Ukraine

Mark Francois Excerpts

Tuesday 22nd October 2024 Commons Chamber

[John Healey]

I was proud to sign that treaty, which means that Ukraine can draw down the export credit cover and contract with UK companies. It is also a framework that, like some other frameworks the UK has put in place, other nations and their companies can use to deal with the difficulties that many face in contracting with Ukraine. The Ukrainians will use it for contracting and procuring munitions and ammunition. It will allow us to step up not just the provision but the production of essential military aid to Ukraine.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

I welcome the statement, but the BBC reports that the money will be paid not in one go but in tranches over time. We have the Budget next week. Will the Secretary of State assure us that, given that the money is what accountants would call an “exceptional item”, it will in no way be included in the overall defence budget next week, or attempt to bolster or bump that up? There are rumours of cuts, so will the right hon. Gentleman assure us that the money is a one-off that will be treated completely differently in the Red Book?

[John Healey]

I can give the right hon. Gentleman that assurance. The money is a one-off. It is additional and separate, and it will be accounted for and set out separately in the Treasury documentation. Its significance is that it is a loan to Ukraine that Ukraine will not have to pay back, because it will be serviced by the interest on the frozen Russians assets. He asks whether the sum will be paid all in one go. It will be made available soon in the new year, and the Ukrainians will be able to draw it down as they need it for the purposes that they determine.