- Considered in Committee
- [Caroline Nokes in the Chair]
- I remind Members that in Committee, they should not address the Chair as Madam Deputy Speaker. Please use our names when addressing the Chair. “Madam Chair”, “Chair” and “Madam Chairman” are also acceptable.Clause 1Provision of Loans or other Financial Assistance to UkraineQuestion proposed, That the clause stand part of the Bill.
- With this it will be convenient to consider:Clause 2 stand part.New clause 1—Reports on loans or other financial assistance to Ukraine—“(1) The Secretary of State must—(a) prepare reports on the operation of assistance provided in accordance with section 1(a),(b) lay a copy of each report before Parliament.(2) Each report must provide details of the amount of—(a) monies provided by the United Kingdom to Ukraine under section 1;(b) the United Kingdom’s share of the principal loan amount and interest accrued under the scheme; and(c) receipts of extraordinary profits from the Russian immobilised sovereign assets under the scheme.(3) Each report must also provide a summary of discussions between His Majesty’s Government and other G7 governments about discussions on any subsequent arrangements that are supplemental to or modify or replace the arrangements referred to in section 1(a), including any discussions concerning—(a) the range of Russian assets to which the arrangements might apply, and(b) the use of those assets.(4) The first report must be laid within the period of 6 months of the passing of this Act.(5) Each subsequent report must be laid within the period of 6 months beginning with the day on which the previous report was laid.(6) The duty under subsection (1) ceases to have effect 12 months after the arrangements referred to in section 1(a) or any subsequent arrangements of the kind referred to in section 1(b) cease to operate.”
- 4:54 pm
- It is a pleasure to serve under your chairmanship today, Madam Chair.We had a very constructive debate on Second Reading of the Bill. In particular, I wish to express my appreciation for the universal support that the House has shown for the provision of this vital funding. It is clearly a subject close to the hearts of many of us across the House. I look forward to further discussion on this important Bill today.As the Committee is aware, the extraordinary revenue acceleration is an ambitious scheme designed to provide Ukraine with a total of $50 billion in additional support, to be repaid by the extraordinary profits generated on Russian sovereign assets held in the European Union. The United Kingdom’s contribution of £2.26 billion is joined by pledges from the United States, the European Union, Canada and Japan.The Bill contains only two clauses. They are both straightforward. Clause 1 grants the Government the legal spending authority to fulfil the commitment we have made to provide Ukraine with the UK’s contribution to the extraordinary revenue acceleration. The clause empowers the Treasury or the Secretary of State to provide the Government of Ukraine with funds approved by Parliament as a result of the extraordinary revenue acceleration loans for Ukraine scheme, or“any subsequent arrangements that are supplemental to or modify or replace those arrangements.”Payments made under clause 1 will be those that are necessary to perform the UK’s commitment to the ERA scheme.
- In of course welcoming the Government’s measures, I note that the Minister referred to the extraordinary interest from the frozen Russian assets. Have the Government permanently set their mind against any possible actual seizure of the assets themselves, perhaps in agreement with other G7 members or EU members?
- I thank the right hon. Member for his contribution. As we debated on Second Reading, this is a commitment across G7 partners and with the European Union to take action on the proceeds of the assets that are held. For other complicated legal reasons, there is no intention to seize those assets at this time.
- I thank the Minister for his acknowledgement of the cross-party support for this measure, but to back up my colleague, the right hon. Member for New Forest East (Sir Julian Lewis), the $3 billion from the UK is generous and will make a difference, but the $300 billion in frozen assets would be utterly game changing. I accept the Minister’s argument at the moment about some of the more complicated legal issues. I know that he accepts the very serious situation that the Ukrainians are facing on the front, defending all of us. May I encourage him merely to continue to look at this issue and see whether he can work with G7 colleagues to find a way of unpicking the difficulties that he has highlighted?
- I welcome the hon. Gentleman’s encouragement, which I take in good faith. He will know that these matters are multilateral and subject to negotiation with other allies and G7 colleagues, but he will also know, as I am sure the whole House does, that we go into 2025 with a strength of resolve across those G7 countries to do all that we can to help Ukraine continue to mount its defence against the illegal invasion from Russia.Any other payments beyond the extraordinary revenue acceleration loans to Ukraine or any other country that are unrelated to the ERA scheme are not covered by the provisions of the Bill; this money is in addition to other grants and payments that have been referred to in the House previously.The clause contains provision for the UK to provide funding towards subsequent arrangements that are supplemental to, modify or replace the ERA. This provision allows for flexibility in the unlikely event that the scheme itself should significantly alter. It is not intended to be used without this change in circumstances.Clause 2 simply sets out the short title of the Bill.
- I thank the Minister for opening the debate. The Conservative Government were a vociferous advocate for mobilising Russia’s frozen sovereign assets to support Ukraine. We drove G7 and European partners to try to coalesce around the most ambitious solution possible to achieve that outcome. The announcement on 22 October marked progress on that journey and is a step in the right direction. We understand that the Government’s position is that the United Kingdom’s contribution should be earmarked for supporting Ukraine’s military expenditure, including on air defence, artillery and other equipment. The Opposition would support that. We need to persevere with our efforts to put Ukraine in the strongest possible position to counter Russia’s unprovoked and illegal invasion.Matters since Second Reading have been fast moving, so let me pose some questions to the Minister. Since Second Reading, the United States has given Ukraine $20 billion, funded by the profits of frozen Russian assets. That economic support forms a significant part of the overall $50 billion package agreed by G7 member nations and announced in June. The US Treasury said that it had transferred the $20 billion to a World Bank fund, where it will be available for Ukraine to draw. Money handled by the World Bank cannot be used for military purposes.The US Administration had initially hoped to dedicate half the money to military aid, but that would have required approval from Congress, which the President did not seek. Perhaps the Minister can update the House on what discussions the UK Government have had with the US Administration, Canada and the European Union about the use of funds provided for military purposes. Are any strings attached to the funds that will be provided by the UK? As the US has already provided its share of moneys anticipated in the G7 package, can the Minister advise the House on the timing of the UK’s contribution? I think it was made clear on Second Reading, but it would be helpful to have an update, given the move by the US since then.
- I want to speak to new clause 1, which I have signed, but I first want to reiterate my support for the Government and the Bill. As I said on Second Reading, it is absolutely right and proper that Russia pays for the damage it has done to Ukraine and its people. The Bill is an important first step in providing that financial assistance from Russian assets to Ukraine. Echoing the comments from around the Chamber, we need to move with allies towards a position of seizing Russian assets, but it is a positive first step that we are using the proceeds of the interest on those assets to support Ukraine.On Second Reading, I mentioned that“Canada has passed the Special Economic Measures (Russia) Regulations, which collects data on Russian assets, freezes them and publishes the value, which currently stands at 135 billion Canadian dollars”.—[Official Report, 20 November 2024; Vol. 757, c. 312.]I asked if the Government could disclose Russian assets held in the UK in the same way. New clause 1 goes a long way to providing that. It would ask the Government to lay a copy of a report before Parliament showing under the Act, as it will hopefully become,“monies provided by the United Kingdom to Ukraine”to the following level of disclosure:“the United Kingdom’s share of the principal loan amount and interest accrued under the scheme”and“receipts of extraordinary profits from the Russian immobilised sovereign assets under the scheme.”It would to an extent mirror what our close ally Canada has done. Although I do not expect to divide on new clause 1, I would appreciate it if the Minister would comment on how he will report progress to the House, disclose the level of Russian state assets that are here, and state how much of the interest accrued from those assets has been mobilised to support Ukraine in its war efforts.
- I thank the hon. Member for Leeds Central and Headingley (Alex Sobel) for outlining some of the things in the new clause we have tabled. I want to outline in some detail what is in new clause 1 and what we hope to achieve with it, and hopefully the Minister will be able to respond and outline some of his thoughts around reporting in particular.New clause 1 would impose a reporting requirement on the Secretary of State to keep Parliament informed about three critical aspects of our support to Ukraine under the scheme. The reports would detail the monetary support provided to Ukraine, including the amounts disbursed and how that fits into the broader multilateral agreement. That ensures transparency and allows Members and the public to understand the precise scale of our financial commitment. The reports would also provide clarity regarding our share of the principal loan amount and any interest accrued. Such information is vital for proper scrutiny and public trust, ensuring that funds allocated are achieving their intended purpose.Finally, and most importantly, the reports would shed light on any extraordinary profits arising from immobilised Russian sovereign assets under the scheme. While we cannot legislate here to seize those assets directly, the provision ensures that the question does not simply fade away. By requiring regular reports, we maintain focus on the issue and keep pressure on the Government to engage with our G7 partners. If, at some future point, there is an opportunity to use Russian state assets more directly for Ukraine’s recovery, Parliament will be fully informed and ready to act.The reports must highlight any discussions the UK Government have had with other G7 countries about future steps, including expanding the range of assets considered or using them in new ways. That ensures ongoing diplomatic transparency and accountability. Parliament will know if the Government are pushing for more ambitious measures internationally or if they are hesitating while others lead. In practice, the first report would appear within six months of the Bill’s passage, with subsequent reports every six months until one year after the relevant international arrangements cease to operate.
- It is a pleasure to speak in support of the Bill. The battle for Ukraine is one of the defining issues of our age. In February 2022, Putin launched an illegal and reckless invasion of a sovereign European democracy. Seeing that happen in the third decade of the 21st century was a sobering moment; we had seen nothing like it on European soil since world war two. It put beyond any doubt the revanchist and irredentist ambitions of the Russian regime, and the need for all freedom-loving democratic peoples to resist those ambitions at all costs.The Ukrainian people are fighting not just for Ukraine, but for all of us—for the values we hold dear: democracy, human rights, the rule of law, and freedom from global gangsters like Putin. By helping Ukraine to stand strong against Russian aggression, we are sending a clear message to dictators and autocrats around the world that we will not tolerate violations of national sovereignty or the use of force to change borders.
- Last week I met Ukrainian refugees in my constituency who conveyed not just their gratitude for our country’s steadfast support for their war action against Russia, but their sense of desperation because many of their visas run out early next year. Does my hon. Friend agree that the Government should act quickly to give those people the certainty that they will continue to be welcome in the UK for the foreseeable future?
- I agree with my hon. Friend about visas. We need to do everything we can to support the Ukrainian people, whether here in the UK or abroad.Our support for Ukraine is an investment not just in its future but in the security and stability of Europe and the world. Russia’s war against Ukraine has not only devastated the lives of millions, but challenged the very foundations of the international rules-based order. The brutality of Russia’s actions, the targeting of civilians and the displacement of more than 8 million Ukrainians are stark reminders of the atrocities that war brings to ordinary people. This is a tragedy for the Russian people, too. Many tens of thousands of Russian troops have been needlessly killed in Ukraine—victims of the vainglorious and deranged ambitions of their leader. Our quarrel is not with ordinary Russians; it is with the regime that oppresses and lies to them.Ukraine, meanwhile, has shown resilience, courage and an unwavering determination to protect its land, its people and its freedom. President Zelensky and the Ukrainian people have stood firm in the face of adversity. As I have said before, they are fighting not just for Ukraine, but for all of us. Let us make no mistake: if we do not send the weapons and financial support that the Ukrainians need to fight this war, we will one day have to send our sons and daughters to confront Putin and his regime.I am proud to say that our unwavering support for Ukraine unites Members on both sides of the House, and it has united our country, too. I am very proud to walk around my Livingston constituency and see Ukrainian flags in windows and gardens as a sign of our solidarity. From providing military aid to offering humanitarian assistance, and from imposing sanctions on Russia to offering refuge to those fleeing war, we have acted with purpose and resolve, and many British people, including individuals in this House, have opened their doors to Ukrainian refugees.
- At a time of existential threat to Ukraine, I have been heartened by the tone from across the House towards the Ukrainian people. It is critical at this moment in history that this House and all European Governments step up and do not give up. While I welcome the details of this short Bill, we should be focusing on the untapped countermeasure and counter-offensive that is at our disposal. Like a number of colleagues, I gently say to the Minister that we should think about the use of frozen Russian assets to support Ukraine in its non-violent economic and political reconstruction. The UN General Assembly has already endorsed an international mechanism for compensating Ukraine, but we cannot wait for the war to be over before we enact that countermeasure. Back in 2022, Ukraine lost 29% of its GDP, so if it only receives its compensation at the end of the war, that will be far too late.
- 5:15 pm
- By using the $300 billion in Russian central bank assets held by free and open countries now, we can give Ukraine a lifeline as it continues its honourable defence of its country. I believe that this action would be not just morally justified, but underpinned by sound legal grounds. The true centre of gravity in this war is Ukraine’s economic endurance against Russia’s strategy of attrition and ruin, but despite the efforts across Europe, there is currently a leadership vacuum when it comes to pushing through the use of frozen Russian assets to assist the decisive action that is needed for Ukraine’s victory. We are seeing Putin’s increasing isolation, with civil unrest in Russia, and it is imperative that we take advantage of that.