Russia’s Grand Strategy

Part of the debate – in the House of Commons at 2:19 pm on 19 January 2023.

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Photo of Chris Bryant Chris Bryant Chair, Committee on Standards, Chair, Committee on Standards 2:19, 19 January 2023

It would undoubtedly add a fifth leg to a four-legged stool, but a four-legged stool is strong enough. I do not want to have to wait for that moment to be able to do this, because Ukraine needs the money now to be able to put food on the table and proceed.

There are two further issues that I ought to knock off in case the Minister says, “Oh, well, yes, this is a very good idea but it is terribly difficult to do, you know, and I can’t think that we can possibly get round to doing it”, which is what Ministers nearly always say. That was not meant to be an impersonation of the Minister currently on the Government Front Bench; it was an impersonation of any normal Minister when they get to the Dispatch Box and hear somebody proposing something difficult or courageous.

First, there is sovereign immunity. State assets are almost always protected from seizure by the concept of sovereign immunity. However, there have been exceptions, such as to satisfy damages awarded by international courts and arbitral tribunal. I would argue that Russia’s continuing refusal to comply with international human rights law—and this goes to the point just made—by attacking civilian housing and infrastructure, and its wilful refusal to follow orders of the International Court of Justice and the United Nations General Assembly are ample grounds for creating such an exemption.

There is also a point about retaliation. Some argue that if we seize their assets, they may seize ours. To be honest, I think it is pretty likely that the vast majority of British assets in the Russian Federation have already been lost, written off or expropriated by the Russian Government.

Finally, some say that countries may choose not to keep their reserves in the United Kingdom if they believe that they can be seized. However, if we severely restrict when reserves can be seized, that concern is minimised. Furthermore, if we acted in concert with our allies to seize the reserves, as we did when we froze them, we could create a powerful disincentive for states to engage in unlawful acts of aggression. I think we should do that. The reserves of an aggressor would never be safe, as there would be no country with a stable currency to protect them.

In the end, we want to ensure that a war of aggression, which has never been formally declared to be a war crime in itself, is seen to be a way in which an aggressor loses their assets. I urge the Government to consider that process carefully so that we can ensure that Russian state assets go to Ukraine as soon as possible.