Sanctions

Lord Ahmad of Wimbledon Excerpts

Tuesday 1st March 2022 Lords Chamber

[Lord Purvis of Tweed (LD)]

My Lords, these Benches also welcome the proposals and will work constructively with the Government to see them properly enforced. I also commend the Minister for the conscientious way he carries out his duties and his contact with the Front Benches—it is appreciated.

Last week, I was in Baghdad and then Beirut, where wounds of conflict are still not fully healed and where there was palpable shock at the grotesque and wanton destruction inflicted by the now pariah regime of Vladimir Putin and his desire to crush and subjugate a democratic European nation. Within Ukraine, areas I have visited and neighbourhoods of people I have met and know are being systematically targeted in premeditated and gross violations of international law and human rights norms. Will the UK fund and prepare a team of expert investigators and jurists to support the collection of evidence for pursuing human rights violations in The Hague against the Putin regime?

It was a solemn but nevertheless proud moment yesterday when President Zelensky’s party, Sluha Narodu, became an affiliate member of the Alliance of Liberals and Democrats for Europe, the sister party of us in this House. It draws attention to the fact that the democrats and President Zelensky in particular are now a beacon of democracy and hope in this continent. The president of the General Assembly of the UN, Abdulla Shahid, said yesterday that Russia’s actions are

“an affront to the founders of this organization and everything it stands for.”

The challenge ahead is immense. The Government need to continue to raise their game, and we will work with them in so doing.

The Government’s Statement indicated that the humanitarian assistance was £100 million of ODA and guarantees of up to $500 million in development bank loans. The UK does not provide development bank loans, so I assume this will be done through the World Bank. Last year, the Government cut contributions to the World Bank development bank by 25% and I do not think there is an increase to the Government’s 0.5% cap on international development assistance. Can the Minister confirm that support for those who are suffering in other conflict zones, such as Yemen, will not be squeezed in order to provide much-needed support for Ukraine?

The Government have acted to expand the visa scheme for those seeking refuge and safety in the UK but, as the noble Lord, Lord Collins, indicated and as this House very clearly indicated yesterday, we are not happy that the Government was restrictive. More needs to be done in this field.

We welcome the draft economic crime Bill to complement this work but have major concerns that the lack of resources provided to the NCA, the CPS and Companies House, to ensure that existing laws are enforced, will not be reversed. This new legislation will require new resources to ensure that measures are robustly enforced. Can the Minister commit to this? We should use the laws we have in place now to take action and ensure law enforcement are given the resources immediately to do so.

The Statement indicated that we would be moving on Belarus sanctions “in the coming weeks”. I appeal to the Minister. The Belarus regime is now fully complicit with the Russian regime in this conflict, and therefore it is obvious that the actions against Russia should now apply to Belarus. Here at home, can the Government make sure that there is urgent action to ensure that enablers who have supported the oligarchs will not be able to profit from any delay to the bringing forward of new legislation? There is an energy carve-out in the SWIFT restrictions and the banking restrictions. Can the Government use urgent anti-avoidance measures now in the City of London to ensure that lawyers, accountants and financiers will not profit from any delay before legislation is implemented?

Finally, the response of the EU, the US and the UK and others around the world has shown that we, working in co-operation and partnership, stand against illegal aggression and the increasingly desperate narrative of misinformation and disinformation from the Kremlin. We need immediacy and urgency in our actions here at home to support the call of the President of the United Nations General Assembly yesterday to return to peace.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I first thank both noble Lords for their strong support for the Government’s position. Indeed, I thank all noble Lords who have shown without any hesitation full support for the position that the Government are taking. As I said before, this is the position of a united United Kingdom, and I am grateful for the support.

I thank the noble Lord for his kind remarks. However, as I have said before, it is important to respond by saying that the challenges we may face as Ministers, shadow Ministers or in your Lordships’ House pale into insignificance when we see the challenges faced by the Ukrainian people. I agree with the noble Lord, Lord Collins, about the exemplary way in which President Zelensky is conducting himself. If there is a great example of modern-day leadership, he very much epitomises that. Earlier today, on my return from Geneva last night, I—like other noble Lords, I am sure—heard his very emotional address to Members of the European Union Parliament. It was not a scripted speech; he was speaking from the heart and reflecting the sentiments of the Ukrainian people. I thank the noble Lord, Lord Collins, and the noble Lord, Lord Purvis.

I know that the noble Baroness, Lady Northover, was also travelling over the weekend. We worked on a particular issue and I am grateful for the information she provided, which allowed us to expedite a particular issue in response to the Ukrainian crisis.

On the issues that the noble Lord, Lord Collins, raised, first, on the issue of the ICC prosecutor Karim Khan, yesterday while I was in Geneva I received a call from him. Today, to quote the statement he issued, he expressed his concerns,

“echoing those of world leaders and citizens of the world alike, over the events unfolding in Ukraine. Today, I wish to announce that I have decided to proceed with opening an investigation into the Situation in Ukraine”.

Of course, I assure both noble Lords that we will be co-operating with the ICC.

On the issue of the financial systems and other sanctions that have been announced, today has been a busy and rightfully important day when it comes to the United Kingdom’s response. If I may seek the House’s indulgence, we have seen announcements from the Home Secretary, the Transport Secretary, and indeed further announcements from the Prime Minister.

This is a fluid situation, so I express my apologies, as things are happening and we are trying to update. Events on the ground are extremely serious; reports are now coming in that the Russian army is moving forward on Kyiv. We are monitoring that very closely, working across government and, I assure both noble Lords, with all partners, including, importantly, our European partners. As noble Lords will be aware, my right honourable friend the Prime Minister is visiting Poland today, as well as Estonia, which underlines our commitment to work directly with our European partners but also the importance of the NATO defence alliance. My right honourable friend the Prime Minister is in regular contact with President Zelensky.

Today we have also made further regulations that introduce new measures that prohibit financial transactions with the Central Bank of the Russian Federation, the Russian Ministry of Finance and the Russian National Wealth Fund. These have been laid—I understand the usual channels will be in touch—and we will work through the appropriate debates on this later in the week.

My right honourable friend the Home Secretary— I gave this assurance to your Lordships’ House on Friday, when we had a debate on Ukraine—has made further announcements from the Home Office. Contingency plans are now fully effective, and she introduced new measures today, which were announced in the House of Commons, and has established an expansive Ukrainian family scheme. The scheme will be free, and those joining their family will be granted leave for an initial period of 12 months. Within this, they will be able to work in the UK and also access public funds. Secondly, there is the establishment of a humanitarian sponsorship pathway, which will open a route to the UK for Ukrainians who may not have family ties with the UK but who are able to match with individuals, charities, businesses and community groups in support of their presence here. Those who come under this scheme will also be granted leave to remain for an initial period of 12 months and be able to work and access public services. I mention those few key bullet points to highlight that substantial progress is being made.

On the issue of continuing support, which the noble Lord, Lord Purvis, raised, I assure him that we are going through the final rounds of our support for particular areas of the world, including Afghanistan, which I have been involved with. We remain very much focused on the humanitarian situations around the world, and I look forward to an update from him on his recent visits to both the Lebanon and Iraq.

My right honourable friend the Prime Minister has also announced additional funding. A release is being worked through, but I can share with your Lordships’ House that we initially stood up immediate emergency funding in the region of £8 million, but that has been increased substantially, and the overall economic and humanitarian support package now stands at £220 million, and £120 million of that is specific to humanitarian support.

I was in Geneva yesterday and met Filippo Grandi, who heads the UNHCR, and today my right honourable friend the Foreign Secretary also met him. An announcement is being made by OCHA through Martin Griffiths of a funding requirement and a new ask for funds to respond to this emergency. Of course, the UK is working very closely on that, and my right honourable friend the Foreign Secretary reiterated that in her meeting in Geneva today.

On the issue of the economic crime Bill, I listened carefully to what the noble Lord, Lord Purvis, said. The sentiments of your Lordships’ House have been reflected in how we have worked on it, and I am sure that noble Lords welcome the commitment that the Government have given in the Bill. I hear what the noble Lord says about Belarus, and we have increased the resource of our sanctions team. As the Sanctions Minister, I can speak from direct insight on how hard the team is working to ensure that we meet directly the requirements. There is still more to be done in this respect.

We campaigned very strongly on the issue of SWIFT, which led to the specific first step taken to exclude certain banks and institutions from the SWIFT payment system, and we continue to work on that.

We have also made an important announcement in the area of transport. Today, we have implemented a set of new transport sanctions which will prohibit Russian ships and other ships specified by the Secretary of State from entering ports in the United Kingdom. I believe that we are the first country to introduce such specific restrictions.

On defence co-operation, President Zelensky and Foreign Minister Kuleba have acknowledged that we have been one of the first countries to offer support in the form of military equipment required by Ukraine, and we continue to work in that respect.

My final point to noble Lords on the Front Bench and across your Lordships’ House is that the situation within Ukraine is very difficult. Yesterday, I met various humanitarian agencies that are working on the ground, some of which I will not name for their protection. They are still very much concerned with the issue of internal displacement and also that they do not know what the situation is in the various sieges that have been laid to towns. I know from the regular contact we are having with Foreign Minister Kuleba and President Zelensky through my right honourable friends the Foreign Secretary and the Prime Minister, my right honourable friend Minister Cleverly, the Minister for Europe, and me directly, that we are ensuring that we focus our support in the best way possible, led by the priorities needed as, today, we stand by the Ukrainian people and their Government.

[Lord Howell of Guildford (Con)]

My Lords, my noble friend the Minister will have noticed that, on Friday, China and India—in fact, the UAE as well—refused to condemn outright the Russian bloody assault by abstaining. Has he also noticed that China and India are, I am afraid, busy preparing special payments arrangements internationally with Moscow to avoid the effect of the sanctions we are seeking to apply? Perhaps China is beyond reach in this matter, but surely, we have some alliance and understanding with India. Can we not persuade India to join the rest of the democracies—it is the world’s greatest democracy, after all—before it goes on this path, which will be very damaging to our cause?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure my noble friend that, at both the UN in New York and the Human Rights Council in Geneva, two resolutions are currently tabled. We are working on an extensive lobbying campaign to ensure maximum support for the two Ukraine resolutions in both places.

On my noble friend’s point about the UN Security Council, he is of course correct that three countries abstained, and Russia also vetoed the resolution that was passed. We are dealing directly with and making our case to not just the UAE and India but China as well. Indeed, in terms of our lobbying effort through our ambassador and the team on the ground in New York, we were pleased that China did not veto the UN security resolution but abstained instead.

My noble friend makes valid points on India, and I know for a fact that my right honourable friend the Prime Minister will speak with Prime Minister Modi today or tomorrow.

[Lord Alton of Liverpool (CB)]

My Lords, on the question of justice and war crimes, does the Minister recall the calls made in your Lordships’ House on Friday last for a referral to the International Criminal Court? Indeed, has he had a chance to read the letter that was signed by a number of distinguished Members of your Lordships’ House and sent to Karim Khan QC, the prosecutor at the ICC, over the weekend? In addition to what he has told the House about what Karim Khan said in his statement, did the Minister read these words:

“There is a reasonable basis to believe that both alleged war crimes and crimes against humanity have been committed”


in Ukraine? As well as the importance of bringing Putin to justice, is it not right that we do as the noble Lord, Lord Collins, said and salute the courage and bravery of President Zelensky? Also, is it not particularly offensive to hear Putin and the Kremlin describe him as a Nazi when you consider that his grandfather had three brothers who were murdered by the Nazis in the Second World War?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I am sure I speak for the whole House when I say that in President Zelensky we see someone principled who is standing by his people. I remember that my last visit to Ukraine took place at the exact time of the marking of the Holocaust, which engulfed the Ukrainian people. President Zelensky is the grandson of someone who survived the Holocaust, so let us reflect for a moment on that. I say to those who accuse him of Nazification: his grandfather was a survivor of those evil Nazi acts.

The noble Lord referred to Karim Khan, the ICC prosecutor. In Friday’s debate, I said that many people around the world should perhaps reflect on what was being said in your Lordships’ House and the quality of the contributions, for it was a debate informed by and based on expertise, insight and experience. As I said, I had a conversation with Karim Khan yesterday and we exchanged messages today. I have seen his full statement, which includes the words articulated by the noble Lord. He is looking specifically at that referral mechanism.

[Lord West of Spithead (Lab)]

My Lords, do we and our allies have a view of what a satisfactory end state would be for us? Do we have a mechanism for stopping the sanctions, or some of them? We have a bad track record of doing that in the past. For example, is it just a case of saying, “Get out of Ukraine”? If so, does that include the Donbass, Crimea, Georgia, Moldova, Donetsk and Abkhazia? We must have a view of where we want to go and what we want. Do we have that clear view, and do our allies have it?

[Lord Ahmad of Wimbledon (Con)]

My Lords, the noble Lord makes an important point. Of course, the clear view has to be led, and rightly so, by the Ukrainian Government and the Ukrainian people. They have kept the issue of diplomatic negotiation very much open. Yesterday, President Zelensky, notwithstanding his own assessment of what the outcome would be of those negotiations, sent a team to the border with Belarus to meet directly with Russian representatives. I have seen the statements that came out of that, and they probably reflected President Zelensky’s pessimistic view. Our view is clear and is shared by the Ukrainian Government. Yes, ultimately, there has to be a peaceful settlement, but to allow diplomatic means to prevail, President Putin must pull back from the eastern part of Ukraine to allow those discussions to take place. To set preconditions while occupying sovereign land is no way to say, “Let’s seek a diplomatic solution.”

[Baroness Warsi (Con)]

My Lords, can my noble friend clarify the position of British citizens—civilians—who may wish to travel to the Ukraine to fight, as there has been some mixed messaging from the Foreign Office? That would greatly assist those who are keen to help Ukraine, but who would be endangering themselves and Ukrainians if they were to take that position.

[Lord Ahmad of Wimbledon (Con)]

My Lords, my noble friend is right to draw attention to this. Of course, the sentiments of your Lordships’ House reflect those of any person with humanity at their core: you want to help in the best way possible. The best advice that I can offer to anyone seeking to travel to Ukraine is to look at the Foreign Office advice, which is very clear: do not travel to Ukraine. There is a lot that you can do within the United Kingdom to provide support, and we are extending support to near neighbours as well. They may wish to help with humanitarian efforts, but the situation in Ukraine is very fluid. We are recommending that no one travel there, and I hope that this Foreign Office advice is heeded.

[Lord Tyrie (Non-Afl)]

My Lords, what lessons do the Government draw from the fact that on sanctions, the supply of arms and the treatment of refugees, the UK, like the leaders of many western European countries, is being pushed by public opinion into much more far-reaching support for Ukraine than those leaders had originally intended? Does that not strongly suggest that further measures should be taken and more support given to Ukraine and to Zelensky’s Government?

[Lord Ahmad of Wimbledon (Con)]

My Lords, I can certainly speak for the United Kingdom Government. For example, through Operation Orbital we were providing defence support directly to Ukraine immediately after the occupation of Crimea. We have a long-standing relationship with Ukraine: indeed, President Zelensky and Foreign Minister Kuleba have talked of the strong support they have received from the United Kingdom over a number of years. However, I acknowledge that when there is a crisis of the magnitude we now see in Ukraine, with the sovereignty of Ukraine being directly usurped by Russia, it is right that we, the Europeans, and all international partners look to do what we are doing, and do more. There is more still to be done.

[Lord Wallace of Saltaire (LD)]

My Lords, I think that everyone in this House would like to compliment the Minister on the enormously valuable work he has done and continues to do on this; we all appreciate it. However, can he take back to his colleagues that saying all the time that we are leading on this and leading on that is not the right tone? To say that we are working with others, we are co-operating, we are in solidarity with our partners and allies would be much more constructive in the current context.

Can I also ask about the domestic dimension of sanctions? I was very struck by the paragraph in the Intelligence and Security Committee’s Russia report which said that the penetration of British society and politics by wealthy Russians resident in London has gone so far that it is now in some ways difficult to untangle. We must now see what we can do to untangle that. Can we be assured that the Government will not only do their best to untangle it, but report to Parliament on what they are doing?

[Lord Ahmad of Wimbledon (Con)]

My Lords, on the noble Lord’s second question, perhaps I can answer it with his first suggestion. To untangle such challenges we must work together, which is exactly what we are doing. We are working here in the United Kingdom and with key partners to negate the negative influence of Russian money and illicit finance in the United Kingdom and more broadly. As he will have seen from the sanctions we have introduced, they are reflective of that very objective. I am sure he will find that, as further legislation comes forward, further sanctions are applied and we have discussions on the economic crime Bill, we can untangle some of those issues.

On the issue of leadership, I have served with the noble Lord in government and I am sure he agrees that there are times when the United Kingdom leads the way, and I am proud of that. The richness of our history, our experience and our expertise reflects that. It is that leadership which also leads to enhanced partnerships, and that is exactly the approach we have adopted in this crisis.

[Lord Browne of Ladyton (Lab)]

My Lords, I welcome the Statement. It is certain that cryptocurrency will be used extensively to at least attempt to avoid these sanctions. There is no question about that. I think the Government are alert to that; the Foreign Secretary’s answers in the other place certainly indicated that they were. For the second day in a row, can I try to persuade a Minister to get the Financial Conduct Authority—

“the anti-money laundering and counter-terrorist financing … supervisor of UK cryptoasset businesses”

under the money laundering regulations—to remove the list of non-compliant crypto- asset dealers from its website? It is advertising money launderers to crooks and kleptocrats. Can they please be removed? There are 220 of them. It is not just their names: their websites and sometimes their mobile phone numbers are there.

[Lord Ahmad of Wimbledon (Con)]

They say that when you say it once, you say it twice; I hope the noble Lord might not need to say it thrice. I certainly note very carefully what he said. Of course, cryptocurrency provides an opportunity to weave a way out of some of the sanctions restrictions that are being applied, as he rightly articulated. I noted very carefully what he said and I will respond with more detail in due course.

[Lord Mackay of Clashfern (Con)]

My Lords, I think that a Russian oil tanker was expected today in Orkney. There was some question about whether it had been sanctioned. I wonder whether the Minister can resolve that point, which is rather important, because Orkney is of course a very important part of the world.

[Lord Ahmad of Wimbledon (Con)]

I cannot answer specifically on that vessel. It depends on what time it came in, because the measures announced by my right honourable friend the Transport Secretary came into force at 1500 hours. It really depends on where the vessel was when those sanctions came into force.

[Lord Hogan-Howe (CB)]

My Lords, I am no lawyer, but it seems that this is an illegal war. We have used sanctions, properly, to try to influence a Government and a country to stop invading another country and to stop military people carrying out their tasks. We have now moved to a time to try to influence the people on the ground. That means the actions of either military or intelligence leaders. I follow the point from the noble Lord, Lord Purvis, that investment in our ability to investigate crime would be wise, but also in international prosecutors and the investigation they are about to embark on. The time is now to collect digital evidence on the ground to influence soldiers there, to stop them carrying out barbaric acts if we can and either publish their faces or identify them now, because an investigation after the event will be too late to prevent the damage they might cause today. It is clear that we will see conflict between military people and civilians over the coming days. This is the time to try to influence that behaviour. The digital world is just one way to achieve it.

[Lord Ahmad of Wimbledon (Con)]

My Lords, the noble Lord makes a very practical and helpful suggestion. We are collecting evidence to support whichever jurisdiction might follow through on the crimes being committed on the ground, including those that will be investigated by the ICC. We will be in full support of that with whatever evidence we have; we will submit our own intelligence that we gather on the ground. Equally, as he may well be aware, we are a strong supporter of the ICC. We will work co-operatively with whatever evidence we can provide to it.

[Lord Cormack (Con)]

My Lords, my noble friend made several references to legislation. Does he accept that it would be right for such necessary legislation to be given priority over all other legislation? It is absolutely essential that we spend our time dealing not just with domestic Bills if there are Bills that can have a real influence on this ghastly situation.

[Lord Ahmad of Wimbledon (Con)]

My Lords, on the immediate issue of the sanctions, we have been working through the legislation, and I am grateful to the usual channels. Normally, there is a 28-day period for a debate to prevail after legislation has been laid; we are currently conducting the debates within 24 or 48 hours, so that partly reflects the situation. On the wider legislation we are bringing forward, I know the respective Front Benches and the usual channels are working very hard to accommodate the legislation required.

[Baroness Meyer (Con)]

My Lords, I too congratulate the Government on all that they are doing for the Ukrainian people. Given that the oligarchs who are close to Putin use lawyers, tax advisers and other such people, what can the Government do to force them to release any information that would follow the money? To be honest, a lot of the money is Putin’s, and he uses oligarchs to move it around.

[Lord Ahmad of Wimbledon (Con)]

My Lords, my noble friend again raises an important point. In our debate on Friday, the noble Lord, Lord Carlile, also raised the point that the oligarchs are extremely wealthy and can employ lawyers to good effect. That is why our sanctions regime is both robust and tested in terms of legal thresholds before it is applied, to minimise any litigation that may take place.

[Lord Teverson (LD)]

My Lords, is the Minister having sufficient conversations with our overseas territories and Crown dependencies to make sure that none of our financial sanctions is bypassed in any way?

[Lord Ahmad of Wimbledon (Con)]

My Lords, this question has come up before—I believe that the noble Lord, Lord Wallace, asked it too. The legislation will take effect directly in our OTs as well. Of course, my right honourable friend Amanda Milling, the Minister with responsibility for the overseas territories, is dealing directly with the OTs on this.

[Lord McDonald of Salford (CB)]

My Lords, the noble Lord, Lord Collins of Highbury, mentioned the interest in depriving Russia of permanent membership of the Security Council. Can the Minister confirm that the arrangement made in December 1991, supervised by my noble friend Lord Hannay of Chiswick, to have Russia as the successor state to the Soviet Union is legally watertight, so that the only way Russia can be deprived of permanent council membership is if Russia votes in favour of it?

[Lord Ahmad of Wimbledon (Con)]

I think the House will take the lead of the noble Lord who, as a very distinguished former Permanent Under-Secretary at the Foreign and Commonwealth Office, speaks to what the requirements are. This has been the challenge, frankly, at the Security Council. I am proud—if I may use the word—of the UK’s leadership in its lack of use of its veto power, unlike other P5 countries. The noble Lord is correct in that respect. However, we have seen other actions; for example, the Foreign Minister of Russia could not travel to Geneva for the Human Rights Council earlier today. For those who say the sanctions are not working, I point out that the logistics of restrictions on Russian-registered aircraft over certain countries prevented him travelling. When he spoke, a majority of delegations left the room. There are measures or stands that you can take within the diplomatic network that show not just your immense dissatisfaction but your rejection of the actions of a member of the permanent five.

[Lord Sterling of Plaistow (Con)]

My Lords, has my noble friend the Minister had conversations with the P&I clubs? As we sit here, loads of tankers are leaving every day with oil for Russia. If you take away the insurance of the tankers themselves, and what they are holding for the owners, that could disrupt them hugely in making the dollars that they much like to make.

[Lord Ahmad of Wimbledon (Con)]

My noble friend speaks with detailed insight of the industry. I have gone through, at a summary level, what the new transport measures will mean. I will of course reflect on what he said and then write to him specifically on whether those prohibitions will apply. The fact that Russian ships cannot now enter any British port since 3 pm today will partly address the question he put to me.

[Baroness Foster of Oxton (Con)]

My Lords, as on other days, today we are witnessing acts of genocide and war crimes against the women and children of Ukraine, and we know that Putin’s ambitions will not stop there. At the same time, we have a phenomenal amount of air power just sitting on the ground across Europe. Notwithstanding the time it would take for sanctions to kick in, what exactly would it take for NATO to take direct action to stop Putin in his tracks?

--- Later in debate ---

[Lord Ahmad of Wimbledon (Con)]

My Lords, my noble friend talks of air power. One thing is very clear: we fulfil our obligations through NATO. As my right honourable friend the Prime Minister said in response to a question put to him today, we are not in the position of putting in place measures that provide the basis for British military aircraft conducting combat directly with Russian combat aircraft. At this juncture of the conflict, our support is very much to the defence of Ukrainian sovereign territory. My right honourable friend has made it clear, as has my right honourable friend the Defence Secretary, that we stand solidly behind the defensive support we can give to Ukraine. We are also providing training support and other defensive material.