National Security and Russia

Stewart Malcolm McDonald Excerpts

Monday 26th March 2018 Commons Chamber

[The Prime Minister]

I can find no reason to attribute to the right hon. Member for Islington North (Jeremy Corbyn) for the stance that he has previously taken on this issue. I hope that, like some of his right hon. and hon. Friends, he will take a different position in this debate.

As I was saying, to peddle such preposterous theories is unworthy of the Russian people. It is merely an effort to distract from the truth of Russia’s violation of international law. This unlawful use of force by the Russian state against the United Kingdom is a clear violation of the chemical weapons convention and a breach of the UN charter. This act against our country is the latest in a pattern of increasingly aggressive Russian behaviour, attacking the international rules-based system across our continent and beyond.

Russia’s illegal actions in Crimea were the first time since the second world war that one sovereign nation has forcibly annexed territory from another in Europe. Since then, Russia has fomented conflict in the Donbass, repeatedly violated the national airspace of several European countries and mounted a sustained campaign of cyber-espionage and disruption.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

I am very grateful to the Prime Minister for giving way. She will know that the 2015 strategic defence and security review states that state-on-state threats have dramatically reduced, but given what she has just said and what we all know, can she tell us whether the modernising defence programme will seek to update the part that underpins the SDSR?

[The Prime Minister]

We have been looking at the overall question of the threats to national security; we do that within the national security capability review. Of course, the modernising defence programme has come out of that, and it will look at the threats that we face and at the capabilities that we need in relation to that, but that will be set in that wider context of the overall national security capabilities that we need to defend ourselves in the future.

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[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

The events that took place in Salisbury are a defining moment for our relationship with Russia. With that state-sponsored act of terrorism, Russia crossed a line. We should be gratified to see the response of our friends and allies across the world and recognise the seriousness and importance of the events that took place two weekends ago. I was saddened to hear the Prime Minister’s update on the condition of the Skripals. Our thoughts are with them and all those who have been caught up in the terrible events in Salisbury. They have our best wishes.

At a time like this, we need cool heads, but we also need to deliver a clear message to Russia that the activities that took place two weeks ago cannot and will not be tolerated. Russia cannot commit such acts with impunity. We have seen the co-ordinated response from our European and other allies today of the diplomats that are being sent back to Russia. That sends a very clear message by saying to Mr Putin, “This is an opportunity for you to recognise where you are going with the acts that have taken place.” The world is saying in a unified voice, “You must change, but we are extending the hand of friendship to the people of Russia. There must be change in the way that Russia behaves.”

We on the Scottish National party Benches welcome today’s opportunity to debate national security because many unanswered questions remain and the UK must address its defence weaknesses, including the reckless way in which Scotland’s coast has been left vulnerable to Russian encroachment both by submarine and aircraft. There is no doubt that Russia has form in ignoring international law and undermining state sovereignty. Russia has also denied that it was behind a chemical attack on Alexander Litvinenko in November 2006. He died after drinking a cup of tea that was laced with radioactive polonium-210. A public inquiry into the killing concluded that the Kremlin probably approved his assassination.

Across Europe, we see flagrant disregard for international law. After Ukraine, Georgia, Moldova and Armenia signed association agreements with the EU in 2013, Russia saw those countries’ aspirations of closer ties with the EU as a threat to its influence in the region. That is in addition to Russia’s ongoing occupation in Georgia. The conflict has been prolonged and at times heightened as Russia carries out the illegal process known as “borderisation”. The illegal annexation of Crimea by Russia in March 2014 and the evidence that Russia supported separatist fighters in the east of Ukraine triggered an international crisis, but now we see Russia taking the lead in high-profile cyber-warfare—a 21st century threat that the UK Government need to recognise and be able to fully respond to.

US intelligence agencies described Russia as the world’s leading source of cyber-threats in 2015, and the trail of destruction is pretty telling. Russian hackers are accused of the September 2016 attack on German political parties and parliamentarians. In May 2017, they managed to hack into and leak email accounts linked to Macron’s presidential campaign. There is an ongoing investigation in the US on the role of Russian interference in the presidential election campaign of 2016. University of Edinburgh research has revealed that more than 400 Russian-run Twitter accounts that had been active in the US election had also been actively posting about Brexit during the EU referendum. The right hon. and learned Member for Beaconsfield (Mr Grieve) confirmed in November 2017 that the Intelligence and Security Committee here in the UK would investigate Russian meddling in both the 2016 EU referendum and the 2017 general election. These are serious events that have taken place, and they deserve an appropriate response not only from us, but from our allies.

The Russian threat is clear and Scotland’s pivotal place in the high north is a critical point for UK national security. In January 2018, the Chief of the General Staff, Sir Nick Carter, warned that the UK is trailing Russia in defence spending and capability. He noted that failure to keep up with Russia will leave the UK exposed, particularly to unorthodox, hybrid warfare of the kind practised by Russia and other potentially hostile states. Over the past 10 years, Russian air and marine activity off the coast of Scotland has significantly increased. Russian jets are regularly pressing on the Scottish coast—RAF jets were scrambled only in January—while Russian submarines are also regularly pressing on the Scottish coast; recent sightings include those in November 2017.

Dr Andrew Foxall, director of the Russia studies centre at the Henry Jackson Society noted:

“Russia’s submarines, which lurk off naval bases in Scotland, seek even more sensitive information: the ‘acoustic signature’ made by the…Vanguard submarines”.

It is an absolute disgrace that there have been no maritime patrol aircraft since the last Nimrod aircraft left service in 2012. Instead, Scotland, a maritime nation in a strategic position, relies on NATO allies deploying maritime patrol aircraft.

The UK Government have been well aware of the threat but have failed completely to do anything. The former Defence Secretary, the right hon. Member for Sevenoaks (Sir Michael Fallon), whom I see in his place, told the Defence Committee in October 2017 that there had been an “extraordinary increase” in Russian submarine activity in the north Atlantic.

[Stewart Malcolm McDonald]

Does my right hon. Friend lament the fact that far too often we have to rely on countries such as Canada, France and Norway to pick up the slack and that our NATO allies are concerned that, for all our projectionism around the world, we are not even looking after our own backyard?

[Ian Blackford]

That is exactly the point. We have lacked that maritime protection since 2012, and we have to deal with that as an absolute priority. We should not be relying on others to provide that maritime surveillance, particularly when we know that Russian aircraft and naval vessels have been coming up to the coast of Scotland. I call upon the Prime Minister to restate her Government’s commitment to purchasing all nine of the promised Poseidon P-8 aircraft to be based in Lossiemouth and, further, to give a firm date when we can expect these aircraft to be in place.

It is critical that the UK redouble its efforts to work with EU partners and the international community in response to Russia’s chemical attack in the UK. We in the SNP are concerned that the UK is isolating itself through Brexit, when working with our European friends is more important than ever. I call on the Prime Minister to have the UK remain a member of the EU’s Foreign Affairs Council post Brexit, given the obvious necessity for us to work together on matters of foreign affairs.

The SNP has led calls for UK Government action on tackling Russian money laundering and strengthening financial sanctions. We welcomed the Prime Minister’s statement on Wednesday 14 March and want real action taken on both the Magnitsky amendments and tackling the use of Scottish limited partnerships as a legal means to facilitate organised crime, money laundering and tax evasion. We are not against the existence of SLPs, which were introduced by statute in 1907, but it is stunningly obvious that the process of registration—the fact that one does not need to pay tax in the UK or publish accounts—should shame us. We need to correct the fact that we have made it too easy not just for Russians but for other criminals and those wishing to launder money to do so through the vehicle of SLPs, and we must unite as a House and make it clear that we will work collectively to drive out from this country those who want to use the UK to shelter ill-gotten gains.

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[Chris Bryant]

The hon. Gentleman is absolutely right. In relation to Ukraine, however, what angered me more than anything else, in a sense, was the fact that the whole point of the Budapest accord was that all who signed up to it, including Russia and the United Kingdom, were guaranteeing the territorial integrity of Ukraine so that it would surrender its nuclear weapons. I suspect that if that had not happened, Putin would not subsequently have gone into Ukraine.

That is precisely the sort of long-term, deliberate pattern of lying and territorial ambition that I think is characteristic of the man—let alone the murder of political opponents such as Boris Nemtsov, and the trials that, in so many instances, do not even attempt to pretend to be fair. I went to Mikhail Khodorkovsky’s second trial, which was clearly being run by a martinet of a judge who was simply taking orders directly from the Kremlin. Most extraordinarily, the criminal justice system is now being used in Russia to prosecute Sergei Magnitsky after his death. I sometimes think that those in the Putin regime want to believe that they are in a satire, because that is a way of cocking a snook at the rest of the world just to point out how much centralised power the regime has.

But even more disturbing in a sense for those who care about Russia and her people is the state of the economy: there have been dramatic cuts to the salaries and pensions of public sector workers in recent years; the average wage has fallen; and as for the death rate, people are dying younger now than they used to, which is an extraordinary phenomenon in a modern economy. The Russian economy was proclaimed some 10 years ago as one of the BRIC economies that was going to be the future of the world, growing and all the rest of it, but it is now stagnating, because it is to all intents and purposes a “monogorod”, an economy based on a single industry: petrocarbons. Russia’s economic growth rate is languishing at 1.2%. We might be having growth of only 1.2%, but an economy at its level in the world needs to be on 5%, 6%, 7% and 8% if it is not going to completely stagnate as a country and gross inequalities are not going to get worse.

What the Russians should have done for the last 10 years was build on their phenomenal human capital, because Russia is one of the most educated countries in the world, and tackle the corruption. Unfortunately, they have instead built on the corruption and tackled the education, so there is now a massive brain-drain of clever Russians leaving for elsewhere, and Russia has fallen further down the transparency list, as one of countries around the world with increasing corruption.

I personally find one of the most bizarre elements of the whole Putin charade his personal and his regime’s utter obsession with homosexuality. For a man who seems to like taking his shirt off more than any other political leader, that strikes me as phenomenally bizarre. [Interruption.] I gather he also likes Abba; what can I say?

What should the British response be both to this present situation and also to everything we have seen over recent years, as this is part of a pattern and should be seen as such? Some say we should tackle the Russian money that is swashing around in Britain, much of which might be dirty, and some say we should adopt a more robust political and defence posture. I think we need to do both. I know some are reluctant to tackle the financial issues and some are reluctant to tackle the defence issues, but we must do the two in harmony, which is in essence what the right hon. Member for Sevenoaks was saying.

[Stewart Malcolm McDonald]

On the defence side of what can be done, will the hon. Gentleman back the calls of myself and my hon. Friend the Member for West Dunbartonshire (Martin Docherty-Hughes) that we should ask our allies to stop allowing the Russian fleet to refuel in their ports?

[Chris Bryant]

Yes, and, indeed, one of the first things I did when I knew about the incident in Salisbury was check with the Spanish ambassador whether Spain is maintaining its posture of refusing to allow Russian boats to refuel in Ceuta, and indeed it is; it has been very strong on this and is absolutely resolute with us, as it has been for the last 10 years.

Turning to some of the financial aspects, earlier in the debate I asked the Prime Minister about the tier 1 investor visa. This has to all intents and purposes acted as a magnet for some Russians who want to place their money, beyond the grasping hands of others in Russia or in other domains, in the UK, and hardly any questions have been asked. I hope the Government will now do a full review of the tier 1 investor visa.

Secondly, trusts in this country and in the dependent territories are used as a means of obscuring from public view the real owners of major assets including land and property. That needs to end. I am happy for the trust system to remain, because in many ways it is a strong element of our financial system, but it must be fully transparent because otherwise it is far too easy for Russians to hide their money. I hope the Government will review this matter. They have been asked time and again whether they will consider making the beneficial ownership of trusts a public register, rather than one that is only available to the authorities. That would be valuable, because the public and journalists in this country have done a phenomenal job in recent years of managing to winkle out additional financial information that others might not choose to bother looking at.

We also need to bring in full financial transparency in the overseas territories. I know that the Minister who is going to be closing the debate agrees with this policy, and I hope this might be an opportunity to twist their arms a little further up their backs, because otherwise it is too easy for someone like Mr Deripaska to buy a property in London, only not really buy it but buy it via a trust based in the British Virgin Islands and have it completely obscured from view. Some of us were taken on the kleptocracy tour last week, including my hon. Friend the Member for Bishop Auckland (Helen Goodman), who is sitting on the Labour Front Bench, and one of the interesting facts is that quite often Russians are now buying houses in the UK deliberately for grossly inflated prices as a means of laundering their money via a third party. I hope the authorities are investigating that.

Turning to the more defence-related elements that we need to address, we must have properly sceptical investigation by the police and all the authorities—if necessary, the counter-terrorism authorities as well—of the 14 deaths of Russians in the last few years which have been suspicious, and not just those in the last couple of weeks. It seems unlikely that anybody would choose not to investigate, but it still seems possible that that might have happened. We also need full-spectrum readiness—more counter-intelligence, and more cyber-security—and we must also stand very strong with our NATO allies and, as the right hon. Member for Sevenoaks said, we need to devote more than 2% of our national income to defence.

We can see this through, but we will only do so by being robust and firm and steady—rather than by flip-flopping.

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[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

I appreciate the debate that we are having today on this very important issue. I was a bit disappointed, but not surprised, by the slightly shrill tone from Government Members during the speech of my right hon. Friend the Leader of the Opposition, but I must say that the tone has greatly improved. I commend my right hon. Friend for his response to these attacks. It has often been misinterpreted—I hope not deliberately, but one can never judge that totally—but it has been about proportionality and ensuring that we do not get ahead of ourselves and refrain from unnecessarily inflaming language such as, “Shut up and go away.” It is also worth noting that few have worked harder in this place than the Leader of the Opposition on peace, the protection of human rights and the rule of law.

I remember being asked in St Petersburg by the Minister of Education in the Russian Government at the time to leave that city after I condemned them for their ongoing human rights abuses. I wonder how many MPs in this Chamber can say that they have stood up to a Russian Minister and been asked to leave the country. I suspect very few, so it is important that we also respect the different ways in which many of us wish to express condemnation of ongoing human rights abuses in Russia without suggestions that some of us are traitors or without us having to face other horrible things that have been said in the media.

Diplomacy works, of course, as we have seen in this case—and the Government should be applauded for securing co-ordinated multilateral action and making a show of strength—but is that not exactly what the Leader of the Opposition called for when he said he wanted our action to be co-ordinated? It is welcome that the Government listened.

[Stewart Malcolm McDonald]

But does the hon. Gentleman agree that it was at least a tad naive to call for a sample of the nerve agent to be sent to the Russians? Was that not a mis-step by the Leader of the Opposition?

[Lloyd Russell-Moyle]

The important point was that a sample should go for independent verification and through all the appropriate processes. Whether it needed to go to Russia or The Hague was, of course, for The Hague to determine.

Diplomacy must, however, be backed by strong financial sanctions, and of course corruption is rife in many of our companies that channel Russian money. That is why we need stronger anti-corruption and money laundering laws. Several of us suggested amendments to the Sanctions and Anti-Money Laundering Bill that would have allowed the Government more easily to shut down brass-plate companies used in sanctions busting and money laundering. It would have been welcome had the Government accepted them, but they rejected them in the other place, because, they said, they could have infringed the human rights of sanctions busters. I hope they will reconsider.

We suggested sensible changes under which the burden of proof on sanctions busting and money laundering would not have had to come from the UK. Brass-plate companies tend to use the UK as a front, of course, and do not do the illegal or nefarious activity here, so a criminal bar for shutting them down will never be acceptable; we will always need an intelligence-led solution. Transparency around beneficial ownership will be vital, too, if we are to follow the money and hurt people who hurt our country where it matters—in their pockets.

That is the kind of robust leadership we can expect from the Labour party and which we could expect from a Labour Government—one who works within international frameworks, shuts down loopholes and brings our allies along with us, even if that means pausing and waiting a few moments. While Labour has called for cool heads, some Government Members have not, but I am delighted that we have now moved forward with co-ordinated action. There are, however, other things to do. Members have talked about the ongoing IT security threat that Russia poses. We must consider investing in security technologies based on crypto-graphics and tackling the real danger that Russia poses in systematically using social media—not illegally but not alone—to determine fake news. It is not the first time, of course, that Britain has had the media seek to infiltrate elections, and it will not be the last, which is why things such as Leveson and other media regulation inquiries are so important. That is why Leveson 2, which would have looked at standards in our media, much of which, of course, is also owned by foreign interests, would have been an important step forward.

There are things that we can continue to do—shutting down the corruption in our City would be one of them—but we must applaud both the Leader of the Opposition and the Prime Minister for keeping level heads and we must not refer to people as “traitors” or “enemies”. We are in this together.