Monday 5th September 2022

(1 year, 8 months ago)

General Committees
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Rehman Chishti Portrait The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Rehman Chishti)
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I beg to move,

That the Committee has considered the Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2022 (SI, 2022, No. 748).

The statutory instrument was laid on 4 July under the powers in the Sanctions and Anti-Money Laundering Act 2018, also known as the sanctions Act. The SI has been considered and was not reported by the Joint Committee on Statutory Instruments and the Secondary Legislation Scrutiny Committee, and it was approved by the House of Lords on 20 July. It amends the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 and introduces new measures targeting the financial, trade and transport sectors.

These enhanced sanctions represent our latest response to the continued support by Belarus of Russia’s invasion of Ukraine, and they aim to deter Belarus from engaging in further actions that destabilise that country. Since 24 February 2022, Belarus has facilitated Putin’s illegal invasion of Ukraine. Lukashenko has openly supported the fabricated narrative used by the Kremlin to justify Putin’s illegal and unprovoked assault of Ukraine, and he has allowed Russia to launch troops and missiles from Belarusian territory and fly jets through Belarusian airspace.

The measures are designed to further ratchet up pressure on Belarus, building on the previous designation of more than 50 Belarusian individuals and organisations for their role in aiding and abetting Russia’s invasion. Let me be clear: Belarus’s behaviour is aiding and abetting Putin’s aggressive actions in Ukraine. The measures build on the wide-ranging sanctions already imposed on Lukashenko and members of his family and his regime for their role in violating democratic principles and the rule of law in Belarus and oppressing civil society, democratic opposition leaders and independent media. I want to make it clear that our grievance is not with the Belarusian people, who are themselves the principal victims of Lukashenko’s repression, but with Lukashenko, his regime and its backers for supporting Putin’s illegal invasion.

The financial sanctions introduced by this instrument will ban more Belarusian companies from issuing debt and securities in London, and prevent them from obtaining loans from United Kingdom banks. The sanctions will also prohibit UK citizens and entities from providing financial services to the National Bank of the Republic of Belarus and the Belarusian Ministry of Finance. That will help to prevent Belarus from using its foreign reserves in ways that undermine the impact of the international sanctions that the United Kingdom is imposing with partners around the world.

John Baron Portrait Mr John Baron (Basildon and Billericay) (Con)
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I thank the Minister for introducing the instrument to the Committee, and I am sure that he will have no trouble getting it passed. Like many colleagues in this place, I have been banned from visiting Russia because of our apparently Russophobic approach and rhetoric. I wholeheartedly welcome the measures, but may I urge the Minister to go further? The bureaucracy in Belarus extends beyond 50 individuals. Given how active those individuals are in supporting Russia’s invasion, surely we can do more to target them and the bureaucracy more generally.

Rehman Chishti Portrait Rehman Chishti
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I thank my hon. Friend for his remarks. I have a huge amount of respect for him and for his expertise in foreign affairs—he sat on the Foreign Affairs Committee. He is absolutely right that we must do everything we can to ensure that all levers possible are applied, across the board, to individuals contravening the legislation passed by this Parliament though their unacceptable behaviour in support of Putin’s illegal actions in Ukraine.

My hon. Friend will agree that the difference between us and those in Belarus and Russia is that we believe in democracy. Therefore, the sanctions that we impose in the United Kingdom have their legislation and criteria set through Parliament. We will use every lever possible to hold those individuals to account. We are making it very clear that we are looking at individuals in all sectors and areas where we feel that they are aiding and abetting Putin’s aggressive behaviour in Ukraine. I note his point about ensuring that the measures are continually monitored and reviewed to ensure that we catch the widest number of individuals who need to be held accountable.

The trade sanctions contained in this instrument include a ban on the export of dual-use goods and technology for all purposes and on the export of goods and technologies for critical industries. That includes high-end equipment such as microelectronics, marine navigation equipment, aircraft components, quantum computing components, and oil-refining goods and technology. That in part answers the point made by my hon. Friend on the widening of the criteria under which individuals can be held responsible for the unacceptable activity in Ukraine. That will place further constraints on Belarus’s military, industrial and technological capabilities and on refining petroleum, one of the country’s highest value exports. The measures include a ban on the export of luxury goods to Belarus and a ban on the import of iron and steel from the country.

Finally, the legislation introduces new sanctions on transport. It extends measures introduced in 2021 against aircraft, giving us the power to detain and deter registered Belarusian aircraft. It also introduces new shipping measures, prohibiting Belarusian ships from entering UK ports and introducing powers to detain and deregister ships. I commend the instrument to the Committee.

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Rehman Chishti Portrait Rehman Chishti
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I am grateful to members of the Committee for their contributions to today’s insightful and timely discussion and I will address the important questions that they have raised. I thank the Committee for its full support for these regulations. The House is united in agreeing that we must do everything we can to stand by the people of Ukraine. The United Kingdom Government at every level, supported by all political parties, took decisive military, economic and diplomatic action to support the people of Ukraine, and we will continue to do that.

I turn to hon. Members’ specific questions. I thank the Opposition spokesman for his constructive dialogue and support, and for raising the issues that need to be raised. We improve regulations and legislation only by engaging in discussion, interaction and reflection, and the process for dealing with the situation in Ukraine has been constructive throughout.

The hon. Member for Cardiff South and Penarth, my hon. Friend the Member for Basildon and Billericay, my right hon. Friend the Member for Maldon and the hon. Member for West Dunbartonshire mentioned the numbers. We must do more. We will absolutely do everything we can to support the people of Ukraine and ensure that those responsible for this unacceptable behaviour are brought to account in order to deter others from such unacceptable actions and deeds.

The figure of 50 was mentioned, but I want to set out the overall mapping, in terms of sanctions, that we have applied to Belarus. The hon. Member for Cardiff South and Penarth and others asked about that. On the designations and criteria that we have applied, under the Belarus regulations 108 individuals and 10 entities were designated pre-invasion. That comes back to the question asked by my right hon. Friend the Member for Maldon. He asked what we have done about the unacceptable behaviour and aggression, and the fraudulent elections in Belarus. What have we done to hold individuals to account—not now, with regard to the Ukraine situation and the Belarus Government aiding and abetting Putin’s illegal invasion, but what did we do then, and what have we been doing since? Some 108 individuals and 10 entities were designated pre-invasion, and an additional six entities were designated in response to the invasion, as they are significant to the regime. They include Alexander and Viktor Lukashenko. The United States has not designated 69 of those individuals, but we have.

The hon. Member for Cardiff South and Penarth says that we need to work with international partners. Absolutely, but the United States and United Kingdom have different legal criteria. Nobody in this House would say to me that we should do anything outside our legal criteria. We will do it in the right way, by applying our legal criteria.

The second set of designations come under the Magnitsky sanctions and the global human rights legislation. Eight individuals have been designated, including Alexander and Viktor Lukashenko, on human rights grounds. Only one of those is not designated by the US, although its designations are via its Belarus programmes, rather than the global human rights regime.

Then we come on to the Russia regulations. We now have a separate entity for Belarus, but from February, when we were looking at Ukraine, we were using the Russia regime. Under the Russia regulations, 47 individuals and seven entities were designated following Russia’s invasion of Ukraine. Some 41 of those individuals are not sanctioned by the US, and the remaining six are. All those entities are sanctioned by the US. Five of the individuals sanctioned by the US and all seven entities are sanctioned under the Belarus programmes, rather than the Russia programme. The remaining individual is sanctioned under the Russia programme.

I have given that answer because I wanted colleagues in the House to know the different regimes that we have applied sanctions under.

John Baron Portrait Mr Baron
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I do not for one moment question the Minister’s good intent. What he said there is absolutely spot on, but what is troubling some of us is that given the size of the Belarusian Government bureaucracy and the state generally in pursuing its aims, which we all condemn, 50, 100 or even 200 are probably not enough. If we are to send a strong message to Belarus and any other people aiding and abetting the invasion of Ukraine, we have to get tougher and perhaps be even quicker in our response. Will the Minister bear that in mind?

Rehman Chishti Portrait Rehman Chishti
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Yes. I thank my officials for the note over here, but let me just answer that point. I am trying to multitask in reading, reflecting and answering; hopefully my lawyer’s training helps in that regard. I get the point raised by my hon. Friend. I think the officials get the point. We have to do everything we can. I have tried to give an overall picture with regard to the number of individuals, but his point is that looking at the scale and size of the country, we have to do everything we can to ensure that as many of those individuals who need to be held accountable are held accountable. I get that, and no doubt officials here get that, and it will be taken back and looked at. I will write to him specifically on that point with further details so that he gets the fullest answer.

I want to address another point raised by the hon. Member for Cardiff South and Penarth, about why we are replicating measures made on 28 April. Why are we doing it now? His point was with regard to the timing of the different regulations. The new measures are the latest in a co-ordinated package of measures that the UK has introduced in response to Belarus’s support for the Russian invasion. The point I made earlier was that we put a number of measures and designations into play prior to the invasion. The new criteria that we have put in place extend and broaden the group of individuals who can be held accountable for the unacceptable behaviour of aiding and abetting Putin’s financial actions, and supporting the aggression in Ukraine.

Since the invasion of Ukraine, we have launched a series of sanctions targeting Belarusian individuals and organisations who have aided and abetted this reckless aggression. We designated 47 Belarusian individuals and seven Belarusian entities under the Russia sanctions regime. We also introduced a 35 percentage points increase in duties on a range of products imported from Belarus. Those measures are in addition to the wide range of measures that we have already imposed on Belarus under our Belarus sanctions regime, which include sanctions on Lukashenko and members of his family, and on other individuals and entities.

With regard to the third point that the hon. Gentleman raised on the issue of steel, iron, aviation, space and goods, I will take that matter away and make sure that it is answered as fully as I can, to do justice to the answer, rather than reflecting on it now. I will make sure that he gets a full answer on that specific point.

Stephen Doughty Portrait Stephen Doughty
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Will the Minister give way, briefly?

Rehman Chishti Portrait Rehman Chishti
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I will raise the point with my officials tonight, to make sure that it—irrespective of what may happen tomorrow or the day after—can be put into the system today and fully looked at. I say that to my officials as the Minister at this point in time.

None Portrait The Chair
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Order. On balance, I think it might be better if the Minister addressed the House rather than his staff.

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Rehman Chishti Portrait Rehman Chishti
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Sure. I am grateful, Mr Hosie. I was trying to reiterate that the point was so important that it needed to be conveyed, taken away and looked at. I get the point on that very basis.

Stephen Doughty Portrait Stephen Doughty
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I did get a helpful letter on 17 May from one of the preceding Ministers, who is now the Education Secretary—who knows what he will be doing tomorrow? He gave me some further detail on the resourcing, and helpfully said that the task force now has 150 members of staff. Can the Minister give some clarity on whether they are permanent or temporary staff? Secondly, there was no detail on when the new staff—the Office of Financial Sanctions Implementation—are going to be in place, just that the recruitment had commenced. It is crucial that we boost those numbers as quickly as possible. These are complex measures and I know that is why some of them take some time. We have got to have the resourcing in place to ensure that they can be brought forward speedily.

Rehman Chishti Portrait Rehman Chishti
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With regard to the answer given by the former Minister on the figures, I want to be frank and clear, because it is a specific question on the numbers and details that the hon. Gentleman has asked. I can ask officials to look at that specific point, and at the breakdown he has asked for. In my early days, when I came in as Minster, I went down and met and thanked the sanctions team. The work that they do in the evolving circumstances is with the latest information and evidence available. We have increased the numbers of staff and officials working on sanctions. The question that the hon. Member asked is about a specific breakdown; I will ensure that he gets a full update regarding that specific point.

Stephen Doughty Portrait Stephen Doughty
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It is not just the Minister’s Department; it is also the Treasury, because, crucially, if any of these sanctions are to work in practice, it is also about companies and individuals, and for those who might be trading or engaging with them to be properly informed and have the right information to actually implement them. Crucially, UK businesses, and others, who might have had partnerships or engagement with Belarusian individuals must have that information, so I hope that the Minister will raise it with the Treasury.

Rehman Chishti Portrait Rehman Chishti
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I will ensure that every Department that is relevant and connected, with regards to the imposition of sanctions and the figures that he has asked for, makes sure that it answers his question fully and frankly because I think that is absolutely important. In my time in this role, I have tried to engage with parliamentarians across the House and now the questions must be fully answered. If I have missed any specific points raised by any Member, I will ensure that the officials read the document and come back and answer those specific points.

My hon. Friends, it is the responsibility of the United Kingdom and our allies to support Ukraine and take tough action against Putin and those who support his illegal invasion. In co-ordination with our allies, we continue to introduce the largest and most severe economic sanctions that Russia has ever faced, and that we have ever imposed. I am led to believe that the latest figures we have, regarding the situation in Ukraine and Russia and the sanctions that we have imposed, is more than 1,000 individuals and more than 100 entities.

On a recent visit to Canada and to the United States, I have had conversations with our counterparts to ensure that we do all we can, in a co-ordinated manner, and in line with the criteria set by the British Parliament, to impose the swiftest and firmest sanctions that we can regarding individuals, whether in Belarus or in Russia, linked to the aggressive, unacceptable behaviour that we are seeing in Ukraine. My right hon. Friend the Foreign Secretary has committed to going further, and we will continue to do so until Putin ends this war of aggression. It is a matter for Putin to end it. Therefore, until that happens, we will do everything that we can, using all possible levers, to ensure that those who are responsible for that unacceptable behaviour are held to account.

I thank the Committee for their insightful contributions and support for the Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2022. I hope the Committee will support the regulations. I know the Committee has said it will, but I say that again, and thank the Committee for its support regarding the regulations. On the points that have been raised by the Opposition spokesman and others, I will ensure that the officials take those away and respond to them in as full a manner as possible.

Question put and agreed to.

Resolved,

That the Committee has considered the Republic of Belarus (Sanctions) (EU Exit) (Amendment) Regulations 2022 (SI, 2022, No. 748).