Ukraine and Neighbouring Countries: ODA

Lord Goldsmith of Richmond Park Excerpts

Thursday 16th June 2022 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, on behalf of my noble friend Lord Dubs, and with his permission, I beg leave to ask the Question in his name on the Order Paper.

[The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con)]

My Lords, the UK is one of the largest donors to Ukraine and the region. Our ODA grant support now totals around £400 million. This includes £220 million of humanitarian aid, a £74 million fiscal support grant through the World Bank and a £100 million grant to support Ukraine’s energy security. The UK is the largest donor to the UN’s Ukraine Humanitarian Fund. The FCDO’s annual report and accounts will be laid in Parliament before the Summer Recess and will include further detail on ODA spending.

[Baroness Smith of Basildon (Lab)]

I am grateful to the noble Lord for his helpful Answer. The UN Refugee Agency estimates that some 16 million people are currently in need of humanitarian assistance across Ukraine, particularly in occupied areas and areas that are hard to assist and get to. We have all seen scenes on our television screens from brave and dedicated journalists who are bringing those pictures into our living rooms. He talked about the money; will he say a bit more about the work we are doing in a multiagency way to ensure that those hardest to reach areas are getting the help and support they need, without which more are going to die?

[Lord Goldsmith of Richmond Park (Con)]

My Lords, in addition to the financial support that I mentioned in my first Answer, the UK has more than 320 staff now working on the response to the crisis in the region, including humanitarian experts in the neighbouring countries of Poland, Romania and Moldova. Our humanitarian field teams in the region are providing logistical support and advice and co-ordinate with Governments and the UN in those neighbouring countries. That is in addition to the £45 million package that the Foreign Secretary announced to support the UN and associated charities, which includes a £10 million grant for humanitarian organisations operating, for example, in Moldova.

[Lord Bellingham (Con)]

My Lords, this appalling, barbaric and evil invasion has led to really serious grain shortages in many parts of the world, including Africa, so as well as looking at the front-line countries for his department’s aid, will the Minister look seriously at working with the World Food Programme to prevent what is possibly going to be a really catastrophic famine in a number of African countries?

[Lord Goldsmith of Richmond Park (Con)]

My noble friend is absolutely right. The food insecurity that the conflict has caused is, in part, a natural consequence of this kind of conflict, but it is also part strategy on the part of the Russians, who are, as other noble Lords made clear in previous debates, now using famine as a weapon of war. Last month, our Defra Minister for Farming, Fisheries and Food, Victoria Prentis, represented the UK at the US-led week of action on global food insecurity at the UN. We put forward our six-point action plan, which included ensuring the free flow of food trade and prevention of export restrictions, targeting the £3 billion of humanitarian aid over the next three years to the most vulnerable, in line with the international development strategy, and ensuring the multilateral institutions, including the World Bank, deliver $170 billion of economic support over the next 15 months.

[Baroness Uddin (Non-Afl)]

My Lords, what funding from the official development assistance budget has been allocated to neighbouring countries, given our difficult evacuations of those who worked for us in Afghanistan, some of whom have escaped to nearby countries? In particular, what work is going on with women?

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[Lord Goldsmith of Richmond Park (Con)]

It is not possible to give a precise answer because a lot of the funding that we have provided is destined for neighbouring countries but going through, for example, UN agencies. For example, the £25 million we have given to the UN Refugee Agency is designed to support refugees in those neighbouring countries, but I cannot give the noble Baroness an exact breakdown of which country has received which amount of money. As I mentioned in my earlier answer, we also have well over 320 staff working on the ground, helping those countries deal with an escalating refugee crisis.

[The Lord Bishop of Southwark]

My Lords, does the Minister recognise that among the devastation of whole towns and cities in Ukraine is included the destruction of churches, mosques and synagogues, and the looting of museums? Will Her Majesty’s Government fund technical assistance in the rebuilding of religious centres and aid Ukrainian authorities in the listing of stolen artefacts and antiquities with the Interpol stolen art database?

[Lord Goldsmith of Richmond Park (Con)]

That is an extremely important point. Our priority at this moment is to do what we can to ensure that Ukraine can defend itself against Russia’s illegal aggression and to help those people who have been immediately caught up in the crisis—refugees but also others. We know that there will be an enormous rebuilding requirement across the board, and the UK is at the heart of the discussions as to what that process will look like, who will fund it and what the UK’s role will be.

[Lord Alton of Liverpool (CB)]

My Lords, I will take the noble Lord back to the question asked by his noble friend Lord Bellingham and his helpful reply about the problems of getting grain out of Ukraine to countries that are at risk. Will he confirm the figures given by the UN that in east Africa and the Horn of Africa some 16 million people are already at risk of food insecurity and facing famine, and that by September the number could rise to 20 million? Can he confirm that in Odessa alone there are 45 million tonnes of grain and that the Kremlin continues to pump out a narrative blaming Ukraine and the West for this food now not reaching desperately needy people, and that some of those countries are being enlisted by Putin in his war because they are faced with the moral dilemma of being able to feed their people and siding with the Kremlin? It is hugely important that we contest that narrative and I hope the noble Lord will take the opportunity to do so.

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord makes a key point and although I cannot guarantee that the figures he cited are correct—I will have to put that on the record after this discussion to be sure that I get it right—I believe those are the figures I was presented with this morning. I think what he said is correct in terms of numbers, but he is certainly correct about the narrative. Russia is the only cause of the food security crisis that has resulted from this conflict. There is no other possible answer. The Russians have targeted food reserves—including yesterday when a very large grain store was destroyed, we believe deliberately —as part of an effort to throw the world, particularly its poorest countries, into turmoil. This is a very clear strategy on the part of President Putin and the noble Lord is absolutely right to call him out on it, as do the UK Government.

[Lord Alderdice (LD)]

My Lords, can I return the Minister to the matter of funding, which was the original Question? How far is the funding going to Ukraine, which I entirely support, being taken from the budget for poorer countries, and how much is it additional to the funds we would normally give? As has been pointed out by a number of questioners, the secondary consequences for poorer countries are catastrophic. Can we have an assurance that the funding to Ukraine is additional, or is it being taken away from others in desperate need?

[Lord Goldsmith of Richmond Park (Con)]

The financial humanitarian support that is being provided comes from our ODA budget, but I do not believe that we are facing the choice the noble Lord has presented to the House. Effective action on this conflict in Ukraine has massive implications for some of the countries the noble Lord alluded to, which are really on the front line when it comes to dealing with food insecurity and so many other issues. Dealing with this issue effectively has massive humanitarian impacts way beyond the borders of Ukraine.

[Lord Howell of Guildford (Con)]

My Lords, this is a very good report of what we are doing now to support Ukraine in its agony, but I hope, looking further ahead, when it comes to development and the rebuilding of Ukraine, we will make quite sure that those who have done the damage carry the overwhelming burden of paying for it. My one suggestion is that we should pay half the cost for the oil and gas that we, or Europe, still have to buy from Russia and that the rest should go into an escrow account and be used to build up adequate funds for the total recovery and rebuilding of this great country.

[Lord Goldsmith of Richmond Park (Con)]

It is a very valuable suggestion, but I cannot unilaterally make decisions of the sort that would be needed at the Dispatch Box. I will certainly raise the issue as he has put it to me with colleagues in the Foreign Office, but the principle behind his question is absolutely right and is the position of the UK Government. Our view is that the Russians should be made to bear the brunt of the financial costs when it comes to repairing a country that Russia alone has brought to its knees—or attempted to.

[Lord Newby (LD)]

I will follow up on the question asked by my noble friend. I think the Minister said that the overseas assistance budget has not been increased to cater for funding going into Ukraine. A necessary corollary appears to be that poor countries will lose. Am I wrong?

[Lord Goldsmith of Richmond Park (Con)]

I said earlier that the humanitarian funding comes from the ODA budget, as all humanitarian funding relating to all humanitarian crises always does, whatever the crisis—unfortunately, there are many such crises. That is a big part of what ODA exists to do, so it is right that it should come from that. However, not all the support we are providing to Ukraine, now and going forward, is coming from the ODA budget. For example, as the noble Lord will know, we have UK Export Finance, which has been mandated to provide as much support as possible to Ukraine in relation to its rebuilding, and to bring investment into it. Through the BII we are also doing what we can to try to stimulate and leverage investment in Ukraine as part of the rebuilding exercise. Some of the guarantees that we have provided through other multilateral institutions are not borne by the ODA budget. It is not all about the ODA budget, but the humanitarian assistance comes from it and I think it is right that it should.