Financial Assistance to Ukraine Bill Debate

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Department: HM Treasury
Lord Kempsell Portrait Lord Kempsell (Con)
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My Lords, I join in the expressions of welcome and praise for the noble Baroness, Lady Batters. I am sure that her excellent, touching maiden speech will have great resonance with working mothers everywhere. I know that the whole House looks forward to her contributions on the importance of British farming and so many other issues.

I welcome the measures in the Bill, which will continue to provide Ukraine with the financial support it so desperately needs. The funds in question are drawn from immobilised Russian sovereign assets, and rightly so. The extraordinary revenue acceleration mechanism is an innovative example of what is possible when the focus of our G7 partners is rightly directed at the aggressor. Russia unleashed this illegal war on the people of Ukraine, and Russia will have to pay. It is heartening that that sentiment has been nearly universally agreed to in your Lordships’ House this afternoon. As President Zelensky said, the measures we are debating are a strong signal that:

“Russia must pay for its brutal war”,


because

“accountability for acts of war is inevitable”.

I hope the Bill will be passed as swiftly as possible. I join others in thanking the Minister for his work on this, which I know has taken much of his engagement and focus.

On the payment timetable and the disbursement of funds, we understand that the G7 has agreed that payment will be in three equal tranches over the next three years. Given the urgency of the matter, and the many questions raised today in your Lordships’ House about the military use of the UK’s contribution to ERA, I ask the Government to consider submitting a speedier timescale than three years. That is what is needed. As we have heard so many times in your Lordships’ House, Ukraine urgently needs all the military equipment it can get, as soon as possible, so military use must be allowed.

To that end, I associate myself with the powerful and cogent arguments of my noble friends Lord Blencathra and Lord Banner about what has been left outside the scope of the Bill. I understand that the Government must seek to pass legislation as soon as they can in this area and the difficulties of designing legislation and drawing its scope, but we have heard here this afternoon some powerful arguments for widening the scope of this measure to the seizure and transfer of Russian sovereign assets in the United Kingdom.

Today’s proceedings raise a more significant issue than the technical details of the Bill. The Bill, though welcome, cannot be a substitute for the Government setting out a clear vision for the future of Ukraine and what they would like to see achieved in this crucial year. It is right that the UK’s financial, military and humanitarian support continues and has been maintained by the new Labour Administration. It is right that Ministers continue to visit Ukraine, although I note that, despite his busy and demanding travel schedule, the Prime Minister is yet to visit the country since he has been in office. I hope that he is able to visit very soon—I am sure he will. But none of that is the same as the Government setting out and articulating a vision for what should actually happen in 2025, because this is a critical moment for Ukraine and for the entire western alliance.

I know that Ministers will not want to risk the UK’s leadership or risk any accusation that the UK Government have turned down the volume on their leadership of big-picture vision for what should happen next. When I spoke in the debate on Ukraine in your Lordships’ House in October, I said I was concerned that the UK was at risk of losing that leadership. I said that because the same anxiety had been expressed in those direct terms by President Zelensky himself. Ministers must communicate to the public what this Government believe Ukraine’s destiny to really be. Ukraine is destined to be a free, sovereign, independent, European state in the western alliance. It is not destined to be part of a revanchist, reinvented Russian empire in any sense.

Ukraine’s future was arguably in contention for decades, but Russia’s illegal war has, ironically, settled the issue, because Ukrainians are now completely clear-eyed about what they want. I have heard it from Ukrainians themselves, including from servicemen injured on the front lines, as I made numerous trips to Ukraine last year. I say this in part to answer the questions posed by my noble friend Lord Balfe about what victory means. Ukrainians want to be inside the NATO security architecture. They want the capabilities and permissions to win the war, militarily, in no uncertain terms and for permanent western security guarantees to be in place. To anybody outside your Lordships’ House who might doubt that position, I suggest that they talk to Ukrainian armed forces service men and women themselves, because they possess the most up-to-date and expert experience available to NATO of fighting Russia.

As my noble friend Lady Neville-Rolfe said, when Russia invaded, former Prime Minister Boris Johnson was the leading voice when it came to giving Ukraine the military, financial and humanitarian support needed. But he also set out a vision. He understood that this is more than a kinetic war; it is a battle of ideas about how the world should be. I am worried that that language is slowly changing nowadays. Standing with Ukraine for as long as it takes and helping it pay for this war as long as it takes is, at face value, a laudable concept, but there are some inside the Russian Government who view that as sign of weakness because it suggests that there is an open-ended timetable for concluding this conflict.

I want to commend and thank the Government for supporting a series of Conservative Administrations while they were in office and for continuing that support for Ukraine on entering government. This Bill rightly develops that, so nothing should stand in its way or be done to slow down its passage. That said, I hope the Government will use this opportunity to set out what they believe to be their agenda to regain international leadership on how this conflict is settled. The UK should lead with moral and strategic clarity, because the denouement of this conflict is important to resolve in the best interests of the free world, including of course, and most pre-eminently, Ukraine.