Ukraine

Lord McDonald of Salford Excerpts

Wednesday 30th March 2022 Lords Chamber

[Lord McDonald of Salford (CB)]

Your Lordships’ House debated the invasion of Ukraine on 25 February, the day after Russia’s invasion. Everybody who spoke that day wished Ukraine well. Nobody predicted what has happened in the past six weeks; nobody foresaw what Ukraine could achieve. Everything that could go wrong is going wrong for Russia. Evidence is accumulating that Russia is losing. So I have two questions for the Minister. First, I do not expect him to go into detail, but among the scenarios that the Foreign, Commonwealth and Development Office is now considering, is it looking at the consequences of Russian defeat? The Soviet Union collapsed in 1991; might the Russian Federation, across 11 time zones, collapse in 2022? Secondly, sadly, defeat for Russia does not mean victory for Ukraine. President Zelensky may have to agree an unsatisfactory peace. Please can the Minister confirm that that would not be the trigger for us to lift sanctions? That is a different decision, and sanctions should remain in place until all Russian troops have left the territory of Ukraine.

Iran Detainees

Lord McDonald of Salford Excerpts

Thursday 17th March 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I reiterate the points that I have made. I am grateful to the noble Lord and recognise his important role in relation to these consular cases and the detainees issue in Iran. He mentioned in relation to Nazanin Zaghari-Ratcliffe the role of Richard Ratcliffe, as I have acknowledged, in ensuring that her issue very much seized the minds of those in Parliament here in the UK. It was also an issue that was kept on the front burner. I remember my meetings with Richard, including during his hunger week at the United Nations in New York—his efforts were not just here in London; he was also active internationally. I have already alluded to some of the other detainees.

I have already said that we acknowledged the existence of the IMS debt. This was a complex negotiation. As regards the point made about elite diplomats, the noble Lord is quite right. We want the best of the best in the Foreign, Commonwealth and Development Office. Their efforts and professionalism are testimony to the two parallel issues—the release of the detainees and the vehicle that allowed for the payment of the IMS debt.

The noble Lord asked specifically about the reasoning behind the terms. The terms remain confidential to both parties and that was part of the agreement. However, I have sought to reassure your Lordships’ House that the payment has been made in full compliance with our international obligations and regulations—those concerning international sanctions, counterterrorism financing and anti-money laundering regulations.

[Lord McDonald of Salford (CB)]

My Lords, I agree with the noble Lord, Lord Dubs, that the phrase “elite British diplomats” is a tautology. Today’s good news is the product of many years’ work by many people. I congratulate the Government, the team led by the Foreign Secretary in London and Simon Shercliff in the field, as well as their predecessors. As the Minister has done, I single out Jeremy Hunt in London and Rob Macaire in Tehran.

As the world celebrates the release of Nazanin Zaghari-Ratcliffe and Anoosheh Ashoori the Foreign Office will be turning to lessons learnt. Can I seek reassurance from the Minister on two points? First, although Richard Ratcliffe’s campaign was brilliantly successful, maximum publicity will not always be the most effective way in which to help people in trouble. Secondly, the Foreign Office should help those who choose not to publicise their case just as much as those who are in the light of the media.

[Lord Ahmad of Wimbledon (Con)]

My Lords, these negotiations were carried out over many years and there were high points and low points. I also recognise the important role that the noble Lord, Lord McDonald, played in several years of exemplary leadership at the former FCO in ensuring that diplomatic engagement on this issue was sustained and maintained at the highest level. The noble Lord’s comments as regards the publicity were correct in some instances, as we saw in Richard’s campaign. He felt that that was right and one cannot imagine for a moment until one is in that situation what steps one would take. He certainly was determined. Tulip described him as an accountant who did not really seek the limelight but suddenly found himself thrust in front of the world’s cameras. He showed that he was determined to do what was necessary.

I also totally acknowledge what the noble Lord said about the many consular cases that we deal with involving detainees around the world in which the families specifically ask that the details of the case and the name of the detainee is kept confidential but, at the same time, request discreet and quiet diplomacy. I can assure noble Lords that the issue of quiet and discreet diplomacy is a very effective British tool in unlocking difficult cases.

Ukraine: Discussions with US and China

Lord McDonald of Salford Excerpts

Thursday 17th March 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, first, we have been very clear that if China wants to be seen as a responsible global actor, it needs to take concrete steps to show that it in no way condones Russia’s actions. This alludes also to providing alternative market access. India is a key strategic partner. We are building strong alliances and having clear discussions with India about its role both in conflict resolution and the long-term situation pertaining to Ukraine. I know that the Indian Foreign Minister has engaged directly with both Ukraine and Russia.

The noble Lord alluded to a report. We should wait for formal announcements. I do not want to comment on particular speculation.

[Lord McDonald of Salford (CB)]

My Lords, does the Minister assess that the Chinese understand that more than just the United Kingdom’s relations with Russia are in question right now? Essentially, it is not possible for a country—especially a big country—to be neutral in the face of Russia’s invasion of Ukraine. If China is not clearly part of the opposition, we shall have to reassess our relations with China too.

Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022

Lord McDonald of Salford Excerpts

Thursday 3rd March 2022 Lords Chamber

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

My Lords, these two statutory instruments were laid before the House on Monday 28 February 2022 under the powers provided by the Sanctions and Anti-Money Laundering Act 2018, also known as the sanctions Act, and came into effect on 1 March.

We have announced the largest and most severe package of economic sanctions ever in response to Putin’s premeditated and barbaric invasion. Working with our allies, we will continue to ratchet up the pressure. We have already imposed sanctions on President Putin, Foreign Minister Lavrov, five Russian banks, 120 businesses and a long list of oligarchs. Taken together, they target assets worth hundreds of billions of pounds. Importantly, we have also worked with our allies on this issue, agreeing to remove selected Russian banks from SWIFT and to target the Russian central bank, but we will go further.

We continue to stand with the Ukrainian people in their heroic efforts to face up to unbridled aggression. As I have said on a number of occasions, and as has been said by my right honourable friend the Foreign Secretary, nothing is off the table.

To update noble Lords on where we have got to on sanctions, overnight on 28 February we laid two new pieces of legislation on financial and trade measures. The first included a ban on Russian sovereign debt, a prohibition to limit access to sterling and a ban on any Russian company issuing securities or raising finance in the UK. These significantly strengthen our arsenal of sanctions against Russia. This is alongside increased trade measures, including a prohibition on sensitive dual-use items that could be used by the military and banning a further range of critical-industry goods, from high-tech to aircraft.

Sanctions announced by the United Kingdom and our allies are already having an important impact. Central bank interest rates have more than doubled, international businesses are quickly divesting, and the rouble is now trading at roughly a quarter of what it was when Mr Putin took power. That will impact the institutions that prop up Mr Putin and his cronies. We will continue to work with our allies to bring forward further sanctions and press for collective action to reduce western reliance on Russian energy. We will also continue to use every lever at our disposal to support the legitimate Government of Ukraine and, importantly, the Ukrainian people.

This legislation follows the “made affirmative” procedure set out in Section 55(3) of the Sanctions and Anti-Money Laundering Act 2018. These statutory instruments amend the Russia (Sanctions) (EU Exit) Regulations 2019. The powers in them will prevent Russian banks accessing sterling, which is a significant and new measure for the UK. Russian banks clear £146 billion of sterling payments through the UK financial system each year. Without the ability to make these payments in sterling, designated banks will not be able to pay for trade in sterling, invest in the United Kingdom or access UK financial markets. This matches the power the United States already has to prohibit access to the dollar, showing our joint resolve to remove Russia from the global financial and trade system. Around half of Russian trade is denominated in dollars and sterling. We have already used this power to designate Sberbank, the largest Russian bank.

The same statutory instrument prevents the Russian state raising debt here and isolates all Russian companies—of which there are over 3 million—from accessing UK capital markets. This measure goes further than those of our allies, banning all Russian companies from lucrative UK funding. Russian businesses listed in London have a combined market capitalisation of over £450 billion. This includes some of Russia’s largest state-owned enterprises, and the Kremlin is hugely reliant on their tax revenues. Banning them from raising debt in London will further increase the burden on the Russian state. Global giants such as Gazprom will no longer be able to issue debt or equity in London. In the last seven years, Russian companies have raised over $8 billion on the UK markets. We have put a stop to this.

The Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022 ban exports to Russia across a range of items, including the dual-use list and other goods and technology critical to Russia’s military-industrial complex and its maritime and aviation sectors. The SI also bans a range of technical and financial services related to such items. With this legislation, enacted in alignment with the United States, the European Union and other partners, we will collectively cut off Russia’s high-tech imports. This includes critical, high-end technological equipment such as microelectronics, telecoms, sensors and marine and navigation equipment. It will blunt Russia’s military-industrial and technological capabilities, gradually degrade Russia’s commercial air fleet, and act as a drag on Russia’s economy for years to come. The Department for International Trade and the Treasury will offer advice and guidance to UK businesses that are affected.

In conclusion, Russia’s invasion of Ukraine is part of a long-term strategy. If we were to give ground now, Mr Putin’s strategy of aggression would never end. Instead, he would be emboldened, and his focus would simply move on to the next target. The United Kingdom has been at the forefront of this response. Importantly, we are acting in concert with our allies; collectively, our measures will deliver a devastating blow to Russia’s economy and military for years to come. The importance of co-ordinating with our partners will allow our sanctions to reverberate through Mr Putin’s regime.

We must remain firm and resolute in our response. We must rise to this moment and, importantly, continue to stand with Ukraine and its people. I am determined that we will continue to support them in that choice. I beg to move.

[Lord McDonald of Salford (CB)]

My Lords, I congratulate the Government on what they have done so far, but does the Minister agree that this package has already been overtaken? It is already inadequate against the developing need. For example, the Germans have been able to impound the yacht belonging to Mr Usmanov in Hamburg, yet he still has access to his stately home in Guildford. How can that be?

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate my noble friend on all his efforts and those of Ministers in his and in other departments in both places. However, there is a concern in the country that the inevitable delay in passing the legislation which came into effect on 1 March has perhaps meant that a number of assets have been able to be moved. Are the Government concerned about this?

Looking at SI No.194—I hope I have identified it correctly—I understand that provision will be made for medicines and humanitarian aid to reach Ukraine. I want to press my noble friend as to what routes will be used. There are reports that pharmacies in Ukraine are already facing a shortage of medicines. There will need to safe routes in.

We can only imagine the level of injuries and casualties that are having to be dealt with at this time. Is there any way in which some of the casualties can be evacuated to neighbouring countries? Is it the Government’s desire to send teams of medically qualified people out from the United Kingdom to assist with this humanitarian effort?

Sanctions

Lord McDonald of Salford Excerpts

Tuesday 1st March 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, this question has come up before—I believe that the noble Lord, Lord Wallace, asked it too. The legislation will take effect directly in our OTs as well. Of course, my right honourable friend Amanda Milling, the Minister with responsibility for the overseas territories, is dealing directly with the OTs on this.

[Lord McDonald of Salford (CB)]

My Lords, the noble Lord, Lord Collins of Highbury, mentioned the interest in depriving Russia of permanent membership of the Security Council. Can the Minister confirm that the arrangement made in December 1991, supervised by my noble friend Lord Hannay of Chiswick, to have Russia as the successor state to the Soviet Union is legally watertight, so that the only way Russia can be deprived of permanent council membership is if Russia votes in favour of it?

[Lord Ahmad of Wimbledon (Con)]

I think the House will take the lead of the noble Lord who, as a very distinguished former Permanent Under-Secretary at the Foreign and Commonwealth Office, speaks to what the requirements are. This has been the challenge, frankly, at the Security Council. I am proud—if I may use the word—of the UK’s leadership in its lack of use of its veto power, unlike other P5 countries. The noble Lord is correct in that respect. However, we have seen other actions; for example, the Foreign Minister of Russia could not travel to Geneva for the Human Rights Council earlier today. For those who say the sanctions are not working, I point out that the logistics of restrictions on Russian-registered aircraft over certain countries prevented him travelling. When he spoke, a majority of delegations left the room. There are measures or stands that you can take within the diplomatic network that show not just your immense dissatisfaction but your rejection of the actions of a member of the permanent five.

International Development: Sexual and Reproductive Health

Lord McDonald of Salford Excerpts

Monday 28th February 2022 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

My Lords, funding levels for individual programmes across the FCDO will be confirmed after the departmental planning process taking place over the coming months has concluded. I am afraid that is the only answer I can give, but I will take the noble Baroness’s comments back to the FCDO, where I am absolutely certain they will be met with a nod of agreement.

[Lord McDonald of Salford (CB)]

My Lords, when I joined the Foreign Office in 1982, I learned that there were only two seasons in government: spring and autumn. The curious thing is that each can last for longer than six months. Once again, the Minister has said that the international development strategy will appear in the spring. Can he at least give us a month?

[Lord Goldsmith of Richmond Park (Con)]

I will go out on a limb and say that the IDS will be published within what is normally regarded as spring. I am afraid that I cannot give the noble Lord a date.

Russia

Lord McDonald of Salford Excerpts

Monday 10th January 2022 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, it is not my job to speak for Mr Putin or Russia, and I will not do so. It is clear that we present a united alliance against Russian aggression and we will continue to work with partners in that respect.

[Lord McDonald of Salford (CB)]

My Lords, the noble Lord, Lord Collins, reminded the House that the Foreign Secretary’s Statement was a very tough Statement using very tough language. I wonder whether there is a danger that it may mislead people in Kiev and Moscow, because, in the end, Ukraine is not an ally of the United Kingdom and is not covered by the Article 5 guarantee of NATO. Will the Minister confirm that his formulation—massive economic sanctions—is the extent, and that we are not talking about any kind of military deployment to Ukraine?

[Lord Ahmad of Wimbledon (Con)]

My Lords, the noble Lord speaks with great insight and experience of foreign policy. I agree that it is important to underline the consequences of further Russian aggression. I have already alluded to the fact that my right honourable friend pointed specifically to the economic cost and challenge, as I have done again today. As a more general point, I concur that one of the cardinal rules of diplomacy I have learned in the past few years is that tone and content both matter.

Charities: Landmines

Lord McDonald of Salford Excerpts

Monday 15th November 2021 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

I thank the noble Lord for his question. I shall have to write to him with an answer on the current assessment.

[Lord McDonald of Salford (CB)]

My Lords, in September, the United Kingdom assumed the presidency of the Convention on Cluster Munitions. Since then, the FCDO has removed funding for mine-clearance operations in Vietnam, South Sudan and Zimbabwe, some of the countries worst blighted by cluster munitions and landmines. Will the Minister explain how this decision will help the UK achieve its objective of the universal application of the convention? From outside, it looks as though we are failing to put our money where our mouth is.

[Lord Goldsmith of Richmond Park (Con)]

The noble Lord is right that the funding has currently been reduced in relation to demining. The Global Mine Action Programme, which I mentioned earlier, will begin next year. We are reviewing funding and country allocations and hope to be able to share our plans for the programme in due course.

Integrated Review of Security, Defence, Development and Foreign Policy

Lord McDonald of Salford Excerpts

Thursday 22nd April 2021 Lords Chamber

[Lord McDonald of Salford (CB)]

My Lords, unlike many noble Lords, many allies have welcomed the integrated review. I will make just three points from listening to this debate.

First, the most consequential meeting the United Kingdom will organise this year—even more important than the G7—is COP 26 in November. Our guests in Glasgow are entitled to ask what our contribution is. This week’s announcement of a 78% reduction in CO₂ emissions by 2035 compared with 1990 goes a long way to answer that question, but 90% of the combined biodiversity of the UK and OTs is found in the OTs. What contribution will the OTs make to our climate objectives?

Secondly, I agree with the noble Lords, Lord Reid, Lord Howell, and Lord Hain, and others that raising the cap on our stockpile of nuclear warheads looks odd. I understand that a continuous at-sea deterrent needs us to be able to deploy two boats from time to time. The new ceiling allows both boats to be fully armed. But that does not increase deterrence. It is expensive and incompatible with our obligations under the nuclear non-proliferation treaty. In 1968, the non-nuclear weapon states accepted that as their permanent status in exchange for two things: the sharing of the benefits of peaceful nuclear technology, and that nuclear weapon states would work towards nuclear disarmament. The Government assert that the objective is untouched, but the announcement is a step away from its achievement.

Thirdly, on organisation, I agree with my noble friend Lord Ricketts that we need institutional arrangements with the European Union. Internally, things are clearer. The merger of the Department for International Development and the Foreign and Commonwealth Office last year was an essential step to increase and maximise the coherence and impact of the UK’s overseas policy-making and policy delivery. Cutting the aid budget at the same time has made acceptance of this merger more difficult within the new department, but I still believe that it is the right thing to do and that we should go further—I hope that, before long, trade will fall under the authority of the Foreign Secretary.

Lastly, I have an organisational suggestion for the Opposition. In order to succeed, the FCDO needs everyone who works for it to buy into the new ministry. Some colleagues will feel justified in treating it as temporary for as long as there is a shadow Secretary of State for International Development. I urge the Opposition to correct that anomaly.