Ukraine Update

Lord Newby Excerpts

Tuesday 22nd February 2022 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I begin by thanking the noble Baroness for repeating the Statement. I also want to put on record my appreciation for the Privy Council briefings that I have had from the Government.

As we have watched events unfold and diplomatic efforts intensify, we have moved between hope that those efforts will succeed and despair that this could end in war. We should not underestimate that this is a moment of huge gravity. At this stage, we do not know how the next few days, or even the next few hours, will play out, but it is clear that this is a dangerous time for Ukraine and, in the longer term, for stability and security across Europe. It is no exaggeration to say that this marks a significant moment in global politics that will have far-reaching implications for future interaction with Putin’s Russia. So let us call this out for what it is: the Russian President has rejected the rule of law and Ukraine’s right of sovereignty and territorial integrity.

The Government have our full support in holding Russia to account. As we heard in the Statement, Putin has sought to create false justification for his actions. Russia faces no threat from NATO or Ukraine. Even at this 11th hour, efforts for a diplomatic solution must continue, but Putin has to know that our values mean that we have no other course but to stand shoulder to shoulder, united with NATO and our allies across the world, in support of the people of Ukraine. Let us be absolutely clear: we will not be divided in that support.

We welcome the military support that has been given to the rightful Government of Ukraine. The pressure they are under in their daily lives and at all times now is absolutely enormous. We can only admire their courage in the face of the threats and the hostile actions. As regional stability weakens, our friends and allies in eastern Europe will feel the closest threat, and we welcome the Government’s engagement with the Baltic states. The UK must always remain committed to the principle of collective defence and that an attack against one NATO ally will always be considered an attack against all. Can the noble Baroness the Leader of the House say anything further today about discussions to strengthen the military assistance provided to our NATO allies in eastern Europe?

On sanctions, regardless of the direction that Putin now takes, a red line has already been crossed. We welcome and support the sanctions announced by the Prime Minister and will fully co-operate in getting this legislation through. But the Government have to go further. Putin needs to understand that his actions carry a huge cost, and that we stand firm with our allies in opposing them. Looking at what more can be done, can the noble Baroness say whether the Government will also consider excluding Russia from SWIFT and other financial mechanisms, and a ban on trading in Russian sovereign debt? We welcome the decision to sanction the five Russian banks, but they apparently represent only a fraction of those which, it has been reported, could be included. Further banks with links to the Kremlin remain active in London and across the West. I do not know how much more the noble Baroness is able to say today, but can she confirm whether work is continuing to prepare for further designations?

Again, as welcome as sanctions on the three named individuals are, we have to recognise that these individuals have already been designated by the United States for over four years. The noble Baroness may not know why we have been so much slower in taking action, but is she able to confirm today that in tackling this issue the Government understand the need to improve co-ordinated action with our allies? Also, what assessment has been made of the impact on Russia’s trading relationship with the rest of the world?

The invasion of Ukraine should represent a turning point for how we interact with Russia, but it is also an opportunity to look at the effects of Putin’s regime in the UK. The Kremlin’s misinformation campaign continues to target the West, with outlets such as Russia Today still able to broadcast its propaganda across the world. Will the Government now take steps to ban RT from operating in the UK?

Similarly, allies of Putin are still able to use the UK to launder dirty money, so why are the Government still failing to act on the recommendations of the Russia report? And, with the Elections Bill introducing new loopholes to allow foreign donations to UK political parties, Ministers have to wake up to the creeping influence of Russian money in our politics. I should notify the noble Baroness that we will seek to amend the Elections Bill to remove these new loopholes, but, in the light of Russia’s recent actions, will she commit today to speaking to the Prime Minister and her Cabinet colleagues about removing these provisions from the Bill, and report back to your Lordships’ House? Failing that, there will be an amendment in this House to remove those loopholes.

The most recent escalation looks set to trigger a prolonged conflict. No one will benefit from that, including the Russian people. We did not seek this conflict, and we always sought peaceful coexistence. But the UK and our allies must ensure that Russia will now feel the consequences of Putin’s aggression, so our sanctions have to be tougher and targeted. We in this Parliament must be as united as we are with our international allies in support of the Ukrainian people.

[Lord Newby (LD)]

My Lords, this has been a very sombre 24 hours. President Putin yesterday set out his view that Ukraine had no legitimacy as a state, and said he was sending so-called peacekeepers—in reality an invading army—into Donetsk and Luhansk. Today, and even since the Prime Minister made his Statement, he has announced that he is recognising the whole of the Donetsk and Luhansk regions, and not just those parts of them already under de facto Russian control. Against this flagrant aggression and breach of international law, how well does the Government’s response match up?

We support the broad stance that the Government are taking in opposing the Russian aggression and the measures they have so far taken to provide Ukraine with training, anti-tank weapons and other support. We agree with the Statement that the UK Government—and, indeed, all western Governments—have given Putin every opportunity to pursue his aims by negotiations and diplomacy. However, I am a bit bemused by the assertion in the Statement that

“we will continue to seek a diplomatic solution until the last possible second.”

It seems to me that the last possible second expired last night. Can the Minister explain what more Putin would have to do to make the Government believe that there really was no diplomatic solution on offer any more? Surely, that boat has most definitely sailed.

Earlier in the month, the Prime Minister made it clear that, as soon as the first Russian toecap entered Ukrainian territory, the West would impose sanctions that would really hurt Russia. I know that the situation is far from clear, but Putin has already committed to sending in troops, and there are reports that the first have already been deployed. Germany, by announcing today the suspension of the Nord Stream pipeline, has already acted in line with the Prime Minister’s injunction.

What, then, are the Government proposing? They sanctioned four banks, most of which are minnows. They sanctioned a mere three individuals who, as the noble Baroness has already said, have already been the subject of American sanctions for a number of years. We are told:

“This is the first tranche of what we are prepared to do: we will hold further sanctions at readiness.”


Why are we holding further sanctions at readiness? What are we waiting to happen? What more does Putin now need to do? The truth is that the sanctions announced in this Statement are pitifully insignificant. Putin, if he hears of them at all, will simply be smirking at them.

The noble Baroness has set out a number of things that the Government could do, which I agree with. I would like to set out a number of things that I think the Government should do, and I invite the Leader of the House to explain whether the Government have these measures in contemplation—and if not, why not. They should revoke the golden visas of those Russian nationals who have known links to the Russian regime. They should impose a windfall tax on energy company profits, which is desirable in itself, but would hit Gazprom, which channels its trading revenues through London. They should freeze the assets of Russian companies in London and introduce the register of beneficial ownership Bill, which would shine a light on dirty Russian money in London. The Government could surely get this oven-ready Bill through the Commons in a day: tomorrow springs to mind. I am sure that your Lordships’ House would pass it with alacrity. Certainly, from these Benches, we would facilitate its passage as a matter of urgency.

We know that, in addition to London, there are very large amounts of Russian dirty money in Switzerland and Monaco. We could call on the Swiss Government and the Monegasque authorities to do the same as we might do in shining a light on this money. Perhaps we could ask President Macron to have a word with his colleagues in Monaco. So far, there is no evidence that the Government plan to do any of this—or, indeed, anything of any substance.

When Putin invaded Crimea, he got away with it at no discernible cost. When he undertook the Salisbury poisonings, there was no significant response. He has now committed his latest outrage. If we are to have any influence at all in persuading him and the Russian elite that these illegal, aggressive policies are not simply to be met by little more than a shrug of the shoulders, we need to see much more action contained in this Statement, and soon.

[The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)]

I thank the noble Lord and noble Baroness for their comments and their support for our standing together with Ukraine and the approach that we are taking.

As both noble Lords rightly said, with his actions in the Donbass region overnight, and the further developments today, President Putin has flagrantly violated Ukrainian sovereignty: he has sent troops in, broken international law, repudiated the Minsk agreement and torn up the understanding from Budapest that Ukraine’s territorial integrity was to be respected. We are working tirelessly to co-ordinate our response with our allies, and will not allow Russia’s violation of its international commitments to go unpunished.

NATO allies remain committed to a dual-track approach to Russia: strong deterrence and defence combined with meaningful dialogue. The noble Baroness asked what other actions we had taken. A small number of marines have already deployed to Poland from the UK, and more will travel next week. These personnel were originally due to deploy on Exercise Cold Response in Norway but have been reassigned to Poland. We are also preparing to reinforce the British-led NATO group in Estonia; that will include deploying RAF Typhoon fighters and Royal Navy warships to protect south-eastern Europe. Further details will be provided as things develop.

We are also working with international partners on options for further economic and defence support for Ukraine, but, as noble Lords will know, we have supported the development of the Ukrainian army. Last month, as I mentioned in the Statement, we sent 2,000 anti-tank missiles to Ukraine alongside a package of training by our troops, and last week we provided more equipment. Over the last eight years, under Operation Orbital, we have trained more than 22,000 members of the Ukrainian armed forces.

Both the noble Lord and the noble Baroness talked about sanctions. The ones announced today are only the first tranche, and are targeted at people and financial institutions who have supported Putin’s violation. We will step up sanctions if Russian aggression continues, and we have been clear that in that regard nothing is off the table.

Our toughened sanctions regime will enable us to sanction oligarchs and companies of strategic importance to the Kremlin: this is the toughest sanctions regime against Russia that the UK has seen. The five Russian banks that the noble Baroness referred to are all active in bankrolling the Russian occupation, and Bank Rossiya in particular is close to the Kremlin. We will also look at sanctioning those Russian parliamentarians who supported the recognition decision taken last night.

The noble Lord rightly mentioned today’s announcement by Chancellor Scholz of Germany, which we very much welcome, that he has instructed his economic ministry to withdraw its earlier security of supply report on Nord Stream 2, with the consequence that it will not be certified for operation. Again, that is something that we have been talking to the German Government about, and we are grateful for and pleased by this morning’s news.

The noble Baroness asked about disinformation, which we take extremely seriously. We are working collaboratively with our allies to build a better understanding of the different techniques that can be used as part of malicious information operations, and our counter-disinformation unit in DCMS brings together monitoring, expert analysis and capabilities across government. We will continue to see what further action we can take in this area.

The noble Baroness also mentioned the ISC’s Russia report. As noble Lords will know, we published our response immediately on its publication. Many of the recommendations are already in train and we will continue to work on further implementation.

The noble Lord asked about the register of beneficial owners. We have set out plans to establish a register of beneficial owners of overseas entities that own UK property, in order to combat money laundering, and we have been clear about our intentions to significantly reform Companies House to strengthen our ability to combat economic crime. We will be taking that forward.

Last week the Home Secretary announced that she was closing down the tier 1 investor visa route to all applicants with immediate effect. That route has been under constant review and has given rise to security concerns, and we will be making reforms to the innovator route as part of the new points-based immigration system. Closing this route is just the start of a renewed crackdown on fraud and illicit finance. We are soon to publish a fraud action plan, while the forthcoming economic crime Bill will crack down on people abusing our institutions.

Finally, the noble Baroness talked about the Elections Bill, which is having its Second Reading tomorrow. I am sure my noble friend Lord True will listen very carefully to the concerns raised during that debate and we will have discussions as we go forward.