Ukraine

Lord Newby Excerpts

Thursday 24th February 2022 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I thank the noble Baroness for repeating today’s Statement. I think the mood of the House is sombre but also very angry. We welcome the new measures announced in today’s Statement and assure her of our support to ensure their speedy implementation. Could she pass on my thanks for the briefings I received on this issue?

This morning, as Ukrainians woke to the sound of sirens, military aircraft and tanks, they knew that their worst fears had been confirmed. Despite his false claims, President Putin’s invasion of a democratic and sovereign state is totally unjustified. It is a moment in history, the consequences of which will reverberate around the world.

Putin will learn that his aggression carries a very high price. The Moscow stock market collapsed this morning, the rouble has fallen in value and the human loss is already clear. We make it clear that we stand with the people of Ukraine and reassert that democracy will always triumph over dictators.

Resistance will not be limited to Ukraine. It is backed by the united resolve of democratic nations around the world. As the noble Baroness alluded to, there are also many people in Russia who are horrified by this violent aggression. The free people of Ukraine are supported by the entire NATO alliance in their resistance, many of whom will feel less safe and secure today. The decision to strengthen NATO’s defences is welcome and we must work with our NATO allies in eastern Europe to bolster their security, especially in the light of Estonia’s decision to trigger Article 4 of the North Atlantic Treaty.

The noble Baroness will recall that, earlier this week, I asked her for an update on our support to the Baltics. I understand that she was not able to respond then, but if she could give some further information today we would be grateful. We welcome that Sweden and Finland will attend tomorrow’s NATO meeting. This is a moment to show the world that we stand shoulder to shoulder with all those who feel the destabilising impact of this invasion.

The noble Baroness may know that noble Lords from across the House, some of whom are here today, including me, have been actively supporting peaceful protesters throughout Belarus through an adoption scheme of political prisoners. We particularly welcome the announcement of additional measures against Lukashenko’s regime, which is enabling this offensive.

We now must combine military assistance with political and financial support. There is no greater display of solidarity than to expose and tackle illicit Russian finance. The steps announced, including deposit limits, are welcome. The noble Baroness will have our support in implementing these urgently to prevent restrictions being circumvented. We must now go further. Although I accept the need for wider agreement to exclude Russia from financial mechanisms such as SWIFT, I urge the Government to act without delay to seek to achieve such an agreement. Given that the central bank of Russia is known to have developed an alternative to SWIFT payments, we also need to be prepared for any follow-up action.

I am pleased that the noble Baroness the Leader reiterated the UK’s intention to divest from Russian oil and gas. We should support others in doing the same. Many of our NATO allies in eastern Europe are heavily reliant on them, and we need to support them in transitioning from Russian fossil fuels as part of an international focus on energy security.

The noble Baroness will have heard calls on many occasions from Members of this House to bring forward the economic crime Bill, so the Government are right to commit to it today. We offer practical support to ensure that it is implemented. We need tough action on shell companies, urgent reform of Companies House, and zero tolerance for Russian interference and Russian money in our democracy. The noble Baroness will understand that these Benches have called for the Elections Bill to be used as a means of banning Russian donations to political parties. Sanctions have to go beyond just squeezing the Russian economy. They have to be part of an entirely fundamental change in our approach towards the Kremlin, so it would be helpful if the noble Baroness could outline what other legislation—she mentioned the economic crime Bill—will be brought forward as part of the Statement.

Can we say something about humanitarian support, because it is going to be crucial? The Government will have our support in any steps undertaken by our representatives at the UN, working with UNHCR and other appropriate agencies, to prepare for this. We must fully engage in our international institutions to secure humanitarian access under the Geneva conventions, and we must recognise the very great risk of large-scale displacement of people.

As we turned on our TVs this morning, no one could be failed to be moved by the shocking and very distressing pictures of Ukrainians fleeing their homes, some of them unable to carry their possessions with them, their cars stuck in traffic jams as they sought escape for themselves and their families. I hope the Minister will be able to confirm that the Government are already engaged with neighbouring allies to offer the UK’s support.

President Putin has made it clear that he sees any ally of Ukraine as an opponent of Russia. He is prepared to act as the world’s aggressor, whatever the consequences. Ukraine, NATO and the Government have our full support in challenging this barbarism, and we will do all we can with them to ensure that Putin fails. He will learn that his actions serve only to strengthen the alliances against his corrupt regime. The spirit of Ukraine will live on in the resistance and, while there will be dark days ahead, we will ensure that the price Putin pays for his aggression will outweigh the doomed pursuit of personal glory.

[Lord Newby (LD)]

My Lords, when we debated this issue on Tuesday and President Putin’s intentions were already pretty clear, I doubt that we fully comprehended the scale and ruthlessness of what he had in mind. Now we have no such doubts. By his own words, we know that he wants the demilitarisation of Ukraine, which he can achieve only by the successful subjugation of the whole country. We are united in offering our full support to the Ukrainian people in resisting this illegal aggression and, metaphorically at least, we stand alongside them in their defence of shared values, peace, democracy and liberal views.

There is therefore much in the Statement which we welcome. It is encouraging, for a start, that the G7 leaders have been working so closely together today, and we hope that this process continues. Some of the specific measures are particularly welcome. We welcome the exclusion of Russian banks from the UK financial system, the banning of Russian banks and companies from raising funds in the UK, the extension of these sanctions to Belarus, the freezing of assets on individuals and companies, and the banning of high-tech dual-use items as exports to Russia. There are, from the Statement, clearly still many details of how these measures will be worked through, and we will obviously co-operate with the Government on any emergency legislation required to do this.

There seem to be two glaring omissions from the list of sanctions announced this afternoon: the words “Rosneft” and “Gazprom” do not appear. Quite apart from their size, these two companies stand to gain more than any others by the rise in oil and gas prices that Russian action is causing. It would surely be sensible to freeze them from the City of London, and any activity in the UK more generally. Could the Minister explain whether that is really an omission, or if they might in fact be covered under the headline of the 100 banks and companies affected by these sanctions?

The Prime Minister said that the package means that oligarchs in London have nowhere to hide. Given that they are not actually hiding in London but do have assets here, what does this mean? Which oligarchs might be involved? It would, for example, send a strong signal if one of them were Roman Abramovich, one of Putin’s close allies. I say this not just as a Leeds United fan: will he be affected?

The Prime Minister says that the Government will introduce legislation covering unexplained wealth orders before Easter. That is fine, but why are the other measures in the economic crime Bill, particularly the reforms to Companies House, and the register of overseas property ownership, being delayed until the next Session?

The whole Bill is apparently ready. To have potentially to wait for more than a year before it is on the statute book seems plainly inadequate to us.

The Government say that nothing is off the table and specifically cites the SWIFT system as being in that category. As the noble Baroness, Lady Smith, asked: what is happening with SWIFT? Are the Government actively pursuing it with their allies, and is there any sense of when the exclusion of Russia from SWIFT might actually take place? Can the Leader of the House confirm whether any other measures are also under consideration, such as a blanket travel ban for all Russian nationals or a more complete trade ban?

In terms of the military situation, it is a positive step that NATO leaders are meeting tomorrow. However, the Prime Minister gives no clue about what he will be proposing to them. For example, will NATO—and, in any event, will the UK—be making more military equipment available to Ukraine? Does the UK stand ready, as we believe it should, to offer more troops and aircraft to NATO if they are requested?

The fog of war has descended on Ukraine. We cannot yet see clearly how events on the ground are progressing. However, we can see enough to know that Ukraine faces the gravest possible threat to its independence as a sovereign state and that the longer-term peace and prosperity of Europe is in the balance. We must now unite, both as a country and with our democratic friends, to defeat these threats.

[Baroness Evans of Bowes Park (Con)]

I very much thank the noble Baroness and the noble Lord for their comments and support. The incredibly constructive and sombre tone which all noble Lords have taken in their contributions is gratefully received. I look forward to working with noble Lords across the House as we face this difficult situation.

The noble Baroness asked about the Baltics. We are working extremely closely with them. We are doubling the number of UK troops in Estonia in support of NATO’s enhanced forward presence. My noble friend Lord Ahmad visited there 10 days ago, so a lot of contact is going on. Of course, we will work with our allies and, as was mentioned in the Statement, we will have meetings with NATO leaders tomorrow to discuss this further. We are also deploying four more RAF jets to create a squadron in southern Europe. As I mentioned in the previous Statement earlier in the week, a small number of marines have been deployed to Poland from the UK and more will travel during the next week. These personnel were originally due to deploy on Exercise Cold Response in Norway but have been reassigned to this task. We will be working with our allies to look at what further support we can provide in the region and to Ukraine itself.

Both the noble Baroness and the noble Lord asked about SWIFT. As the Statement made clear, we have not ruled anything out in terms of sanctions. None the less, this is an area where we need to work with our global partners, and we will continue to have discussions with them to see as and when further action can be taken. I can assure the noble Lord that there will be a rolling programme of sanctions and actions. As we have already seen from Tuesday to today, significant developments have happened. Today, I cannot go any further than what has been said in the Statement in terms of shedding light on things to your Lordships’ House. I am sure noble Lords understand. As I hope noble Lords have already seen, I can assure the House that we are working globally with our partners to ensure that we are moving and responding to the situation as things develop on the ground.

In relation to legislation, as the Statement made clear, we will bring forward measures on unexplained wealth orders before the House rises for Easter. Next week, we will be laying SIs which will be able to implement some of the other measures. As I said in the Statement, we will set out further details before Easter on the range of policies to be included in the economic crime Bill, including on reforms to Companies House and a register of overseas property ownership. We are already taking action on multiple fronts to crack down on economic crime. Noble Lords will know that, in July 2019, we published Economic Crime Plan bringing together Government, law enforcement and the private sector to tackle fraud and money laundering. We have already delivered 37 actions within this. We have created a new National Economic Crime Centre to co-ordinate law enforcement response to economic crime and have introduced further new powers. Obviously, more work needs to be done, and we are focused on that.

The noble Baroness rightly asked about the humanitarian situation. We are providing financial and technical assistance to partners on the ground to ensure the system is prepared to support those in Ukraine who need it most. For instance, we are working with partners, supporting the Ukraine Humanitarian Fund through the UN humanitarian agency. We have already committed £100 million to new funding to aid efforts to build Ukraine’s resilience and reduce reliance on Russian energy supplies, and 1,000 more British troops will be put on readiness in the UK to support a humanitarian response in the region as and when we know where we need to deploy it.

The noble Baroness was absolutely right: the international community must speak as one in demanding full humanitarian access, respect for human rights and adherence to international humanitarian law. Once again, I thank the noble Lord and the noble Baroness for their comments.