Russia: Sanctions

Baroness Smith of Basildon Excerpts

Tuesday 21st May 2024 Lords Chamber

[Lord Cameron of Chipping Norton (Con)]

The noble Lord with all his experience makes a very good point. I will certainly take it away and discuss with colleagues across government whether there is more we can do to bear down on the price and whether that would be effective. It is worth remembering that we are talking about 600 ageing oil tankers transporting predominantly Russian oil around the world. They do not have the support of any G7 services, such as insurance, so whether it is insurance, sanctions, environmental measures or the price cap, we are looking at everything we can.

[Baroness Smith of Basildon (Lab)]

My Lords, I return to an issue that we have raised before, which slightly leads on from sanctions: the efforts that have been made—I think they have accelerated—to get interest from frozen Russian assets that we can then channel into Ukraine. The Foreign Secretary has pointed on numerous occasions to the importance of international collaboration on this issue. Can he say something in that regard about today’s developments in Brussels and the upcoming meeting of the G7 Finance Ministers? How quickly could this become operational, and will there be any need for primary legislation to ensure that we can implement it?

[Lord Cameron of Chipping Norton (Con)]

What I can say to the noble Baroness is that good progress has been made. To be frank, we would perhaps have gone for a more maximalist version of trying to use the frozen assets themselves, but the idea of taking the interest from the assets and using that for Ukraine to pay the interest on a larger loan—which could be as much as £50 billion—is the lead proposal at the moment, and is being discussed by Finance Ministers in the G7. I am confident that we will get there, but, as we do, it is very important to say that we do not rule out taking further action on the frozen assets themselves. We may well get to a time when Russia is, or should be, paying reparations to Ukraine for the damage that has been done. At that point, those underlying assets that we still hold could be very important.