Russia: UK Companies

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Questions the effectiveness of Government measures, citing BP's continued investment in Rosneft despite promises to divest. Asks if it is shameful for British companies to profit from oil funding Putin’s war and queries whether BP should donate its Russian dividends to Ukraine’s reconstruction.

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Questions if the Government can take further action to prevent companies from profiting indirectly while the UK supports Ukraine.

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The right hon. Gentleman poses a number of very important questions. On a general point, he talks about strengthening the resolve of the people of Ukraine. This country can be rightly proud of every step it has taken to strengthen that resolve, and, I must say on record, of the leadership of two former Prime Ministers, as well as the current Prime Minister. They have shown extraordinary leadership appearing in Kyiv under huge pressure and supporting President Zelensky, alongside the support we have given to the Ukrainian armed forces and our massive humanitarian aid. I know there is consensus on that, but we should not in any way be defensive about the steps we have taken to support the Ukrainian people.

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There is no doubt that the UK has led the Ukraine war effort with the United States, and there is no doubt that the UK has led the international sanctions regime, but this urgent question is about UK companies. Does the Minister share my concern that DP Eurasia is selling pizzas in Russia, Unilever is selling Cornetto ice creams in Russia, and HSBC is still servicing Russian corporate clients? Does he think that is acceptable? What more action can the Government take to encourage those companies to remove their services and businesses from Russia and to divest themselves fully, rather than just give interviews to corporate magazines and offer warm words?

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It seems to me to ring a little bit hollow to say that companies are still trying to unwind their various operations in Russia. If some companies can do that quite easily, can the Minister explain to me why companies such as Infosys are still working in Russia?

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As a Member of the House of Commons Defence Committee, I visited Ukraine about three weeks ago. We were welcomed literally with open arms, so grateful are the Ukrainians for staunch British support. They know a hard winter is coming, so may I make a practical suggestion? They clearly need more weapons, but they also desperately need generators in order to keep hospitals and other critical facilities operating even if they lose main power stations to missile strikes. Is there anything the Minister and the Government can do to encourage UK companies of all types that might be able to spare even one or two generators from their stocks to get them to Ukraine, where they would be put to incredibly good use?

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I am sorry, but this is just terribly complacent. It is 3,218 days since the annexation of Crimea, and there are still British companies that seem to be invested in Crimea, let alone British companies—including Infosys, from what I understand; the Minister did not refute that point earlier—that are still operating in Moscow and Russia with a staffed office. He says he will not comment on individual companies, but he does it all the time: that is what sanctions are. That is the whole point of sanctions. Some £778 million-worth of Russian oil has ended up coming into 10 British ports this year, having been transferred from one ship to another on the route here. This is complacency. We have to have a total effort from every Government Department to make sure that we stop funding Putin’s illegal war.

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As the secretary of the all-party parliamentary group on Ukraine, and as a constituency MP with a large Ukrainian community, I gently prompt my hon. Friend the Minister to urge BP, if it is unable to sell its stake in Rosneft, to take the profits and commit them to the reconstruction of Ukraine and to aiding the victims of Putin’s barbaric invasion.

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Asked the Minister to write to the chief executive officer of BP to suggest that moneys gained by the company be used to pay for generators for Ukraine.

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Asked when the review on the oil price cap would take place to ensure further decisive action can be taken.

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Asked whether the Prime Minister agreed that private citizens in the UK should follow British businesses and sell shares in Russia.

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Asked whether the Minister would ensure conversations across Government to ensure that companies are not penalised for doing the right thing in relation to Russia.

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Asked whether the £580 million dividends due from BP should be used to provide aid to Ukraine.

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Asked about efforts to stop the illegal resale of Russian oil and gas.

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Asked whether the Government should not profit from activities that sustain Putin’s war.

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Asked whether the Minister would look again at what more can be done in legislation to ensure that no British company benefits Putin’s regime.

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May I raise the issue of a UK company, the Lawn Tennis Association, being fined $1 million by the ATP—Association of Tennis Professionals—tour for banning Russian and Belarusian players from all tournaments, including Wimbledon, with further sanctions potentially to come? That is on top of a similar fine and ruling from the Women’s Tennis Association. Will the Minister join me in condemning the ATP and the WTA, which have both shown an extraordinary lack of empathy towards the people of Ukraine?

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Fenner Dunlop has existed in Marfleet in my constituency since the company Fenner was established in 1861. It manufactures conveyer belts for the mining industry. It refused to trade in Russia and has done the right thing. As a result, it is reviewing the business in Marfleet and 71 jobs are potentially at risk. Everybody can see that the company needs to be commended—it is an excellent employer—but the reason the Minister is having difficulty mentioning specific businesses is because one of them is Infosys. Does he want to put his finger on why he is struggling to talk about that business?

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The Exchequer Secretary cannot have failed to notice the exhibition in Portcullis House showing the gross human rights abuses committed by Russian forces in Ukraine. As well as justice, the victims of these war crimes deserve compensation, but so far that has not come from seizing and distributing the assets of Putin’s allies or the Russian state. Why can it not come from BP and others’ Russian earnings?

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I fully support the right hon. Member for Barking (Dame Margaret Hodge) in her efforts. Would not one way to dissuade UK companies from investing in Russian oil assets and to encourage disinvestment be to prohibit any such companies from benefiting from the North sea windfall tax investment allowance?

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I thank the Exchequer Secretary for his answer to this urgent question. It is clear to me and to the House that he is doing his best to address the issue in a firm way. We have seen not only the continued involvement of UK companies in Russia, but the ongoing involvement of Russian companies and kleptocrats in infiltrating UK companies potentially to commit fraud. What steps will the Exchequer Secretary take to ensure that UK companies are discouraged from any involvement with the Russian economy and ensure that a harder stance is taken to protect our economy from the promotion of economic crime and infiltration by Russia itself?