Sanctions (EU Exit) (Miscellaneous Amendments and Revocations) Regulations 2024

Earl of Kinnoull Excerpts

Friday 24th May 2024 Lords Chamber

In conclusion, sanctions continue to play an important part in the UK continuing to build upon its already impressive sanctions capability. In the years since the landmark Sanctions and Anti-Money Laundering Act 2018, our approach to sanctions has evolved considerably to respond to changes in the world, and we will continue to work on sanctions to meet any new challenges. I beg to move.

[The Earl of Kinnoull (CB)]

My Lords, I will speak briefly, but I certainly welcome the regulations. I want to reflect on a couple of things before asking the noble Lord to confirm something.

First, I will reflect on the cycle of sanctions. The cycle is that there needs to be a co-ordinated approach between various nations which are thinking of doing some sanctioning, and then after that there is the putting down of the sanction mechanisms. It is important to realise that it is very complicated to put these down, particularly when there are names of either people or legal entities using the letters of other alphabets—even the G7, which I will come on to in a moment, includes a country that uses an alphabet different from ours. Most importantly, then, is the monitoring for effectiveness, which in turn starts the cycle again, with a co-ordinated approach and the putting down of any changes, et cetera.

Secondly, the sanctions are effective with a co-ordinated approach. The European Affairs Committee, like the European Union Committee before it, has written very often about the importance of having a co-ordinated approach, particularly with the European Union. I am not going to rehearse the reasoning behind that because we have written about it in many reports that were debated in the House. It was always a unanimous decision of each committee that co-ordination is important.

Thirdly, and finally, I think that has been superseded by the importance of co-ordination with the G7. In February 2023, the G7 started up the G7 enforcement co-ordination mechanism. From a G7 point of view, with the its great command of the productive capacity and GDP of the world, it is extremely important that there is now a G7 method of making sure that sanctions work.

My question for the noble Lord is therefore this. Can he confirm that, as I think is the case, these regulations build on that international regulation by making us more flexible and more able to reflect an agreement to carry out sanctions on somebody or something?

[Earl Attlee (Con)]

My Lords, I am grateful for the careful way my noble friend explained the purpose of the regulations. He touched on aluminium exports from Belarus. As I understand it, Russia exports large amounts of aluminium—though I may be wrong. Have we stopped that? Are we able to stop those exports? If we did stop them, it might have a serious effect on the price of aluminium. It is worth remembering that aluminium and other raw materials such as steel are produced to international engineering standards, so they are homogeneous.