noble Lord raised on chemical weapons.

We are always looking at how we can strengthen the resourcing and effectiveness of our enforcement. On 13 March, my right honourable friend the Prime Minister announced a new economic deterrence initiative to boost our diplomatic and economic tools to respond to hostile acts by current and future aggressors. With funding of up to £50 million over two years, the EDI will improve sanctions implementation, as well as transparency and enforcement. The noble Lord, Lord Collins, raised that important point.

To conclude, I am again thankful to noble Lords for their participation, but I am particularly grateful to the noble Lords, Lord Collins and Lord Purvis, for their strong support and that of their respective parties for the Government’s actions. That yet again sends a united message, in this instance to Belarus and to Mr Lukashenko directly, that we will act together and in unity.

It is firmly in the interests of the UK and our allies to continue supporting Ukraine in the face of Russia’s assault and to impose a real cost on Mr Putin and his supporters, including other countries, for his flagrant attack on the international rules-based order. This enhanced package of sanctions will restrict Mr Lukashenko’s ability to support Mr Putin’s war and any efforts to circumvent the unprecedented package of international sanctions already imposed on Russia. We are grateful for the solidarity across Parliament for the actions that we have taken in response to the invasion to date. I assure the Committee that we will continue to work co-operatively and to update the House accordingly.

Motion agreed.

Situation in Russia and Ukraine Recovery Conference

Lord Ahmad of Wimbledon Excerpts

Monday 26th June 2023 Lords Chamber

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, with the leave of the House, I shall now repeat a Statement made in the other place by my right honourable friend the Foreign Secretary on the situation in Russia. The Statement is as follows:

“The long-running feud, played out in public, between Yevgeny Prigozhin, with his Wagner Group, and the leaders of the Russian armed forces reached a peak over the weekend. On 10 June, Russia’s deputy Defence Minister said that ‘volunteers’ fighting for Russia must sign contracts with the Russian Ministry of Defence by 1 July. Prigozhin announced immediately that his personnel would refuse to do so.

We—along with many Members of this House, no doubt—had been following closely the open escalation of rhetoric from Prigozhin. Last Friday, he denounced Russia’s military leadership, accusing them of bringing ‘evil’ on the country and of invading Ukraine for their own personal benefit. He drove a coach and horses through President Putin’s case for war, saying: ‘The war was needed for Shoigu to receive a hero star … The oligarchic clan that rules Russia needed the war’. Prigozhin added, and I stress that I quote him directly: ‘The mentally ill scumbags decided: “It’s OK, we’ll throw in a few thousand more Russian men as cannon fodder. They’ll die under artillery fire, but we’ll get what we want”’.

In the early hours of Saturday, Wagner forces entered the city of Rostov-on-Don in southern Russia and Prigozhin announced that he would march on Moscow. This finally drew a response from Putin, who accused Prigozhin of an ‘armed rebellion’ and promised ‘tough’ action and punishment. Wagner troops promptly advanced more than 500 miles northwards towards Moscow, before Prigozhin abruptly called off his operation and announced that Wagner would return to its bases. Having condemned him as a traitor in the morning, Putin pardoned Prigozhin in the afternoon, when a Kremlin spokesman announced that no charges would be brought.

The Government, of course, consider that this is an internal Russian affair. Of course, the leadership of Russia is a matter exclusively for the Russian people, but everybody should note that one of Putin’s protégés has publicly destroyed his case for the war in Ukraine. Prigozhin said on Friday that ‘there was nothing out of the ordinary before 24 February 2022, the situation was frozen with exchanges of military action and vicious looting’ by the Russian side. He also said that Russia’s defence ministry is ‘trying to deceive both the President and the nation … that there was incredible aggression from the Ukrainian side with NATO support ready to attack Russia’. The Russian Government’s lies have been exposed by one of President Putin’s own henchmen.

The full story of this weekend’s events and their long-term effects will take some time to become clear, and it is not helpful to speculate. However, Prigozhin’s rebellion is an unprecedented challenge to President Putin’s authority and it is clear that cracks are emerging in Russian support for the war. I, of course, hold no candle for Prigozhin or his forces; they have committed atrocities in Ukraine and elsewhere. But he has said out loud what we have believed since the start of Russia’s full-scale invasion: that this invasion was both unjustified and unprovoked. The events of this weekend are an unprecedented challenge to Putin’s authority, with an armoured column approaching his own capital city.

As the situation unfolded, the Government monitored and responded to developments carefully. I was briefed on Friday evening and again regularly throughout the weekend by officials. On Saturday, I chaired a COBRA meeting on the situation. We have also been in close touch with our allies. On Saturday, I spoke to Secretary Blinken and my G7 colleagues, and I have been in touch with other regional partners. My right honourable friend the Prime Minister spoke to President Biden, President Macron and Chancellor Scholz on Saturday afternoon.

Despite these internal developments in Russia, Putin’s bloody war in Ukraine continues. The Ukrainians fight for their survival, and our Ukrainian friends are mounting a determined counteroffensive and steadily clawing back their territory. We will not be distracted from our work to support Ukraine’s self-defence and subsequent recovery. This weekend’s events show that it is Ukraine and its partners, not Russia, that have the strategic patience and resolve to prevail. At last week’s Ukraine Recovery Conference, we sent a clear message that we will stand with our Ukrainian friends not only as they resist Putin’s onslaught, but in the subsequent peace. Now that Russia’s leadership cannot justify this war even to each other, the only rightful course is for Putin to withdraw his troops and end this bloodshed now. I commend this Statement to the House.”

My Lords, that concludes the Statement.

--- Later in debate ---

[Lord Purvis of Tweed (LD)]

My Lords, from these Benches I also thank the Minister and the Foreign Secretary for the Statement he gave in the House of Commons. As the noble Lord, Lord Collins, said, the people of Ukraine will know that there is unanimity across all corners of the Chambers in our Parliament in our continuing support for their steadfastness. I also associate myself with the questions that the noble Lord, Lord Collins, asked regarding the reconstruction and recovery conference.

Notwithstanding the reports that the West’s intelligence services may have known for a number of weeks that a move from the Wagner Group was imminent, or indeed that Russian intelligence services either knew about it and did not tell Putin or did not know about it themselves—we shall no doubt learn—the weekend’s events were extraordinary to observe. As the Minister rightly said, they are at the very least a very significant counternarrative to the Putin regime’s suggested reasons as to why the illegal invasion of Ukraine took place.

Secretary Blinken said yesterday that US officials spoke to their Russian counterparts at the weekend concerning the safety of US nationals. I am glad that the Statement referred to the fact that COBRA had been convened, but will the Minister inform us whether there has been direct communication with Russian officials by British officials to stress the need for the safety of British nationals within Russia? On a number of occasions the Minister has called for awareness by all British nationals within Russia for their own safety and security, but when there is chaos and internal division on the scale that we saw at the weekend this must heighten concern for all those British nationals who are living in Russia.

A strong Putin has clearly been a menace to UK interests; a weakened one is a real danger. Whatever the motive of the terrorist Prigozhin’s actions, Putin’s sovereignty as leader of his country is now doubted and his position is unquestionably weakened. As the noble Lord, Lord Collins, has highlighted, the jarring juxtaposition of his calculation that Ukraine would fall within 48 hours and his now having to operate defences for his own capital draws a stark contrast between the resilience of the Ukrainian people and the weakness of Putin’s regime.

Given Putin’s positioning on Belarus and the use of President Lukashenko as what an opposition leader has called a postman between him and Prigozhin, and the belligerent language on the position of nuclear weapons, it is even more important to ensure that dialogue restarts on the nuclear states and the posture that they all have.

Can the Minister reassure me that the UK will continue to seek dialogue from all nuclear powers? If a state with such a nuclear arsenal as Russia can be shaken by an internal mutiny of this scale, it must concern the entire world. I agree that there is little to be gained in speculation on what comes next, but as Ed Lucas said on Radio 4 yesterday in a very powerful interview, we must accelerate discussions on what may be a post-Putin scenario, because, as some observers have said, the situation would not necessarily be better. As obvious cracks exist in his leadership, and how deep and far they will go we do not yet know, one thing for certain is that things will not be the same. Prigozhin and Putin consider themselves masters of the dark arts, but they have both miscalculated, which could be a danger not only to Europe but to the wider international community.

I shall repeat what I have done every month since last February—to call for the proscription of the Wagner Group—but in the context of what seems to be now a clear approach to absorb Wagner into the Russian military, this is inevitably going to be much harder. What is the Government’s assessment of the Wagner Group, whether it is now formally part of the Russian state and how it will operate in Africa? The Russian Foreign Minister said today, in perhaps classic threatening terms, that it will continue its role in Africa as “instructors”. Can the Minister give an update with regards to our assessment from working with other partners in Africa on the likely implications of the impact of the Wagner Group?

Finally, I commend the Minister for his work, and that of Foreign Office officials working with our partners, in continuing discussions on the full-scale recovery and reconstruction of Ukraine, which will be necessary for the long term. Can he reassure the House that oversight, accountability and scrutiny in respect of some of the eye-watering sums that will be required for reconstruction are necessary, and that the Ukrainian Parliament, the Verkhovna Rada, representing its people, will be at the centre of ensuring that this reconstruction will be delivered in an accountable, transparent and efficient manner? If anything is clear, it is the unity of the Ukrainian people, led now by an increasingly transparent and efficient Government. That cannot be put at risk, because it is the clearest contrast with the instability and lack of consistency in the Russian forces. I hope that that is a lesson that we can learn from the conference, to ensure that the reconstruction is done in a clear and accountable way.

[Lord Ahmad of Wimbledon (Con)]

My Lords, once again, I thank the noble Lords, Lord Collins and Lord Purvis, for their strong support of the Government’s position. As my right honourable friend the Foreign Secretary said, this is not something we share just from the Dispatch Box. My right honourable friend and I myself when I have represented the UK Government in our meetings—specifically on reconstruction in the Council of Europe as well as in associate meetings with the European Union—have made it clear in any public demonstration of support for Ukraine that it is across the board, across both Houses and all parties, and we stand as one. That message has been very clearly and warmly received by our Ukrainian allies and partners.

In thanking noble Lords, I shall pick up on some of the key issues and areas that have been raised by them. The noble Lord, Lord Purvis, raised the important issue of transparency and ensuring that parliamentarians in Ukraine are also involved. It is right to have that kind of scrutiny that any Parliament should give to the Executive. In the case of President Zelensky, that was in his mandate. It seems a long time ago now, in 2019, when he took on the mandate as president, and that was one of his key priorities. I am sure that, as the war effort continues and as Ukraine sustains and strengthens its position, and ultimately as we look towards reconstruction, that will be a very valid role for the Ukrainian Parliament.

On the Ukrainian recovery conference, I thank both noble Lords for their strong support of the Government’s efforts. There were more than 1,000 attendees—a mixture of private sector, where the aim was, but also countries at government and Foreign Minister level, and others. There was a broad level of attendance. Both noble Lords often ask me about the importance of civil society, and that was also present. Overall, there was a large sum. Although it was not a pledging conference, once you tot up all the commitments, there was about £60 billion in terms of support. There is the immediate shortfall, which was required. I pay tribute to our colleagues, including those in the European Union. Commissioner von der Leyen made it clear how that gap would be plugged—but that was just for the next 12 months. That shows the immediate need and, of course, the importance of ensuring that we are in it for the medium and long term. I assure the noble Lord, Lord Collins, that that is exactly the message that we are delivering to our Ukrainian friends.

On asset seizures, again, the noble Lord, Lord Collins, and I have talked about this very clearly and consistently. Of course, we are monitoring and working with our partners to ensure that those responsible, which is the Russian Government against the people of Ukraine, are held accountable. It is estimated that currently, because of the various seizures that we have had, circa £18 billion is held just under UK territorial control. We are looking at key options, since it is an important but complex area, to see how those assets can also be utilised—and, of course, we are working with our key partners. There has been new legislation enabling sanctions on Russia to be maintained until Moscow pays compensation to Ukraine. We are looking at the development of a route to allow sanctioned individuals to donate frozen funds to Ukrainian reconstruction and, under the Russia financial sanctions regime, new requirements for sanctioned individuals and entities to disclose assets that they hold in the UK, as well as new requirements for those holding assets in the UK on behalf of the Russian Central Bank, the Russian Ministry of Finance or, indeed, the Russian National Wealth Fund, to disclose them to the Treasury. These are all steps being taken forward to ensure a full assessment of the money that we hold so that that money can also be utilised towards the recovery.

The noble Lord, Lord Collins, asked a specific question about BII and its predecessor. First, I assure him that the level of investment in BII’s core markets, which include Africa, south Asia, south-east Asia and the Caribbean, will not be affected by the Ukrainian mandate. That is important to recognise. However, the BII is working with key partners to ensure that its expertise in investing can also focus on Ukraine as well. BII has recently also signed an MoU with the European Bank for Reconstruction and Development to create the EBRD-G7 DFI-EDFI Ukraine investment platform, which will act as a basis for how we work through the BII.

On the issue of full support for the fight for democracy, noble Lords alluded to the widening of the alliance and ensuring that all the countries beyond the partners are involved. It is encouraging that, well beyond a year into the conflict, we have seen votes at the UN consistent with key countries across north Africa and, indeed, the Middle East, changing their position in support of Ukraine. We very much welcomed from the Middle East the first visit to Kyiv of Foreign Minister Prince Faisal, who also pledged one of the largest donations by any country in humanitarian relief. We will continue, as I did recently through my visit to the UAE, to strengthen and broaden the alliance, ensuring that we are in it for the long term, not just from the United Kingdom, US and European perspective but across the piece.

Undoubtedly, there are challenges being felt. The noble Lord, Lord Purvis, also raised the issue of Africa, which is an important partner. We are talking to them as to how the events over the weekend impacted their operations. We are of course monitoring very closely, and all agencies are on this. Of course, there is a limit to what I can share, but it is notable that, when African leaders were in Kyiv, even then Russia threw a missile at Kyiv. What was that supposed to achieve? The African leaders, including the president of South Africa, saw for themselves what was happening.

Finally, in the closing seconds of responding to Front-Bench contributions, I can say that I spoke to my noble friend Lady Goldie today, and we will look to arrange an appropriate briefing for key Peers from your Lordships’ House. We regard highly the valuable insights that noble Lords bring to this debate.

[Lord Ricketts (CB)]

My Lords, I too congratulate the Government on the success of the reconstruction conference last week. The timing of that conference looks even more prescient this week than it did last week. The spectacle we saw last weekend must surely have shown the whole world that Putin is a weak, indecisive leader at the head of a corrupt and chaotic country. I completely agree with the Government that the leadership of Russia is something for the Russian people, but our business is to ensure that Ukraine grows in confidence and strength in the months ahead. In that context, will the Minister reassure us that the ambassadors in all those non-aligned states that sat on the fence at the time of the invasion of Ukraine can now be persuaded that this would be a very good time to come off that fence and give their support to Ukraine, with the aim of shortening Putin’s war?

I have one final point. With the Vilnius summit of NATO coming up very shortly, will the Government be working to open up more the prospect of Ukraine joining NATO one day?

[Lord Ahmad of Wimbledon (Con)]

My Lords, the noble Lord speaks with an extremely valuable insight into world events, and I thank him for his constant insights and advice, which are always welcome. I can give him the reassurances he seeks. We have been working diplomatically through the United Nations, and directly and bilaterally with key countries, particularly across south Asia, the Middle East and north Africa. Are we seeing results? Yes, of course. To give just one example, the UAE is an important partner of the United Kingdom for various reasons; most notably, we have seen the UAE’s strong support at the UN Security Council. More recently, we have seen countries such as Morocco also change their position. I am not saying that there is not more work to be done, but clearly the diplomatic effort, along with all the other areas that we are working on, is seeing results.

NATO expansion is a matter for all NATO countries, but it is very clear from the applications we saw from Finland and Sweden that, even before the weekend’s events, all countries now recognise that Russia is a real challenge to their security. However, it is very clear, and we have said it time and again in debates, that the Russian Government and military are themselves fragmented. Indeed, as it said in the Statement I repeated, we have seen through Yevgeny Prigozhin’s own statements that he, as someone who has contributed to and directly supported the Russian war on Ukraine, is saying that they are fragmented. I think the next few hours, days and weeks will be an important determinant of what happens, but I make very clear, and I am sure all noble Lords agree, that our intent right from the start was Ukraine’s security. As my right honourable friend the Foreign Secretary made clear, the implosion of Russia and its instability is to no one’s benefit.

[Baroness Fall (Con)]

My Lords, I welcome the recovery conference and congratulate the Government on it. One thing we can do to help Ukrainians right now is ensure that there is not a lost generation of young people who cannot return and be the future leaders of their country. Those under our care should be going to school; we owe them that education. How many under-18s are with us? Are they going to school? For those who are not going, what are we doing to make sure that they go? It was certainly an extraordinary weekend, but I have some worries. I echo the words of the noble Lord, Lord Purvis: we have a nuclear power at war with its neighbour and now a nuclear power that seems to be at war with itself. I hope that, as a member of NATO, we are having conversations about the situation, making sure that that arsenal is at least being monitored by NATO.

[Lord Ahmad of Wimbledon (Con)]

On her second point, I assure my noble friend that we are of course working with key partners, NATO and the G7. We are all acutely aware and deeply concerned about the situation in Russia. As I said in my response to the noble Lord, Lord Ricketts, an unstable and imploding Russia is to no one’s benefit. As I am sure my noble friend recalls, prior to the war starting in February, well over a year and a half ago, the Russians themselves regularly signed the NPT. They have signed up to it, yet here was an aggression by a P5 member, a nuclear power, a founding member of the United Nations, against another country. The challenge remains, both diplomatically and, importantly, around how we come together to face the overall threat. Indeed, we have seen President Putin himself at times suggest the use of some kind of tactical weapons. We need to keep a watchful eye on this and be very much in a state of readiness in every respect.

On my noble friend’s first question, we have a long tradition of providing support and protection to many from across the world, and Ukraine is no exception. Well over 140,000 Ukrainians have come to the UK. My noble friend makes a very valid point about education and there being no lost generation. I know many are attending local schools. If there is further data to share, I will ask my colleagues in the appropriate department to share that with her.

[Baroness Smith of Newnham (LD)]

My Lords, I do not think I heard the Minister respond to one of the questions from my noble friend Lord Purvis, which was about proscribing the Wagner Group. Like my noble friend, I have raised this issue in the past, and I know the standard Front Bench response is that we cannot talk about individual cases while they are being considered. But if not now, when? This is not just a question about personnel fighting the war in Ukraine on behalf of Russia; it is about activity in Africa, and it is about gold and about riches. Surely now is the time to proscribe the Wagner Group.

[Lord Ahmad of Wimbledon (Con)]

My Lords, sometimes a non-answer contains the answer itself. The noble Baroness is correct that I cannot speculate about what may or may not happen. What is very clear, as we have said repeatedly from this Dispatch Box, is that the Wagner Group is a mercenary force. There is an irony here, in that the very mercenary force that sought to plug gaps across Africa and in Ukraine, and to provide its support in other parts of the world where there was great instability, is now acting against its own so-called master.

As to who was the master and who was not, that remains to be determined. We have seen inconsistent statements, including from the Russian Administration themselves—Mr Putin and Mr Lavrov—as to the connection with the Wagner Group. That has become more transparent with the exchange of words that has happened recently. I assure the noble Baroness that we keep all elements under consideration. When it comes to sanctions, a great number of the Wagner Group’s members and the organisation as a whole are subject to sanctions. We always note what noble Lords say in this House and what honourable Members say in the other place, and it is very clear that the Wagner Group is no one’s friend.

[Baroness Falkner of Margravine (CB)]

My Lords, the noble Lord mentioned several times that he has been speaking to the UAE. Picking up the theme of the Liberal Democrat Benches, we know that the UAE has a very malign influence in aiding and abetting the financing of the Wagner Group’s activities across a range of countries, not least in Africa. We also know that it has had the same malign influence in busting Iran’s sanctions as well. The noble Lord, Lord Ricketts, raised the Government’s approach to working with allies. When are we going to be able to have those candid conversations with countries that we consider our allies but that nevertheless, in the murky shadows of international finance, seem to defy all our interests?

My other brief question is on the investment conference. I applaud the efforts of the Government there, but can the Minister say when our London war risk insurance framework will become a little more substantive than just a framework, because the outcome of that on derisking measures to increase investor confidence was quite disappointing for Ukrainians?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I cannot agree with the noble Baroness in her depiction of our relationship with key partners, including the UAE. They are important partners and we have candid and constructive engagement with them, as I have done recently. The circumvention of sanctions has been an issue which has seized many noble Lords—I know the noble Lord, Lord Purvis, has repeatedly asked this question—and I assure the noble Baroness that we work directly, bilaterally and collectively to ensure that, in those areas where sanctions are being circumvented, those loopholes are focused upon and can be closed. It is to no one’s benefit if there are indirect ways in which the Russian machinery can be financed.

I will look into what the noble Baroness said about inward investment, et cetera, but in our interactions with the Ukrainian authorities at the most senior level, and in my direct interactions, there has certainly been no reservation along the lines of what she is suggesting. However, if she has further details to share then I will of course look into them.

[Lord Skidelsky (CB)]

My Lords, the noble Lord, Lord Purvis, made an important point about the importance of thinking about a post-Putin future. I have never thought that Putin either can or deserves to survive this adventure on which he has embarked, but I am interested in what is meant by such phrases as

“withdraw his troops and end this bloodshed now”,

and a remark from the Labour Front Bench about the importance of “winning the war”. What exactly do these things mean? It seems to me that the black box here is Crimea. Is it assumed that winning the war and withdrawing Russian forces means going back to 2014 frontiers and that that is the purpose of winning the war? If that is the case, what legitimacy do the Government expect a post-Putin Government to have in Russia? In other words, if this unjustified invasion ends in the complete defeat and humiliation of Russia, what prospects are there of a stable future for any successor Government in Russia?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I do not believe that I or any member of His Majesty’s Government or His Majesty’s Opposition have ever said that the end objective is instability and the implosion of Russia. I have stated very clearly that that is in no one’s interest. When the Statement says that the war can be ended now, that is exactly what it means. Mr Putin can make that call to the Russian troops and to others, including the mercenary Wagner Group, if they are supporting them. Let him make that statement. A very clear peace plan has been articulated by President Zelensky and we have made it clear that, ultimately, that negotiation begins and ends with Ukraine. As allies and friends of Ukraine, we stand united in ensuring that those objectives are delivered.

There has been a consistent position. It is not often that I can quote His Majesty’s Opposition, but we are very much at one on the end objective, as are the Liberal Democrat Benches. Both sides can speak for themselves, but it is a consistent position. The war can end now if Mr Putin withdraws his troops from the eastern Donbass and Crimea, which was illegally annexed. Ultimately, the return of all sovereign territories includes Crimea. However, that negotiation and peace process is ultimately the responsibility of Ukraine; as a partner and ally of Ukraine, we will be led by its objectives.

[Baroness Helic (Con)]

My Lords, the potential destruction of the Zaporizhzhia nuclear plant, Europe’s largest, which is currently occupied by Russia and reportedly mined, is deeply concerning. The Kremlin has already used the plant to issue severe threats to Ukraine, raising the stakes in the region. Despite the efforts of the IAEA, negotiations with Russia to establish a safety perimeter around the plant have been unsuccessful. Does my noble friend agree that, after this weekend’s drama, it is even more urgent to address this issue and that no effort should be spared to create a safety perimeter around the plant? What efforts are we making to ensure that this happens?

[Lord Ahmad of Wimbledon (Con)]

I agree with my noble friend. As others have expressed, this weekend’s events have made very clear the instability within Russia and the nuclear challenge, through both threats and that particular plant. We are looking at Zaporizhzhia’s positioning and have seen the insecurity and instability around it. We continue to work directly to support the efforts of the International Atomic Energy Agency, and I know that my right honourable friend the Foreign Secretary has been speaking directly to Mr Grossi. From our perspective, which is led by the objectives of Ukraine, Russia must immediately restore full control of the ZNPP to the competent Ukrainian authorities and, on the issue raised by my noble friend, ultimately ensure that the IAEA has full access to all nuclear facilities to make sure that safety and security measures can be put in place. We welcome its recent confirmation that there is no immediate risk to the plant, but that is a moment in time; security and stability must be returned and the IAEA must be given unfettered access.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I offer Green support to the comments from both opposition Front Benches on support for the Ukrainians.

I will pick up the questions from the noble Lord, Lord Purvis of Tweed, and the noble Baroness, Lady Fall, on nuclear weapons. It was rather covered over by the weekend’s events, but late last week some thinkers with very close links to President Putin, including Sergey Karaganov, chair of the Council on Foreign and Defense Policy, a think tank, and an adviser to Putin, were on the record as making a number of very concerning comments about the so-called need to lower the threshold for the use of nuclear weapons to win the Ukraine war. That was followed by our being reminded that we cannot know whose hands those nuclear weapons will be in next week, next month or next year. The Minister referred to the nuclear non-proliferation treaty. There is an immediate concern to understand what is happening with those nuclear weapons, but is real government thought also being put into the fact that the world cannot be safe until it has no nuclear weapons?

We want to focus on the Ukrainians as well, so I have a very specific question about the Ukraine Recovery Conference. There is no reference in the Statement to demining. We have seen reports recently of farmers, in particular, who have been forced to patch together their own demining machines from tractors and lorries and take it upon themselves to clear their fields so that they can let their cows out and plant their crops. Is the Minister confident that enough support is going into that demining effort? Will he either tell me more about it now or perhaps write to me on it?

[Lord Ahmad of Wimbledon (Con)]

We have had different perspectives on nuclear weapons over history, but it is very clear that this instability in Russia, as several noble Lords have said, is to no one’s benefit. The instability and insecurity of Russia lends itself to real concerns over nuclear weapons. I assure the noble Baroness, without going into further detail, that we are working with all our key allies and partners from an intelligence perspective and in other areas. We have seen statements by other concerned Governments, including China today, so I assure her that we are not just monitoring but keeping vigilant on this issue.

The noble Baroness talked about statements by those close to Mr Putin. Even more worrying is that Mr Putin has at times threatened the same, which lends itself to even deeper concerns over the issue. Events this weekend have only added to that deeper concern. It requires greater vigilance; we must ensure that we mitigate and take all the necessary actions that we can.

As I have stated repeatedly, it has never been the intention—nor should it be—to see instability within Russia. This instability has been perpetrated by Mr Putin; let us not forget what he has done to members of the valid Russian opposition. We have repeatedly seen sentences increased and he has suppressed the public protests that started when his illegal war against Ukraine took on new proportions through the invasion of east Ukraine.

On environmental issues more broadly, we are watching the impact of the dam, and the issue of demining is key. I mentioned in the Statement that some of the floating mines have come down the Dnipro river, but I can share with the noble Baroness that the HALO Trust, which we support and fund, has played a key role. It was represented at and spoke during one of the key panel sessions of the Ukraine Recovery Conference. I fully support the noble Baroness, in that I agree that mining has a direct impact on not only the long-term stability and security of the country but on its primary resource, agriculture. Let us not forget that half a billion people used to get grain from Ukraine, and it will take a long time before that is restored, even if the war were to end today.

Nova Kakhovka Dam

Lord Ahmad of Wimbledon Excerpts

Tuesday 13th June 2023 Lords Chamber

[Lord Harries of Pentregarth]

To ask His Majesty’s Government what is their assessment of the destruction of the Nova Kakhovka dam and the international response.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, at least 80 communities and 40,000 people are affected by flood water. Damage to homes, infra- structure and agriculture will affect thousands more. Our partners are working hand in hand with the emergency services to evacuate people and provide vital relief. We have also provided an additional £16 million to the United Nations and the Red Cross to help civilians, including those affected by flooding and others elsewhere in Ukraine in humanitarian need. To bolster efforts, we are also sending boats, water filters, pumps and waders to Ukraine.

[Lord Harries of Pentregarth (CB)]

I thank the Minister for his reply; it is particularly good to hear of the support the British Government are giving to those affected by the floods. My Question concerns a different aspect of the matter: adherence to the Geneva conventions. Article 56 of the 1977 Protocol 1, additional to the 1949 Geneva conventions, says that dams and nuclear sites must not be the object of attack if civilians are going to suffer. Over 170 nations have signed up to this, including Ukraine; Russia originally signed up and then withdrew ratification. Will His Majesty’s Government reaffirm the importance of adhering to that in a world where there are now so many dams and nuclear power stations?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I agree with the noble and right reverend Lord. The essence of all the Geneva conventions was to ensure that these important elements are protected during conflicts, so I very much support his sentiments. However, I remind the House that, as my right honourable friend the Prime Minister has said, our intelligence communities are still looking at the incident, and it remains too soon to make a definitive judgment as to the cause.

[Lord Berkeley (Lab)]

My Lords, vast areas of Ukraine are now under water. Is the Minister aware that there is a big shortage of boats there, as he might expect? Will he work with me to try to repurpose some of the boats coming across the channel with so-called illegal immigrants, so that they can be reused in Ukraine, instead of being wrecked to stop them being reused in this country?

[Lord Ahmad of Wimbledon (Con)]

My Lords, the basis of what the noble Lord says is important: we need to ascertain what the needs of Ukraine are and to meet them. If boats are required, as I said in my first Answer, we will seek to provide them.

[Lord Stirrup (CB)]

My Lords, the consequences of the breach of the Nova Kakhovka dam have been described as “generational” in their impact. Does the Minister agree that this underlines the importance of next week’s Ukraine Recovery Conference and the need for it to address ecological issues as well as infrastructure and economic development matters?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I totally agree with the noble and gallant Lord. In preparation for this Question, I saw the mapping made of the flooding, which is on both sides of the Dnipro river; half is on the Russian side. Even organisations such as the ICRC cannot access the area, and people are suffering. I agree with the noble and gallant Lord that there are issues concerning agriculture and the natural habitats, which will be impacted, but as the waters recede we will be able to make a better assessment. However, we will not be able to make that assessment unless Russia allows access to its side of the river.

[Lord Purvis of Tweed (LD)]

Further to the noble and gallant Lord’s question, it is very welcome that London is hosting the second Ukraine Recovery Conference jointly with Ukraine, but if that is to be successful for the state’s future, proper scrutiny, oversight and accountability of any private sector reconstruction work for Ukraine will be necessary. The Ukrainian Parliament, the Verkhovna Rada, is not included in the agenda for the recovery forum. Does the Minister agree with me that Parliaments and their scrutiny are very important for effective, sustainable recovery after any conflict? Will he ensure that there is always an eye on proper parliamentary involvement in these fora?

[Lord Ahmad of Wimbledon (Con)]

My Lords, my understanding is that parliamentarians are also attending that conference. As the noble Lord will be aware, it is primarily aimed at the private sector and focused on reconstruction, but I note what he said.

[Lord Selkirk of Douglas (Con)]

Does the Minister accept that a lot of the water will be undrinkable?

[Lord Ahmad of Wimbledon (Con)]

I accept what my noble friend says. The challenge has been that, as the dam broke, pollutants and other substances such as oil and petrol contaminated the whole river. As I said to the noble and gallant Lord, Lord Stirrup, there are implications for both agricultural land and the ecological habitats along the river. The assessment is still yet to be made fully.

[Lord Browne of Ladyton (Lab)]

My Lords, I draw attention to my entry in the register of interests. Like many other parliamentarians, I am an ambassador for the Halo Trust. The breach in the Kakhovka dam is flooding extensive minefields and dislodging many thousands of landmines. In fact, Halo has cleared 5,000 landmines from that area in the last month alone. Looking ahead, as the noble Lord is constantly being invited to do, to 21 June and the Ukraine recovery conference, there can simply be no talk of reconstruction in Ukraine without first focusing on making the land safe from explosions. What steps are the Government taking to ensure that landmines and unexploded ordnance, of which there is an incredible amount in that country, are firmly at the forefront of delegates’ minds as they gather in London later this month?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I agree with the noble Lord. What is very evident, as he said, is that large sections around the dam and the river have been cleared of landmines. The United Kingdom Government have worked with the Halo Trust, and its CEO, James Cowan, will be addressing the Ukrainian conference on the specific issue of demining in advance of reconstruction in Ukraine.

[Lord Collins of Highbury (Lab)]

My Lords, I return to the question of agriculture. I know it is early days to undertake a full impact assessment, but can the noble Lord reassure us that our expertise will be used fully to support Ukrainian agriculture in the long and medium term? Will he ensure that the issue of the impact on agriculture is properly addressed at the Ukraine recovery conference?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I can give the noble Lord that assurance. In a previous Question, we talked about the importance of Ukraine’s supplying the world’s economies with grain. We have yet to see how this will impact, for example, the Black Sea grain initiative. The Dnipro river goes straight into the Black Sea, so of course there are implications. As the noble Lord, Lord Browne, pointed out, many mines have been washed through and that assessment has still to be made, but specific parts of the conference are allocated to agriculture. Half a billion people used to get their grain from Ukraine, so there is a major task ahead of us.

[Lord Hamilton of Epsom (Con)]

My Lords, further to my noble friend Lord Selkirk’s remarks about drinking water, is it right that this reservoir provided drinking water for Crimea, and what are the implications long term for that?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure my noble friend that we are seeking to make early assessments of the full implications. What is clear is that this provided water to many parts of Ukraine, including those areas currently occupied by Russia. Frankly, a full assessment cannot be made until we get full and unfettered access. I regret to say—I would be glad to be proven wrong—that I do not think we will be able to make that assessment until Russia does the decent thing and withdraws from Ukraine.

[The Earl of Devon (CB)]

My Lords, one of the perhaps unintended consequences of this tragedy is the recreation of considerable areas of wetland that previously had been drained. Will thought be given to the preservation of some of that wetland and the biodiversity that it might offer to the people of Ukraine?

[Lord Ahmad of Wimbledon (Con)]

Again, the noble Lord is correct. When we look at the devastation, many of the natural habitats and wetlands have been impacted. A full assessment has yet to be made but what is clear from early reports is that much has been damaged and impacted. Of course, areas are being damaged further downstream because of the pollutants being carried forward by the river, and there is the impact of the mines. The noble Lord is correct and I assure him that that will be very much part of the work of the international community. That is why it is necessary to involve the private sector at this time, next week, to make sure we can have a collective effort in rebuilding Ukraine.

[Lord Anderson of Swansea (Lab)]

My Lords, the Government should be congratulated on their initiative in convening the reconstruction conference next week. Has an attempt been made to estimate the cost of reconstructing the dam when conditions allow? It can only add to the costs of the damage Russia has caused, and of course add considerably to food prices and affect food availability in the developing world.

--- Later in debate ---

[Lord Ahmad of Wimbledon (Con)]

My Lords, on the noble Lord’s final point, of course, the developing world, particularly parts of north Africa, is severely impacted by the lack of grain supplies from Ukraine. On his earlier point, I have asked that specific question, and assessments are being made. According to an early assessment, the dam is irreparable and would require rebuilding. Then, of course, there is a timeline associated with that, which runs into not weeks or months but years. The other issue to bear in mind is that one side of the dam is in Russian-controlled Ukraine territory. A concerted effort will be required to ensure that, first and foremost, we see peace and see Russia withdraw, so that all arrangements can be put in place to rebuild the dam, which serves so many people across Ukraine and the wider region.

Kosovo and the Western Balkans Region

Lord Ahmad of Wimbledon Excerpts

Tuesday 6th June 2023 Lords Chamber

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, we are working closely with international partners to de-escalate the situation in northern Kosovo and encourage a return to dialogue. The noble and gallant Lord, Lord Peach, visited Kosovo on 30 May and met political leaders, the commander of NATO’s KFOR mission and other key actors. The Government use a number of diplomatic, programme and other tools to encourage and support crucial rule of law and human rights reforms across the western Balkans.

[Baroness Helic (Con)]

I thank my noble friend for his update and pay tribute to NATO soldiers, including our own. The incident which resulted in 30 NATO peace- keepers being injured appears to have been a co-ordinated attack supported and inspired by Belgrade, yet both the United States and the EU seem to have chosen to ignore Belgrade’s hand in this flare-up and have imposed, and threatened to impose, sanctions on Kosovo. It remains unclear what our Government’s position is on this matter. I would be grateful if my noble friend could clarify it.

I would also welcome a swift increase in the number of NATO troops in Kosovo. However, I am deeply concerned that right now in Bosnia-Herzegovina, where the threat of Kremlin-backed secession is real, our ability to deter any such act is wholly inadequate. What consideration has been given to increasing our contribution to NATO HQ in Sarajevo or to Operation Althea?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I believe I speak for the whole House when I join my noble friend in paying tribute to the incredible work done across the world by both NATO troops and those deployed through key missions. The situation in Kosovo is of course very alarming, although the latest report I have is that it is calmer. There is direct engagement by our key partners; we are working closely with the EU and the United States in this respect. Their representatives are on the ground speaking to both sides. We have also called for a four-step de-escalation.

Both sides have a role to play. Kosovo should perhaps now enable its mayors to work from locations outside municipal offices until such time as these issues can be resolved. Importantly, Serbia needs to reverse its decision to raise the level of readiness of its armed forces. The read-across to Bosnia-Herzegovina is very clear. Of course, I know that my noble friend engages consistently and extensively in that area. The UK fully supports EUFOR and KFOR in Kosovo; my right honourable friend the Minister for Armed Forces recently announced our continuing commitment to KFOR in Kosovo.

[Baroness Coussins (CB)]

My Lords, one recommendation from the inquiry into the western Balkans by the International Relations Committee was that the UK should actively help to preserve the large amount of evidence held by EULEX on conflict-related sexual violence in Kosovo. Witnesses suggested that it would be better safeguarded by the UN, or its loss would feed the continuing culture of impunity. Can the Minister say what has happened to safeguard this evidence and, in the current circumstances, what is being done to prevent further conflict crimes of sexual violence?

--- Later in debate ---

[Lord Ahmad of Wimbledon (Con)]

My Lords, as the Prime Minister’s Special Representative on Preventing Sexual Violence in Conflict, I assure the noble Baroness that we have taken these measures seriously. Some of the initiatives that we have taken, such as the introduction of the Murad code, do exactly that—protecting and sustaining the testimonies of those who suffer the most extreme violations to allow for successful prosecutions to take place. I myself have visited Kosovo twice, once in 2018—indeed, with my noble friend Lady Helic—and, subsequently, in 2019. We are engaging on the ground. The current situation is calm, but we want to ensure that there are no violations, and none that lead to the kind of crimes that we have seen in the past.

[Lord Anderson of Swansea (Lab)]

Does the Minister agree that the present brokerage is riding two horses simultaneously? On the one hand, he is trying to move closer to the European Union; on the other, he is following the traditional Serbian warmth in relations with Moscow. Does he see any hand of Moscow in the current disturbances?

[Lord Ahmad of Wimbledon (Con)]

My Lords, one thing is very clear in Kosovo and, as my noble friend said, in Bosnia-Herzegovina. When you visit on the ground, as I did last year in Sarajevo, you can feel and see the growing assertiveness of Russian influence in these key areas, which is very much in evidence. While we call for Russia to respect the sovereignty of these key nations, it is evident that those leading some of the Serb causes, such as Mr Dodik in the so-called Republika Srpska, are becoming ever more assertive. That is why the United Kingdom took steps to sanction such individuals.

[Lord Purvis of Tweed (LD)]

My Lords, the replenishment of KFOR is regrettably necessary, and I welcome the fact that the UK has announced that it is going to replenish the 80 personnel there. I commend the Minister on his commitment to peacekeeping forces, as demonstrated just before Recess at the event where he, I and the noble Lord, Lord Hannay, met peacekeepers of the UK contributions. Just two years ago, the contribution from the UK was over 400 personnel but, according to the UN Association, the UK is now 50th in the world for our contribution to global peacekeeping forces. Will he please tell his colleagues in the MoD that now is the time to increase the number of UK personnel able to be deployed for peacekeeping forces around the world?

[Lord Ahmad of Wimbledon (Con)]

My Lords, we take considered decisions on the deployment of UK forces for international missions in terms of our support for both NATO and the United Nations. I am proud of the fact that we have consistently been strong supporters of troop-contributing countries in the UN system—we are one of the largest contributors. We have troops who serve through various UN mandates as well. We look at the particular mandate to see what is required. The other thing to note is the strong technical and training support that the MoD and UK troops provide to many nations across the world, which is very much valued.

[Lord Peach (CB)]

My Lords, I declare my interest as the Prime Minister’s special envoy to the western Balkans. I very much support the Minister. As a frequent visitor to the region, I assure noble Lords that the United Kingdom’s role there is appreciated; we just do not always advertise it on Twitter.

We should thank our allies in NATO for keeping the peace for over 20 years. The quality of our contribution remains important. It is critical now to stop the violence and to de-escalate. We continue to support normalisation between Kosovo and Serbia, which takes many forms, and again we call for the Kosovo Serbs to be readmitted into security structures, particularly the police.

We must break the cycle of violence in the Balkans. We need to be alert, as a noble Lord has said, to the risk posed by Russia, exploiting the region as a second front through warfare by other means.

[Lord Ahmad of Wimbledon (Con)]

My Lords, there is little that I can add to the words of the noble and gallant Lord apart from thanking him for the incredible role that he plays on the ground. I believe that he has made four visits in the recent past to Kosovo. I agree with him that the United Kingdom has stood side by side with Kosovo as it seeks to find its place in the international world, and we continue to campaign for its global recognition as an independent nation. However, I also agree that we must ensure that what happened in the past is not repeated.

[Lord Collins of Highbury (Lab)]

My Lords, I welcome the FCDO’s role with France, Germany and Italy last week in their joint statement. The Minister referred to the EU-facilitated dialogue to normalise relationships. Can he tell us a bit more about how the UK is directly involved in supporting that dialogue? How closely are we working to ensure that it achieves its objective?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure the noble Lord that the current engagement is live; it has been taking place yesterday and today, and I will update the House on certain outcomes. We are working closely with both our US and EU partners in this respect, and recently my right honourable friend the Prime Minister attended the meeting of the EPC, where there was engagement on this important issue.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, does the Minister agree that the recent decision by the Committee of Ministers of the Council of Europe to accept the recommendation of the Parliamentary Assembly that Kosovo should join the Council of Europe is a step forward to developing Kosovo as a free, independent and democratic country?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I can confirm that His Majesty’s Government fully support that decision.

[The Earl of Sandwich (CB)]

My Lords, following on from the question from the noble Lord, Lord Collins, does the Minister not think that the election issue is the critical one? If we still have any influence outside the EU, we should bring the two Prime Ministers together to discuss those elections and make sure they happen.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure the noble Earl that our influence with our EU partners and other partners, across Europe and beyond, is substantial. Recently, my right honourable friend the Prime Minister and I engaged directly at the Council of Europe meeting. I was also at a recent meeting of the EU with Indo-Pacific nations, where we discussed co-ordination and strategy. Equally, I agree with the noble Earl on this issue; we are using our convening powers with key partners to ensure that both sides meet. We need inclusive elections. The conditionalities being set by the Kosovan Serbs are in some cases unrealistic, but inclusive elections are needed so that all people of Kosovo, irrespective of their background, culture or community, can be represented effectively.

Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023

Lord Ahmad of Wimbledon Excerpts

Thursday 18th May 2023 Lords Chamber

Moved by

[Lord Ahmad of Wimbledon]

That the Regulations laid before the House on 20 April be approved.

Relevant document: 38th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument). Considered in Grand Committee on 16 May.

Motion agreed.

Sudan: Civilian Population

Lord Ahmad of Wimbledon Excerpts

Thursday 18th May 2023 Lords Chamber

[Lord Alton of Liverpool]

To ask His Majesty’s Government what assessment they have made of the effects of the conflict in Sudan on the civilian population and of the number and wellbeing of displaced people.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, we are gravely concerned by the ongoing hostilities in Sudan. Innocent civilians are losing their lives and being subjected to the most terrible violence. The humanitarian situation has worsened dramatically, with the UN estimating that an additional 9 million people will need humanitarian assistance. Following the outbreak of violence, 740,000 people have been internally displaced within Sudan and more than 245,000 are now estimated to have fled to neighbouring countries.

[Lord Alton of Liverpool (CB)]

My Lords, I thank the Minister for that reply and concur with the figures he has just given the House—that nearly 800,000 people have joined the already 3.7 million people who are displaced in Sudan and another 120,000 fleeing to neighbouring countries, some of whom will end up in small boats making dangerous journeys. Will the Minister agree therefore to provide a written response to the more than 30 recommendations in the recently published all-party parliamentary group report marking the 20th anniversary of the genocide in Darfur, in which 200,000 to 300,000 people died and 2 million were displaced, especially in the light of this week’s declaration by Genocide Watch of another impending genocide, and urgently authorise a formal joint analysis of conflict and stability assessment, or JACS, convening a high-level strategic discussion with our international partners to address this unfolding crisis in Sudan? Will he urge on the warring parties the need for a sustainable peace and a civilian-led Government?

[Lord Ahmad of Wimbledon (Con)]

My Lords, first, we welcome the Jeddah declaration of 11 May, which provides a degree of respite. The trajectory is moving in the right direction, but more needs to be done for a sustainable ceasefire. The noble Lord mentioned the work of the APPG, which I am well versed in. I know of the important work that has been done over the last 20 years. When I visited Darfur, I saw directly the impunity which prevailed regarding the crimes committed at that time. In a particular chapter of the APPG report, there is an extensive number of recommendations. I suggest that I write to the noble Lord outlining some of the steps we have taken, including those based on the recommendations we are considering.

[Baroness Sugg (Con)]

My Lords, holding perpetrators to account for their actions is essential, both for the sake of those who have suffered so greatly in this conflict and to ensure that the people in charge know they will be held responsible. Does my noble friend the Minister support the call from Sudanese women’s human rights defenders and women’s groups, supported by the International Service for Human Rights, for the Human Rights Council to establish an international investigation mechanism with sufficient resources to investigate and document sexual and gender-based violence?

[Lord Ahmad of Wimbledon (Con)]

My Lords, as my noble friend is aware, I am the Government’s lead on, and the Prime Minister’s special representative for, preventing sexual violence in conflict. Tragically, we again see women and girls in Sudan being targeted specifically. On the issue of the Human Rights Council, my noble friend will also be aware that the United Kingdom, as penholder, led on the resolution, which we believe was practical and drew attention to the current crisis as it unfolded. It is probably the strongest statement we have seen from the HRC in this respect. I recognise the points my noble friend raised, and I assure her that the Government are very much seized of what more can be done in this area.

[Lord Anderson of Swansea (Lab)]

My Lords, the Minister has agreed with the noble Lord, Lord Alton, that the main loser is the people of Sudan. Does he agree that there is no real hint of compromise among the protagonists, both of whom see this as an existential problem—that there will be one winner and one loser?

[Lord Ahmad of Wimbledon (Con)]

My Lords, while I agree with the noble Lord to the extent that there can be no winners in this situation, my right honourable friends the Prime Minister and the Foreign Secretary have both made clear, through direct interactions with the two parties and their generals, the importance of reaching an agreement—a ceasefire, in the first instance—to allow for humanitarian assistance and a sustainable peace between the two parties. We have seen some traction. We are working very closely with the Kingdom of Saudi Arabia, and I praise its efforts in this regard. We have seen the first agreement, which provides protections though international humanitarian law. Unfortunately and tragically, we are still seeing attacks on humanitarian workers. We are working with key partners, including the Quad, on this, and I will continue to update your Lordships’ House accordingly.

[Baroness Smith of Newnham (LD)]

My Lords, my noble friend Lord Alton raised the spectre of refugees—these people would be genuine asylum seekers coming from Sudan—potentially ending up on small boats. What discussions is the FCDO having with the Home Office about ensuring that people who are fleeing violence will be treated in a humane way in this country?

[Lord Ahmad of Wimbledon (Con)]

My Lords, our country has a long tradition of ensuring that we are a sanctuary for those fleeing persecution. I know that my colleagues in the Home Office are monitoring the situation very closely to ensure that we are able to respond effectively to this crisis.

[Lord Stirrup (CB)]

My Lords, what assessment have the Government made of the growing involvement of the Wagner Group in Sudan? We are only too well aware of its appalling track record on a great many issues, not least the treatment of civilians in conflict areas. How soon can we expect the Government to proscribe that repugnant organisation?

[Lord Ahmad of Wimbledon (Con)]

My Lords, the noble and gallant Lord will know that I cannot speculate on his final question. However, we are fully aware of the work of the Wagner Group from emerging reports about possible activities in Sudan and wherever there is a gap, as I have said before at the Dispatch Box. We have seen that the Wagner Group is operating very effectively in the Sahel too, particularly in Mali. There is an added element: this is not just an ordinary mercenary group—it does a deal with whoever is governing or controlling a particular area, so there is a direct economic benefit. I agree with the noble and gallant Lord that this is a very dangerous development, and we certainly do not need the Wagner Group emerging as another threat in Sudan.

[Lord Collins of Highbury (Lab)]

My Lords, the Minister referred to the humanitarian crisis and the people of Sudan suffering. One area of deep concern is the desperate need for healthcare supplies. The International Committee of the Red Cross and the Red Crescent has 30 tonnes of surgical supplies in Port Sudan being held up by bureaucracy. How are the Government using our partnerships in the region to unblock those supplies to ensure that the needs of the people of Sudan are met?

[Lord Ahmad of Wimbledon (Con)]

The noble Lord is correct that supplies are being held up. Some of them of being challenged directly; even the most basic humanitarian support is being interrupted and aid workers continue to be attacked. With the exception, I believe, of the ICRC, there is no operational body on the humanitarian side. However, my right honourable friend the Foreign Secretary met this week with the new president of the ICRC, and we are working with near neighbouring countries, particularly Egypt, to ensure we open up key routes. We are also working with the Kingdom of Saudi Arabia and partners in the Quad to ensure that essential requirements are met, including humanitarian support and medical supplies.

[Baroness Hussein-Ece (LD)]

My Lords, Sudan was already hosting over a million refugees—the second highest refugee population in Africa—before the current conflict. The majority of those were from South Sudan, Ethiopia and other neighbouring countries. The UNHCR has called for urgent new emergency funding to help deal with the crisis. Can the Minister say what is happening to the people in camps already reliant on the aid agencies, many of whom are fleeing and going to other countries? Is any help being received there? What is happening to the displaced population of refugees already hosted by Sudan?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure the noble Baroness that we are looking at our full humanitarian response to the crisis, including working with Sudan’s near neighbours. We have issued a new £5 million funding package as an immediate response to the crisis, and we are looking at what other funding we can provide. However, I will be very open with the noble Baroness about the challenge. As the noble Lord, Lord Collins, highlighted, there are supplies and support, but it needs to get through to Sudan. As the noble Baroness will be aware from her own work, South Sudan is also reliant on that supply route from Sudan, which presents an extra logistical challenge. We are looking at announcing new measures, and the House will be updated.

[Lord Browne of Ladyton (Lab)]

My Lords, further to the excellent question from the noble Baroness, Lady Smith of Newnham, and the Minister’s response, would a refugee seeking to flee this dreadful conflict in Sudan be able to find a safe and legal route to the United Kingdom?

[Lord Ahmad of Wimbledon (Con)]

My Lords, as the noble Lord will be aware, we work with key agencies, including the UNHCR, to ensure that there is a validated process for those seeking refuge. During the crisis in Sudan, we also provided support for British nationals and their relatives—qualifying dependants—to leave Sudan. As I said in my answer to the noble Baroness, the Home Office is looking at what further response is necessary.

Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023

Lord Ahmad of Wimbledon Excerpts

Tuesday 16th May 2023 Grand Committee

Moved by

[Lord Ahmad of Wimbledon]

That the Grand Committee do consider the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023.

Relevant document: 38th Report from the Secondary Legislation Scrutiny Committee (special attention drawn to the instrument)

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the Russia Sanctions EU Exit Amendment Regulations 2023 amend the Russia (Sanctions) (EU Exit) Regulations 2019. The instrument was laid on 20 April 2023 under powers provided by the Sanctions and Anti-Money Laundering Act 2018. It contains measures that we have co-ordinated with our international partners to increase the pressure on Mr Putin for waging an illegal and brutal war against Ukraine. These measures place further constraints on Mr Putin’s war machine and on Russia’s economy, adding further force to the largest and most severe package of economic sanctions that Russia has ever faced.

On Trade 6, this instrument delivers on the commitment made by the UK Government to ban the export of all items that have been used by Russian forces on the battlefield to date. It builds on extensive bans made in previous legislation, widening export prohibitions to include additional aircraft and vehicle parts, radio and other electronic equipment, biotechnology assets and 3D printing machinery. The second tranche of measures contained in this legislation prohibits the import of nearly 150 additional goods which generate export revenues for the Russian economy. It catches products as diverse as cigars, wood, tools and machinery. The third tranche of new restrictions covers the import of iron and steel products, including metal coming from Russia that has been processed in third countries. These additional sanctions underline the UK’s leadership role on Russian trade sanctions and will inflict further economic damage and constrain Mr Putin’s ability to equip and fund this war. These measures were applied from 21 April 2023, with the exception of the prohibition on iron and steel products processed in third countries, which will enter into force on 30 September 2023, on the same date as the EU’s equivalent ban.

Before I conclude my opening remarks, I hope noble Lords will allow me to extend slightly beyond the scope of this debate as I would like to take this opportunity to update your Lordships on the Government’s position on a proposed separate sanctions measure announced by the Government in April 2022, but not introduced through a statutory instrument. After careful consideration, the Government have decided not to proceed with legislation on a cap on funds held by Russian nationals in UK bank accounts. Having made a detailed assessment of this policy option, we have concluded that carefully targeted sanctions against high net worth supporters and beneficiaries of Mr Putin’s regime is a more effective way to achieve our objectives. I assure noble Lords that this follows rigorous scrutiny of the policy by relevant officials across government and, importantly and as we have done with other sanctions, consultation with key industry partners, and it is in line with our objective of ensuring that our sanctions are targeted, practical and effective.

As this latest package demonstrates, we will continue to impose hard-hitting sanctions against the Russian state and its supporters. This package alone adds a further £280 million-worth of exports and around £145 million-worth of imports to our prohibited list. As with all our sanctions, this latest package has been developed in co-ordination with our international partners, a point made by noble Lords in all previous debates, and I assure noble Lords that we will continue to work with them to identify and address any gaps or loopholes that emerge in our sanctions regimes.

To conclude, these latest measures demonstrate our determination to target those who participate in or facilitate Mr Putin’s illegal war of choice. Since Russia’s full-scale invasion, the UK has sanctioned more than 1,500 individuals and entities, including 130 oligarchs and their family members with a global net worth of £145 billion, and we have sanctioned more than £20 billion-worth of trade, 96% of the total UK-Russia goods trade in 2021.

Sanctions continue to work. Russia is increasingly isolated and out of Western markets, services and supply chains. Key sectors of the Russian economy have fallen off a cliff, and its economic outlook is bleak. I assure noble Lords that the UK Government will use sanctions to ratchet up the military and economic pressure on Russia until Mr Putin ends this brutal invasion of Ukraine, and we welcome the clear and continued cross-party support for this important course of action, for which I am grateful. I beg to move.

--- Later in debate ---

I have raised the British Overseas Territories with the Minister before, and I know that he has assured the House that all the territories are fully compliant in terms of the relevant sanctions, but it would be good to hear exactly how we are ensuring that the BOTs have the capacity properly to police and ensure that these sanctions are effective. With those few comments, I reassure the Minister that we fully support the Government’s actions and these regulations.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I thank the noble Baroness, Lady Northover, and the noble Lord, Lord Collins, for their strong support of the Government’s actions. Once again, it demonstrates the unity of purpose and, importantly, the unity of action on these important measures. I thank them for their careful scrutiny and consideration of the various measures. I will certainly seek to answer some of the specific questions and issues that have been raised in the time allocated. I will also follow up in the usual customary way with specific responses, particularly to some of the technical questions that the noble Baroness, Lady Northover, raised.

Both noble Lords raised the issue of legal services. I will not speculate on that particular issue, but I note the fact that both the noble Baroness and the noble Lord have raised it, and I totally understand the wider context of application. When we look at key industries and sectors, we need to look at the wider context of how these sanctions can be effectively implemented.

The noble Baroness, Lady Northover, pressed slightly further on the impact of the sanctions, asking for a kind of compare and contrast of what the impact has been. I have a raft of statistics, including that there was a 99.1% reduction in UK goods imports from Russia in September to November 2022 compared to the same period in 2021. There have been various studies, including one by Yale University, for example, which showed that more than 1,000 foreign businesses have withdrawn, undoing the vast majority of foreign investment made in Russia not just since the war but dating back to the fall of the Soviet Union. There was a 79.7% reduction in UK goods exports to Russia in September to November 2022 compared to September to November 2021.

Export bans have contributed to the long-term downgrading of Russia’s military and high-tech industry and prevented oligarchs accessing even luxury products. For example, UK exports of machinery and transport equipment decreased by 98% between February and August 2022. Russia’s Transport Minister has admitted that Russia’s logistical infrastructure is now broken as a result of these sanctions. Additional sectors have also been impacted, and I would be happy to share the facts and figures with the noble Baroness, but I hope that gives at least a sense that the sanctions are having a direct impact.

The noble Baroness and the noble Lord, Lord Collins, both raised, rightly, the importance of alignment. I assure them that we are on the same page here. I have said time and again that measures work best when we are aligned. Indeed, the delay to 30 September on one of today’s proposed measures is reflective of that co-ordination. I will elaborate further: because of the complexity of supply chains and the interconnectivity of the global world that we live in, it is important that those sanctions are applied in the most effective manner. We have taken that decision with our key partners.

The noble Lord, Lord Collins, raised a broader point about co-ordination with those countries—he mentioned a number of them—where the sanctions may be introduced or even talked about but are not implemented effectively. With those key partners to us who are not implementing sanctions, I believe there are opportunities to change this, as I saw as recently as Saturday when I was in Stockholm. We focused in on Ukraine and there were countries present from the Indo-Pacific region who perhaps do not share the same objectives behind sanctions as us. This allows us and other key partners—including the US, which was in the room, and, importantly, our EU partners—to demonstrate the why: the need for these sanctions to be implemented. We will certainly avail ourselves of other opportunities in this respect. Indeed, after I finish here today I will go to the airport to attend the Council of Europe meeting in Iceland where, again, the focus will be on Ukraine specifically.

A question on fertilisers was also raised. Our sanctions are designed to minimise unintended consequences for critical supply chains, including for the important areas of food security and pharmaceuticals. Both the noble Baroness and the noble Lord acknowledged that in any sanctions we impose, we still have to address the false narrative that is sometimes put out by Russia that somehow these sanctions do not allow essential goods—such as humanitarian support and medicines—to get through. They do, and there are humanitarian carve-outs for that.

On some of the points that the noble Lord raised about the overseas territories, I assure him that we work very closely with them. Although some may legislate for themselves, a number require support in terms of legislative capacity. We are very much in lockstep to ensure that these sanctions are implemented, and they have the resources and support required to implement them. Of course, we review our general relationship with the OTs over a raft of areas, as we have done recently, including through the joint ministerial council. Many overseas territories were represented at the coronation a couple of weeks ago.

On whether we are going far enough, quickly enough and whether we have enough staffing, in December 2021 there were 48 substantive roles in the sanctions unit, which has now become a sanctions directorate. My work in government allows me to say that when a unit becomes a directorate and a directorate becomes a department, you can see where the trajectory is heading. It is not quite a department, and one hopes we will not need to get to that stage. However, we have now doubled the number of officials focused on our response and have over 100 permanent staff delivering our response. That does not include those working across the FCDO and its overseas network, who are also part of some of the wider roles that we undertake.

I have already talked through some of the detailed impacts of the sanctions themselves. The noble Baroness, Lady Northover, and the noble Lord, Lord Collins, referred to the debate yesterday which was also about the issue of the cap on UK bank funds. I would certainly be happy to have a discussion about that, but I assure the noble Lord and the noble Baroness that, as I said in my opening remarks, we are looking at all these measures to ensure that they are effective and implemented in a way that will allow for the most practical outcome. It is certainly the Government’s view that a proposal to introduce an indiscriminate cap on funds that Russian nationals are allowed to hold in UK bank accounts would in effect punish those Russians in the UK who do not support Mr Putin and his illegal actions.

To give a personal anecdote, I remember when I started in banking many years ago in 1991 and the Iraq war happened. One of the places where I was doing my training had the highest net worth of Iraqi clients, and when restrictions were imposed, they were also imposed on the very people who were opposing the regime. We have reiterated time and time again— I know the noble Lord, Lord Collins, and the noble Baroness, Lady Northover, share the same sentiments—that our dispute is not with the Russian people or ordinary Russian citizens, or indeed the many Russians who have made their lives in the United Kingdom. It is with Mr Putin and his illegal war in Ukraine. We believe that in our approach—again, I am grateful for the support on this—we are targeting those who support Mr Putin and his illegal actions in Ukraine. The measures debated today are targeted specifically at those who participate in, facilitate and support this illegal war.

I assure both noble Lords that the UK is committed to using sanctions to keep up the pressure until Mr Putin ends his brutal and senseless war. We stand resolute in our firm support: indeed, the recent visit of President Zelensky underlined our commitment not just in terms of the support we give in the markets but also our support for Ukraine’s direct defences. As I have intimated already and said yesterday, my right honourable friend is already in Reykjavík meeting some of our key Council of Europe partners. Equally, I hope during the course of my engagements there once again to make the case very strongly about the need for unity, purpose and action. Sanctions are one of the key instruments that allow us to ensure that Mr Putin realises the real cost to him, to those who support him and to the Russian economy if he continues with this brutal and senseless war.

As I said earlier, a number of smaller technical questions were raised, particularly by the noble Baroness—I will of course write to her in this respect. I put on record again my sincere thanks to the noble Lord, Lord Collins, and the noble Baroness, Lady Northover, and indeed to all across your Lordships’ House, whichever party they represent. Today, once again, through the debate on these important measures, we have sent a very consistent and unified message that this House and this country stands with Ukraine.

[Lord Collins of Highbury (Lab)]

Before the noble Lord sits down, I just want to be clear. In yesterday’s debate on the Commons, it appears that the Minister was suggesting that there would be an opportunity to debate and vote upon the decision not to proceed with the cap. There may be good reasons for that, but can the noble Lord clarify what that means?

[Lord Ahmad of Wimbledon (Con)]

I think I sought to clarify part of that. A vote would come on something that is there already: a statutory instrument was never introduced in that respect and of course the Government, when various announcements were made by the previous Prime Minister and Foreign Secretary, were alluding to a raft of different measures that we would look to evaluate. I know the noble Lord appreciates that, consistent with our approach, we would talk to industry and look to consult effectively to ensure that these are practical measures. As I said in my opening and concluding remarks, the view of the Government, after consulting across government and with industry, is that the most effective way is to target through our sanctions the specific individuals and organisations who directly support Mr Putin.

Just to be clear, although announcements were made on a range of measures, the key votes—I am thankful, again, that we have not had to take any votes on sanctions introduced—are on those measures that have been introduced through statutory instruments. I hope that clarifies the position.

Motion agreed.

Ukraine Recovery Conference

Lord Ahmad of Wimbledon Excerpts

Monday 15th May 2023 Lords Chamber

[Baroness Sugg]

To ask His Majesty’s Government what their priorities are for the Ukraine Recovery Conference taking place in London in June to support Ukraine’s economic and social stabilisation and recovery from the effects of war, and how they intend to ensure that it is a success.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the United Kingdom is proud to co-host the Ukraine Recovery Conference with the Government of Ukraine. Preparations for the conference are in collaboration with our Ukrainian colleagues, and the event will focus on the role of the private sector in supporting recovery and reconstruction. It will provide a platform for the Government of Ukraine to set out their reform efforts, particularly in relation to the business environment, and for international partners to signal their ongoing support and commitment to Ukraine.

[Baroness Sugg (Con)]

I am grateful to my noble friend the Minister for that update, and commend the Government on co-hosting this conference and on all they are doing to support Ukraine. A significant amount of further support can come from the proceeds of the sale of Chelsea Football Club, some £2.3 billion, due to be given to a charitable foundation to help the victims of this conflict in Ukraine and elsewhere. I appreciate that this is a very complex process, but it has been around a year since the sale. Can my noble friend the Minister tell me whether the funds will be released in time for the recovery conference and confirm which Minister is responsible for making progress on getting this money to those who need it?

[Lord Ahmad of Wimbledon (Con)]

On my noble friend’s second question—and I thank her for her strong support of the Government’s position—ultimately His Majesty’s Treasury will lead on this issue. The proceeds from the sale of Chelsea FC are frozen in a UK bank account, as she said. Humanitarian experts outside government are responsible for the highly complex process of establishing a foundation to manage and distribute the proceeds. I take on board her suggestion about the importance of perhaps moving forward on this at the time of the conference. I cannot give a specific assurance at this time, but I will share her concerns and suggestions with my colleagues at the Treasury.

[Lord Peach (CB)]

My Lords, does the Minister accept that we must not repeat the mistakes we made in the recovery and reconstruction phase in Iraq and that we must now, with the Ukrainians, focus on recovery and reconstruction as part of their war effort? As we heard in answer to an earlier question, it appears that Mr Putin, the President of Russia, is preparing for a long war; we must do the same. Does the Minister accept that the Ukrainian people’s sacrifice means that they deserve full attention to be given to recovery and reconstruction?

[Lord Ahmad of Wimbledon (Con)]

The insights provided by the noble and gallant Lord are most welcome. We need to capture and leverage the insights and experience of your Lordships’ House to ensure that our Ukrainian friends get a clear and unequivocal message: we stand with you in all sectors. The Ukraine Recovery Conference, which we are hosting in London, is an opportunity for not just government or parliamentarians but the private sector to ensure that the required money can help now to start rebuilding the lives of Ukrainians around the whole of Ukraine. There are things happening in parallel with this, but I assure the noble and gallant Lord that we are fully focused on this important priority as well.

[Lord Collins of Highbury (Lab)]

My Lords, I very much welcome the efforts of the Government and the conference but, as my noble friend Lord Anderson said during the earlier Question, there is an opportunity here to ensure that the Russian state pays as well. We know that substantial Russian state assets have been seized. Will the Minister and the Government work in co-operation with our allies to ensure that this money can be used for the reconstruction of Ukraine?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I have already alluded to the importance of accountability. The noble Lord will have seen the co-operation that we have had on the issue of justice for those who are ultimately accountable, and the strong relationship that we have with the International Criminal Court. All this underlines our primary view—in common with our partners—that Russia is ultimately accountable. On the specific issue raised by the noble Lord, and the noble Lord, Lord Anderson, we are of course in discussion with our partners to ensure that those to be held accountable are fully versed with the fact that they will be held accountable for the recovery. Notwithstanding that, I am sure the noble Lord will agree with me that it is important that we also undertake initiatives such as the recovery conference to ensure that the private sector is ready now to meet our obligations in addressing the needs of the whole of Ukraine.

[Baroness Northover (LD)]

My Lords—

--- Later in debate ---

[Baroness Northover (LD)]

I thank the noble Baroness. Reconstruction in Ukraine, which counts as ODA, will clearly be vital, but is the Minister aware of current estimates that, in 2022, almost 30% of the UK’s aid budget was used to support Ukrainian refugees? Given the pressures of conflict, climate change, food crises and migration, will our aid budget increase, or will the Government—as the Australians do—count support for Ukraine as outside the aid budget?

[Lord Ahmad of Wimbledon (Con)]

My Lords, we stand very clearly in support of meeting whatever requirements Ukraine has; that guarantee has been given by successive Prime Ministers, including my right honourable friend Boris Johnson. The current Prime Minister has reiterated it in his meetings with President Zelensky. The Ukraine conference is ultimately about supporting reconstruction efforts but it will include our humanitarian efforts. I hear what the noble Baroness says on the importance of the use of ODA and financing. While I cannot speculate on what might happen in the future, we are very clear that we stand ready to support the humanitarian needs and requirements of Ukraine fully as well.

[Lord Soames of Fletching (Con)]

My Lords, does my noble friend agree that, on top of the onerous requirements for civilian reconstruction of Ukraine, there will be the serious matter of dealing with the most battle-hardened army in Europe? It is a matter that the British Armed Forces would be very accomplished in helping with. Will my noble friend raise this matter in preparation for the civilian reconstruction, so that we are able to deal with what will be a very serious security situation?

[Lord Ahmad of Wimbledon (Con)]

My noble friend shares a very valuable insight, and I assure him that I will do just that. We will work closely with all our key partners on the very points that he has raised. We fully support Ukraine in all aspects of its recovery, including its military capabilities.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, does the Minister realise that recovery is going to be a major task, almost equivalent to the Marshall plan after the Second World War, and that therefore a great deal of effort is going to have to be put into ensuring that? Does he see the fourth summit of the Council of Europe as an opportunity to discuss this further, as well as discussing further military support for Ukraine to get all 46 countries of the Council of Europe behind both the current military effort and the reconstruction effort? I thank him for ensuring that the United Kingdom will be represented at that fourth Council of Europe summit at the very highest level with the attendance of the Prime Minister.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I record our thanks for the vital work done by Members of this House at the Council of Europe. The noble Lord is correct that my right honourable friend the Prime Minister will attend the Council of Europe meeting tomorrow. He will participate directly on the issue of Ukraine, and we will work with our key partners. My attendance at the meeting with our Indo-Pacific partners as well as member states of the European Union also underlines the focus that we put on Ukraine. I will be taking over the baton, if I can put it that way, from the Prime Minister on Wednesday to ensure that the United Kingdom is represented at the Council of Europe fully and that our views are shared with our key partners.

[Lord Alton of Liverpool (CB)]

My Lords, has the Minister seen the estimate that as much as £1 trillion will be required for the reconstruction of Ukraine, on the scale and size of something like the Marshall aid programme? To return to the Question asked by the noble Baroness, Lady Sugg, has he also seen that the money that has been moved into secret trusts by oligarchs in this country, in one case alone, amounts to more than £3 billion? Will he support, and encourage his noble friends to support, the amendment that was considered in Committee on the economic crime Bill, which enjoyed all-party support and would ensure that that money could then be deployed for the reconstruction of Ukraine?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I recognise the noble Lord’s valuable efforts on this issue and many more. I can share with him that we are looking at all ways, means and mechanisms to ensure that all money can be utilised, but we must ensure that we do so according to law, as I alluded to in the response I gave to my noble friend Lady Sugg. I recognise the importance attached by your Lordships’ House to ensuring that we can expedite some of these areas to ensure that the financing is in place. That is why I come back to the objective and sole purpose of the recovery conference, which is to include all parties, including, importantly, the private sector. We of course recognise the bill for recovery in Ukraine, and that is why we will host this conference side by side with the Ukrainians. We have wide attendance. We have been working through the G7, and that will be reflected in some of the outcomes of that important conference.