Ukraine Recovery Conference

Stephen Doughty Excerpts

Thursday 22nd June 2023 Commons Chamber

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I draw attention to my declarations in my capacity as shadow Minister. I thank the Minister for his statement and advice sight of it, and for his constructive engagement with the Opposition throughout the course of the conference; it was a great honour to be able to attend. We have many disagreements in this House, but Vladimir Putin should be clear of one thing: there is absolute unity across this House on this matter, and our resolute support will continue.

This week has truly underscored that the strength of support for Ukraine—for its sovereignty and nationhood and for the values that we share—is unwavering. It has also demonstrated that our diplomatic alliance stretches across not only the public sector and our Governments but the private sector, and we will continue to stand foursquare behind Ukraine until it is victorious and the full scale of Russia’s barbarous destruction is reversed. I have seen that damage for myself, but I have also seen the resilience and rapid rebuilding the Ukrainians have been able to do even now. However, there are huge challenges ahead, for example in the removal of mines and unexploded ordnance and the huge damage to civilian infrastructure, and of course from disasters like the Kakhovka dam destruction.

For over a year and three months Ukraine has, at an unimaginable price, defended its territory but also the principles of an entire continent—liberty, democracy, self-determination and the international legal order. I thank the Inter-Parliamentary Union, the Westminster Foundation for Democracy, the Ukraine-UK inter-parliamentary friendship group and colleagues across the House for their engagement with the parliamentary components of this conference. We had some very successful events in this place yesterday, and I thank the House and the IPU in particular for organising them.

The Prime Minister was right to say yesterday that prior to this barbarous invasion Ukraine was becoming a huge focal point for foreign investment and interest. Across agriculture, raw materials, start-ups, renewable energy and technology, to name just a few sectors, there was so much promise in Ukraine, and it is in the interests of all of us, and most importantly of the Ukrainian people, that Ukraine gets back on a solid economic footing and becomes that internationally competitive nation once again. So Labour welcomes the multi-year commitments made to Ukraine yesterday, including the loan guarantees and other measures that will be critical in shaping Ukraine’s future. Can the Minister provide more information on the timescale for those loan guarantees? How many deals are already in the pipeline as a result of them? Can he also say a bit more about the risk insurance framework, and what role London, as a leading international insurance market, will play?

We also welcome the announcement of $15 billion to Ukraine over four years from the International Monetary Fund, and the announcement of £250 million of extra funding for British International Investment, formerly CDC. However, the Minister will be aware that BII and its predecessor have not worked in Ukraine or that part of the world for a long time. Can he say a little bit more about how it is going to scale up and ensure that that money is used quickly and effectively?

Moving on, as the Minister referred to, the Prime Minister rightly stated that Russia must pay for the damage it has inflicted, saying that

“we’re working with allies to explore lawful routes to use Russian assets”.

That is most welcome, given that we on the Opposition Benches have been calling for the Government to take serious action since last year. Although the UK has been leading in many areas when it comes to Ukraine, I am sorry to say that this is one where the UK is following, not leading. When we look at what has happened in Canada or the EU, or in the US with the new bipartisan Bill being put forward, there are innovative suggestions on how we might legally and quickly secure resources for Ukraine’s immediate reconstruction. We are still getting a lot of “wait and see” from this Government.

The Minister will have heard again and again at the conference yesterday about the desire for Russian state assets to be used. There is lots of expert advice out there publicly on how that might be achieved, so I ask him the same question we have been asking for almost a year now: what concrete steps will the Government take with our allies to ensure the urgent repurposing of Russian state assets, and when can we expect to hear announcements on that? We welcome the announcement about ensuring that existing sanctions will stay in place, which is crucial, but we need to go much, much further.

Briefly, on security guarantees, I was pleased to hear again this week that there is support for Ukraine’s path to join NATO, once it has prevailed in the war. Britain must play a crucial role in securing that, and Ukrainians are proving beyond any doubt that their country is the vanguard for European democracy and security. We must acknowledge that and act accordingly. Can the Minister provide the House with an assessment of support for that course of action across our NATO allies? How will the UK ensure that Ukraine’s voice and wishes continue to be heard?

Finally, I want to come to the important matter of Ukrainian democracy and reform, which the Minister raised and which was discussed in the conference and raised in the speeches of President Zelensky and Prime Minister Shmyhal. Ukraine’s resilience has been tested in ways that many of us would baulk at, and Ukrainians have shown that they will stand firm, but we need to ensure that transparency, accountability and the strength of institutions continue to improve over the years ahead. Otherwise we will likely see further attempts by Russia, or others seeking to profit from the aftermath of this war, to achieve greater influence without having Ukraine’s best interests at heart. President Zelensky said yesterday that

“we all have to realise that the more democracy we have, the greater its strength in our entire region. The more rule of law we have, the more law will work here on the eastern flank of Europe. And the more transparent Ukraine is, the uglier any corruption model will look in Russia.”

Can the Minister say a little more about how we and allies will continue to support the President’s agenda to strengthen and deepen Ukraine’s democracy and resilience?

In closing, I thank the Minister and the Government for their engagement with the Opposition and the House this week on this important conference. The UK is Ukraine’s most committed ally, and that strength of feeling and solidarity will not waver as the war endures, but we cannot take our foot off the pedal. We must use this week as a springboard to secure ever more lasting international support. This week’s demonstration of support will have been met with anguish in the Kremlin, as Russia is further frozen out of the global economy and the international community. Russia must be defeated not only on the battlefield of Ukraine, but in its economic warfare against the people of Ukraine. The focus is rightly now on the counter-offensive at the front and the bravery and courage of Ukrainian soldiers, but we across the public and private sector must show the same level of bravery and courage in our economic counter-offensive.

[Leo Docherty]

I thank the hon. Member sincerely for his questions and his support, which has been consistent and deeply appreciated. He is absolutely right in his analysis and judgment that the conference as a whole, as well as the discussions we have in the Chamber, show deep unity across British policies and among allies, which is noted in the Kremlin with some discomfort, so I am grateful for his support. He drew an interesting juxtaposition between the terrible damage inflicted upon Ukraine and the tremendous resilience and courageous spirit of the Ukrainians, on which I am sure the House would agree. It was on show yesterday at the conference, for which we are most grateful.

The hon. Gentleman asked about the timeframes for our underwriting of loans. Clearly we are in the primary stages of a lot of this fiscal support and underwriting, but these will be multi-year commitments. While we are in the primary stages, the abundance of opportunities means there is huge capacity to make significant impact, coupled with the work we have done on risk insurance. Again, it is probably too early to say, but the London capital markets and the London insurance market will be central to that effort to de-risk and to empower businesses to invest in Ukraine, and those two things together will leave the UK at the centre of the financial and structural reconstruction and resurrection of Ukraine.

The hon. Gentleman asked a pertinent question about Russian assets. The Prime Minister is on record as stating that, quite rightly, we are looking at all legal routes to ensure that the perpetrator of these appalling crimes and destruction pays. That work is being done at pace, in concert with allies. I cannot announce any more progress today. If it was easy, we would have already done it, but we are looking at that and hope to make progress soon.

The hon. Gentleman made some entirely relevant and interesting comments about NATO, which were relevant given that the Vilnius summit is coming soon. We are an energetic supporter of Ukraine’s path towards that defensive alliance. I cannot pre-empt any discussions or announcements at Vilnius, but the inevitability is that although Putin calculated that he would somehow deter NATO through his outrageous invasion of Ukraine, the NATO alliance has been strengthened as we show our unity towards our near ally.

The hon. Gentleman made good points about the reform journey. What was palpable during the conference yesterday, especially in the remarks of President Zelensky, was the clear appetite of the Ukrainian political leadership and society to take a path of reform right across their society and economy. They know that ultimately prosperity depends upon transparency and a good investor climate. They will be very forward in showing their progress.