Russian Assets: Seizure

Marie Rimmer Excerpts

Tuesday 14th March 2023 Commons Chamber

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

Billions of sanctioned Russian assets lie dormant. There is at least £26 billion of Russian bank reserves frozen in the UK. It is blood money that Putin has secured on the backs of the bodies of his own people, the people of Grozny and the people of Ukraine. For years, Putin was preparing for sanctions. He expected what we, along with our allies, have done, but there are many countries facilitating the evasion of sanctions.

Putin has been given ample time to back down—over a year, in fact—and he has chosen not to do so. This may not be a state of total war for Russia, but it is for Ukraine and its people. In reality, we must accept the truth that Putin will not back down, because doing so would be the end of his rule in Moscow. Simply, Ukraine must win, which is why this debate is important.

The Government have billions of pounds-worth of Russian assets at their disposal, which could be used to support Ukraine now. It is pointless to keep them frozen and perhaps use them to help to rebuild Ukraine in a few months or years, or perhaps even longer, if Ukraine no longer exists. The priority must be to help Ukraine now, not in a hypothetical future. There are reports that China is considering backing Russia with lethal aid, which would further prolong the conflict and make it even more difficult for the brave Ukrainians.

Since the start of the invasion, the UK has provided more than £2 billion in military assistance, which has made a huge difference, particularly at the beginning of the war. If £26 billion of Russian assets were repurposed for military and humanitarian assistance, that would make an even greater difference. The next set of assets are the private, undisclosed ones; it is likely that Russian oligarchs own billions of pounds-worth of hidden and undeclared assets here in the UK.

The Economic Crime and Corporate Transparency Bill, if amended correctly, will help authorities to track down those assets. A policy of “disclose it or lose it” would make oligarchs think again about using our country to hide their dirty money. For that to work, however, the Bill needs to be strengthened, because it is too easy for oligarchs to evade sanctions. Many had weeks to prepare and hide their assets, and authorities were already on the back foot due to the years, or even decades, that oligarchs had had to do as they please.

The Bill is long overdue and I urge the Government to seize the opportunity to get it right. It is not acceptable to leave loopholes in sanctions that have already been used to sue British journalists. The United States Congress has granted the Department of Justice the ability to transfer certain seized assets to Ukraine, and it successfully did so last month. Our Government need to do the same.

We all want and need to see Ukraine win this war, because it is fighting for our shared values. Freedom and democracy must win, and it is our duty to do our lot to help. That is why I support the motion before the House today. Let us seize Russian assets here to help Ukraine win.

After hearing the contribution of my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), I simply say that it is about time that the Government got their act together. In local government, when powers are delegated, the framework is also delegated and people are held to account. If what is needed is not being delivered, the Government need to change something so that it is delivered. Are we in control? Who is running this country? We are certainly not doing our bit on this issue. We want to, but we are not achieving it, so the Government must get their act together—and soon.