Repurposing Russian Assets to Rebuild Ukraine

Matt Western Excerpts

Tuesday 27th June 2023 Commons Chamber

[Andrew Western (Stretford and Urmston) (Lab)]

It is not possible to calculate the true cost of Putin’s barbaric attack on Ukraine—the misery caused by the death, destruction, and despair he has inflicted cannot be quantified—but there are some costs that we are able to calculate, enormous though they are. We know that the illegal invasion has caused approximately $137.8 billion of damage to Ukraine’s infrastructure, and we know that approximately $50 billion-worth of damage has been inflicted on Ukraine’s housing stock and that its agricultural sector, which is vital to countries beyond Ukraine, has seen a hit of $9 billion.

Behind each of these statistics are of course people—people who must pick up the pieces of this carnage. It is essential that we provide them with every possible means of support to do that. So I am pleased that the Opposition have secured a debate today to push forward a vital way in which we can fund this support. For it is not enough to fully stand behind Ukraine’s resistance to Putin; we must also be fully behind Ukraine’s recovery after, as I hope, this awful war has ended and Putin has been defeated. I fully back today’s motion, which is consistent with the unwavering support we have shown for Ukraine in the last year.

As we have heard today, the cost of rebuilding Ukraine is estimated to be around $400 billion, equivalent in scale to the Marshall plan that helped rebuild Europe after the horrors of world war two. We must pull every lever at our disposal to help meet that cost. One such lever is the repurposing of seized Russian assets. From the very beginning of Putin’s invasion, Labour has called on the Government to do that. In that time, conservative estimates state that the UK has seized more than £18 billion and possibly, as we have heard today, up to £26 billion in Russian-owned assets, and I commend that effort. I also commend the Government announcement last week that Russian sanctions will remain until compensation is paid to Ukraine. However, we must go further and faster. There are vast numbers of Russian assets in this country, often acquired through the corruption of the Russian state. It is morally and politically right to re-purpose them.

[Matt Western (Warwick and Leamington) (Lab)]

I commend my hon. Friend on making an excellent speech. Does he agree that Canada is showing exceptional leadership in how it is dealing with the seizing of ill-gotten Russian assets gained from Ukraine?

[Andrew Western]

My hon. Friend makes an important point, and I will give some other examples later on of other institutions and nations that are also leading the way in that regard. For all that there is unity across the House in our support for Ukraine, the Government have not made enough progress on overcoming the obstacles that stand in the way of repurposing Russian state assets. Indeed, we had a debate in this place on these issues back in March, when my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) set out a timeline of Government commitments: Ministers had said on five occasions between July of last year and February this year that they were considering all options on using seized Russian assets to help rebuild Ukraine. We are a year on now from those first commitments on repurposing assets, and it is not clear that we are any further forward.

I urge the Government to take inspiration from what is happening not just in Canada but in the US, where legislation has been introduced in the Senate and the House of Representatives that would give the US President the authority to confiscate Russian assets frozen in the United States and transfer them to help Ukraine. The European Commission President has said that the EU bloc will put forward a proposal before the summer break on how the proceeds from the more than €200 billion belonging to the Central Bank of Russia frozen in the EU will be used to be pay for Ukrainian reconstruction. That is the level of urgency we need. I hope that when the Minister rises to wind up, they can let the House know what conversations the Government have had on the feasibility of replicating measures taken by our allies in the US and the EU.

We are all agreed on the importance of maintaining western unity in support for Ukraine, and part of that must not be falling behind our allies in the efforts to make Putin take financial responsibility for the damage he has done. The unity that exists in this House to support Ukraine is vital, but as part of that united effort, we must be able to press Ministers to go further and faster when it is needed. That is what today’s motion is about. I know that it is difficult, but Ukraine has no time to wait. We must see a concrete plan soon. The Government will have support from across the House in drawing it up and implementing it.