Ukraine

Lord Risby Excerpts

Thursday 21st September 2023 Lords Chamber

[Lord Risby (Con)]

My Lords, all of us are aware of the scale of destructive landmine activity by the Russians—literally creating killing fields—which has impacted the Ukrainian fight-back. I pay heartfelt tribute to the way Ukraine has undertaken de-mining most professionally. Many take enormous personal risks to do this, not least led by two British organisations.

Your Lordships have rightly dealt with the necessity of securing an environment in which Ukraine can victoriously return to normality. This is essential for the Ukrainian people to live in a free, democratic and prosperous state within internationally recognised borders. The Ukraine Recovery Conference, held here in June and cohosted by ourselves and Ukraine, laid down a clear foundation. Some 500 global businesses from 42 countries had already signed the Ukraine business compact, and priority sectors included energy, technology, infrastructure and finance. I note the further initiatives taken by our Government.

But I believe that we are now at a stage to move to building on these admirable objectives, while making it plain that Russia must fully contribute to the reconstruction of Ukraine. In Ukraine, many schools, hospitals, universities, homes, roads, railways, water systems and ports will need to be rebuilt. The planning and construction time needed for these large-scale projects, including their funding, designing, regulatory requirements and building, could take years. Thus, setting a clear road map and timeframe now for Ukraine’s recovery will make potential investors in the country’s renewal and redevelopment more confident in the future. Without a clear plan for how Ukraine can be rebuilt, private sector funding may be out of reach, jeopardising recovery.

I would therefore like to explore the critical matter of commercial insurance, an increasing demand among businesses which wish to invest in the country. At the June conference, the war risk insurance framework was launched. The European Bank for Reconstruction and Development announced a pilot war risk insurance scheme among other positive announcements, but policy development and implementation remain work in progress.

Apart from the immense security pressures, let us examine the economic situation in the country—a budget deficit of $40 billion, now essentially being covered by the USA, European countries, the IMF and others. Unemployment inevitably remains high with diminished tax revenues. But by generating revenue through a stronger domestic economy, Ukraine will become less reliant on external financial support. Western investors moving early can help to shape the kind of economy Ukraine should have after the war, with higher standards of good governance.

An absolute key to making Ukraine investible is a sufficiently viable wartime insurance programme for investors. The French are planning an insurance programme for French investors under the auspices of BPI, their public bank for investment: up to 90% of the amount of any investment, with ultimate decisions made by the French Government. I believe that we, with our exceptional credibility and reputation in Ukraine and our highly professional financial sector, could take the lead on this, also encouraging greater collaboration between the private insurance sector and G7 countries. The present situation in Ukraine calls for a multilateral public-private solution approach. I encourage my noble friend the Minister to give real consideration to this insurance matter, given the foundations laid at the June renewal conference.

My noble friend will be aware of the lessons we have learned in recent years about the secure supply of critical minerals. My understanding is that Ukraine’s potential in the field of mining—with of course critical minerals in particular, as well as energy and agriculture—will be included at a critical minerals partnership meeting to be held in London. Will my noble friend confirm that this meeting will take place?

If Ukraine’s own regulatory and policy frameworks improve, the country’s energy production potential can be further deployed. According to the International Energy Agency, Ukraine has substantial renewable energy potential, including significant biomass resources and waste management possibilities, largely untapped. Furthermore, Ukraine holds gigantic gas reserves, the second highest in Europe. Before the war started, Kyiv developed a reputation for high-level technology capabilities. I welcome the TechBridge agreed between ourselves and Ukraine.

To conclude, the moment is coming when real incentives for investing in the country are needed, but with assurance that war risk cover can be introduced to bring this about.