Ukraine: Reconstruction

Lord Fox Excerpts

Thursday 25th January 2024 Lords Chamber

Asked by

[Lord Fox]

To ask His Majesty’s Government what legal options, if any, they are exploring to seize any Russian central bank assets that are frozen in the United Kingdom’s financial system and using such assets to fund the reconstruction of Ukraine.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, the United Kingdom, alongside the G7, has underscored that Russia’s international law obligations are clear. Russia must pay for the damage it has caused to Ukraine. G7 partners are urgently discussing this; we are exploring all avenues to aid Ukraine in obtaining compensation from Russia, consistent with our respective legal systems and under international law. I assure the noble Lord that I will keep the House updated on significant developments, as I have done before, and update the Front Benches, where we can, on the actions we plan to take.

[Lord Fox (LD)]

I thank the Minister for his Answer; I hope he does not mind if I probe a little bit. There have been widespread reports that the US specifically is leading discussions about seizing up to £300 billion of Russian government assets. During the Economic Crime and Corporate Transparency Bill, responding to amendments that I tabled, the Minister, the noble Lord, Lord Sharpe, was very clear that the Government would not countenance seizing assets. So can the Minister say that the Government are now countenancing the option of seizing assets?

[Lord Ahmad of Wimbledon (Con)]

My Lords, of course we are working very closely, as I said in my original Answer, with G7 members, particularly the United States. On seizing assets, we will ensure that any action we take is legally robust. All elements, including asset seizure, are considered. In December last year, leaders at the G7 confirmed that, consistent with our respective legal systems, Russian sovereign assets in our jurisdictions will remain immobilised until Russia pays for the damage. I assure the noble Lord that we are working closely with the US in that respect.