Question to the Foreign, Commonwealth & Development Office:

To ask His Majesty's Government how the UK's international sanctions regime has impacted foreign direct investment in the UK over the past three years, and what analysis they have undertaken to assess this impact.

Answered by Baroness Chapman of Darlington - Minister of State (Development)

The Foreign, Commonwealth and Development Office undertakes a pre-designation assessment of the impact of a sanctions designation on the UK economy as part of the decision-making process.  The government also publishes impact assessments alongside sanctions-related legislation.

While these assessments seek to be as comprehensive as possible, it is difficult to analyse the direct impact of sanctions on foreign direct investment (FDI), given the complex mix of factors that affect FDI, including geopolitical tensions, regulatory changes, and trade agreements.

Question to the Department for Business and Trade:

To ask His Majesty's Government what plans they have to unlock opportunities from the free trade and digital agreements with Ukraine.

Answered by Lord Stockwood - Minister of State (HM Treasury)

The UK-Ukraine Political, Free Trade and Strategic Partnership Agreement is the central pillar of the UK’s trading relationship with Ukraine. Under this Agreement, tariffs on all goods are temporarily removed until March 2029 (with the exception of poultry and eggs which are liberalised until 31 March 2026), with businesses in both countries benefiting from this arrangement. The UK-Ukraine Digital Trade Agreement supports businesses to trade more efficiently and cheaply, including through secure electronic transactions, e-signatures, and e-contracts. The UK-Ukraine Trade Committee oversee these agreements and discusses how to enhance further our bilateral trade and investment.

Question to the Department for Business and Trade:

To ask His Majesty's Government (1) how the UK-Ukraine Digital Trade Agreement is being utilised to support the adoption of precision-farming, digital agriculture and the deployment of remote-sensing technologies in Ukraine, and (2) what support is being provided to the United Kingdom agriculture and agritech businesses to unlock export opportunities from the UK-Ukraine Digital Trade Agreement.

Answered by Lord Stockwood - Minister of State (HM Treasury)

The UK-Ukraine Digital Trade Agreement modernises our digital trade relationship, benefitting businesses and consumers in both countries. Our joint commitments, such as securing trusted cross‑border data flows and fostering open digital markets and digital trading systems, and continuing cooperation on digital issues support Ukraine’s adoption of data‑driven tools such as precision‑farming and remote‑sensing technologies. The UK-Ukraine TechBridge initiative, which assists the utilisation of the Digital Trade Agreement, facilitates connections between UK and Ukrainian tech sectors, building mutually beneficial commercial partnerships and helping Ukraine to secure investment into its dynamic technology sector. The initiative covers six priority sectors, including agri-tech.

Question to the Foreign, Commonwealth & Development Office:

To ask His Majesty's Government what assessment they have made on the impact of Ukraine's constrained exports on food-insecure countries; and what contingency plans are currently in place to ensure food-insecure countries are not affected.

Answered by Baroness Chapman of Darlington - Minister of State (Development)

Russia's illegal invasion of Ukraine triggered a sharp reduction in global grain supply and a huge shock to global markets. The most recent UN flagship report on global hunger - the State of Food Security and Nutrition in the World2025 - has confirmed once again that the war in Ukraine is a major driver of food price volatility and inflation, contributing to rising food insecurity worldwide.

The UK has provided significant support to ensure vital Ukrainian exports continue to reach countries that need them, including coordination with the UN and alignment with EU Solidarity Lanes to maintain export capacity and resilience. Since 2022, the UK has provided £11 million of support for the Grain from Ukraine initiative, and we welcome Ukraine's ambitions in expanding the programme to 'Food from Ukraine'.

Question to the Foreign, Commonwealth & Development Office:

To ask His Majesty's Government what steps they are taking to promote and encourage private investment in Ukrainian agri-processing through UK Export Finance and British International Investment.

Answered by Baroness Chapman of Darlington - Minister of State (Development)

At the 2023 Ukraine Recovery Conference, the Foreign, Commonwealth and Development Office announced expansion of British International Investment's (BII) remit to support private sector investment in Ukraine. BII has worked with the European Bank of Reconstruction to establish the Ukraine Investment Platform to facilitate co-investment in Ukraine from G7 and European countries including in infrastructure, financial services and agriculture. BII's investment in Ukraine to date includes providing trade finance to local banks to support trade flows of critical goods and supporting a leading Ukrainian agribusiness producer to help it maintain and expand exports to over 70 countries, benefitting more than 2,000 small retail stores and 2,500 farmers. UK Export Finance (UKEF) has made £3.5 billion of financial capacity available to support Ukraine throughout the war, supporting national priority projects for the Government of Ukraine. UKEF's financing has directly enabled Ukraine to access world-class UK defence, infrastructure, and energy capabilities.

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what steps they are taking to assist Ukrainian agricultural producers in maintaining and strengthening access to United Kingdom markets following the recent changes to European Union export quotas and trade measures.

Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

Under our Free Trade Agreement with Ukraine, tariffs on all goods are temporarily removed until March 2029, except for poultry and eggs, where the liberalisation is due to end on 31 March 2026.

The UK Government is now considering options for Ukraine’s future access on poultry meat and eggs.

Under the UK-Ukraine Enhanced (100 Year) Partnership Agreement, which was signed in January 2025, the UK has committed to broadening mutual market access and increasing agricultural cooperation between the UK and Ukraine; and providing support to Ukraine’s agricultural transformation, including on food production. The UK is engaging with Ukraine on these commitments and to support the successful development of Ukraine’s agriculture sector.

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what measures they are taking to support Ukraine's alignment with European Union agricultural and food standards, while safeguarding continued access to markets in the United Kingdom.

Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

Under our Free Trade Agreement with Ukraine, tariffs on all goods are temporarily removed until March 2029, except for poultry and eggs, where the liberalisation is due to end on 31 March 2026.

The UK Government is now considering options for Ukraine’s future access on poultry meat and eggs.

Under the UK-Ukraine Enhanced (100 Year) Partnership Agreement, which was signed in January 2025, the UK has committed to broadening mutual market access and increasing agricultural cooperation between the UK and Ukraine; and providing support to Ukraine’s agricultural transformation, including on food production. The UK is engaging with Ukraine on these commitments and to support the successful development of Ukraine’s agriculture sector.

Found: 2 August 2024) Anne Lambert CMG* – (Interim Chair) (from 16 September 2024 to 15 June 2025) Lord Risby