Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2024

Lord Callanan Excerpts

Tuesday 15th October 2024 Grand Committee

[Lord Purvis of Tweed (LD)]

My Lords, following the very valid points made by noble Lords in this short but important debate, I offer the Government support for this. The Government were caught by a timetabling aspect, with the Summer Recess and then the conference break, so it is positive that they have ensured that there will be some parliamentary scrutiny and the ability for Members to ask questions on these matters. We have just seen the value of raising these pertinent points.

The Minister will not be surprised that I support these measures. He and I have been in many debates—in fact, all the debates on the Russian sanctions when the noble Lord, Lord Ahmad, was the Minister—and there was consensus across the Committee. I will ask a few further questions that have not been asked so far, and will perhaps emphasise some of the points that have been made.

First, I return to the issue of enforcement. Not for the first time, the noble Lord, Lord Alton, asked questions that I was going to ask. I would be grateful if the Minister could give an update on the securing of frozen assets that could be put to good use by Ukraine in this conflict. The Minister was a doughty campaigner on Chelsea when he and I were asking the noble Lord, Lord Cameron, about this in the Chamber. An update would be very useful. Is it still the case that we need to change any of the legislative or administrative processes in the UK so that we can carry out the repurposing of frozen assets into secured assets that can be put to use, around which consensus was sought in the G7? Or is it the Government’s position that we look purely at the EU proposals on the interest of assets—or, if assets are sold, that we use some of that? An update would be useful.

I periodically monitor the website of the Office of Financial Sanctions Implementation, which is tasked with ensuring that the sanctions regimes we put in place in the UK are properly enforced and policed. It is interesting that only one enforcement for circumventing UK sanctions has been carried out this year, to the tune of £15,000; since 2022 and the full invasion of Ukraine, there have been only four, totalling £60,000. Given the scale of the impact of the sanctions regime that the previous and current Governments have indicated, is it the Minister’s view that this is an accurate reflection of how the sanctions are being enforced?

We could look at it in two ways: either there is circumvention and the enforcement is not effective; or the UK is remarkably good at getting all our businesses to adhere to all of the sanctions. There may be an element of truth in both, but what is the Government’s assessment? That speaks to the valid point made by the noble Lord, Lord Alton, about the opportunity for a fundamental review not just of the overall impact of the sanctions—including an assessment of the impact of the sanctions, given the fact that they are in place until we rescind them—but of their enforcement.

The second aspect I wish to ask about is the services provided, either those in the shadow fleets or those that can now be determined under the sanctions regimes. I strongly support the Government with regard to not only persons who are directly or indirectly in the enterprises or linked with the fleets but those providing financial services to them. Why have the Government taken the view that legal services are not included in that? We all know that London in particular is the home of many legal services that have been part of the grey area of advice when it comes to these sanctions. I would be grateful to hear whether the Minister has any comments on that. We would certainly be supportive of ensuring that there is no loophole when it comes to financial services that can be masked as legal services; we need to ensure that there is no loophole for that.

I also wish to pick up on the point about our support for those in the fleets as far as the oil or dual-use goods on the shipping are concerned, as well as with regard to our position on the countries where they are landed. The point was made eloquently that many of those are our trading allies. I know that the Government have previously had frank—I hope—conversations, but surely we are now beyond the point of having frank conversations; we need to be considering actions.

In that regard, I would be grateful if the Minister could comment on the news from the end of August that the United States is moving towards secondary sanctions on those operating on financial services in jurisdictions where it believes that the sanctions regimes are being circumvented. I believe that secondary sanctions on financial institutions would be effective; I would be grateful if the UK were part of that. Indeed, what is the Government’s current position on considering secondary sanctions? This is obviously a sensitive diplomatic area, but I believe that it is important.

Can the Minister address a question that I asked his predecessor on jurisdiction? I acknowledge that these measures are UK-wide but I asked previously about the overseas territories when it comes to shipping and potential licences that are exemptions to them. We know that, when certain tankers land in overseas territories, they can operate under a different regime. I would be grateful for clarification that they are also covered by these sanctions.

I wish to ask a minor question regarding limited exemptions. Obviously, we know that there should be the capacity for some kind of exceptions in the regulations, but, to prevent an exception becoming a loophole, can the Minister confirm that the exceptions in these sanctions are defined across the G7 and our partners, so that there is no distinction between exceptions under these sanctions and those in the United States or the European Union? If the Minister could respond to these points, I would be grateful.

My final point is that the Government have our full support in ensuring that there is as much consequence for the Russian war economy as possible. No UK entities, whether in the City of London, finance, shipping or insurance, should have any part in supporting the Russian war regime. We continuously support the Government to ensure that there are no limits to what we can do to ensure Ukraine’s support.

[Lord Callanan (Con)]

My Lords, there is a great degree of unanimity on this subject because I, too, very much welcome these regulations. I particularly welcome the Minister’s assurance that the United Kingdom will continue to stand with Ukraine. These sanctions will clamp down on Russia’s so-called shadow fleet by targeting 17 Russian oil tankers. I very much welcome this action because, no matter how sly and cunning Russia may seek to be, I am pleased to see that the United Kingdom and its partners will continue to sanction Putin’s Government appropriately.

However, this is, of course, very much a game of legislative whack-a-mole: every time we clamp down in one area, another seems to pop up. I am particularly interested in hearing the Minister’s reply to the excellent questions from the noble Lord, Lord Vaux. It seems blindingly obvious that India and Turkey, in particular, are circumventing these sanctions by helping Russia to “launder” its oil into the rest of the world. I hope that His Majesty’s Government are raising these matters at the highest level with the Indian and Turkish Governments. I would certainly be supportive of any further action that the Government take because it is very important that the Russian war machine, as the noble Lord, Lord Purvis, correctly described it, is clamped down on. We should target any entities in the UK or the overseas territories that are helping it to do this, either in these regulations or in future ones.

Having said that, although we fully support these regulations, I want to ask the Minister a couple of questions in consequence. The regulations allow the Government to take a similar approach to that of the US Government and implement asset freezes against actors engaging in what is otherwise lawful activity. The law firm Eversheds Sutherland has claimed that the expansion of the designation criteria

“has the potential to create a considerable burden on entities from a due diligence perspective”.

That could just be special pleading, but I would be interested to hear the Minister’s response. Eversheds Sutherland also claims that it

“will not be enough to rely on sanctions screening”

to comply with these regulations, and that the UK Government have

“potentially created significant challenges for UK … businesses”.

Can the Minister inform the Committee as to what steps have been taken to help UK businesses comply with the regulations? What level of due diligence is required?

On this point, a briefing published on 28 August by Eversheds Sutherland stated that no persons have been designated under the regulations, as has been made clear. Can the Minister confirm whether that is still the case?

As I said, we fully support these regulations. I ask these questions purely in the nature of wanting to see their enforcement be as effective as possible. I will continue to support the Government and to hope that they will go further, if necessary, so that any UK entities, companies or businesses involved in helping the Russian war machine face the strongest possible action. We support the Government in this, but I would welcome the Minister’s assurances and answers to some of the questions that have been asked.

Gibraltar-Spain Border Checks

Lord Callanan Excerpts

Tuesday 15th October 2024 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I remind the House that it is 10 minutes of Questions now.

[Lord Callanan (Con)]

My Lords, Gibraltar is our gem in the Mediterranean, our strategic asset and, most importantly, a proud member of the British family of nations. Last Friday’s reports that the Spanish police were insisting on stamping passports and border checks are concerning. Let me be clear: whether this was due to a local Spanish border official and not the central Government, as the Minister for Development said in the other place, there should not be checks at the Gibraltar-Spain border. Can the Minister outline what steps His Majesty’s Government are taking to ensure that this does not happen again? Crucially, what discussions has the Foreign Secretary had with his Spanish counterparts on this matter?

The Gibraltar Broadcasting Corporation has reported a statement from the Spanish Foreign Minister that, for the UK-EU relationship to strengthen, it is important that the British Government say yes to Spain’s proposals on Gibraltar. This is concerning, as it seems to be a thinly veiled threat: “Accept our terms over Gibraltar or lose out”. Can the Minister assure this House that he will not abandon the people of Gibraltar and their desire to remain British? This incident at the Gibraltar-Spain border comes only a week after the decision to hand over our sovereignty of the Chagos Islands. Some might say that this is a coincidence, but it is easy to see the links. I ask the Minister to reassure this House in no uncertain terms that Gibraltar’s sovereignty is for the people of Gibraltar to decide and no one else.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office (Lord Collins of Highbury) (Lab)]

I have no problem at all in reiterating the double lock that this Government are committed to in relation to Gibraltar. We will never enter into arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their freely and democratically expressed wishes. We will never enter into a process of sovereignty negotiations with which Gibraltar is not content. Absolutely—there are firm commitments there.

I have a long association with Gibraltar. I have represented the workers in Gibraltar for many years, so I know what their wishes are. The current negotiations with the EU are making very good progress. The Foreign Secretary has had regular meetings with the Spanish Foreign Secretary. Those negotiations are at a point where we hope to make rapid progress. The idea that this negotiation has anything to do with BIOT is absolute nonsense, as the noble Lord well knows. It is a completely different arrangement. I will not go into details because other noble Lords might have questions in relation to that, and I will leave it to them.

Gaza Crisis

Lord Callanan Excerpts

Monday 14th October 2024 Lords Chamber

[Lord Callanan (Con)]

My Lords, in July, the new Government resumed funding for the United Nations Relief and Works Agency, which had been suspended by the last Conservative Government. In August, the UN then admitted that some of its staff may have been involved in the 7 October Hamas massacre and fired nine of them. What is the Minister doing to ensure that UNRWA properly vets its staff? Does he agree that it is completely unacceptable that UK taxpayers’ cash may have been used to finance those Hamas atrocities?

[Lord Collins of Highbury (Lab)]

I think the noble Lord knows that this Government, and the last Government, recognise the essential role of UNRWA in distributing aid into Gaza. However, that does not take away the concern about those who may have participated in the horrific events of 7 October. We have supported the Colonna review and will be ensuring that UNRWA and the United Nations take actions to ensure that that report is fully implemented. We are working with the Secretary-General and have resumed funding based on those assurances. It is appalling that nine members of UNRWA were involved in those atrocities, and we welcome UNRWA’s decisive action and support its decision to terminate the contracts of those individuals. This Government are absolutely committed, as were the previous Government, to ensuring that we can get aid into Gaza where it is most needed, and UNRWA is the vehicle to do that.

Sudan

Lord Callanan Excerpts

Friday 13th September 2024 Lords Chamber

[Lord Callanan (Con)]

My Lords, it is a particular pleasure to follow on from an excellent and powerful contribution from the noble Lord. This has been an extremely sobering debate, with some excellent contributions. I was struck by how many noble Lords, including the noble Lord, Lord Purvis, have visited the area—I made a note of the noble Lords, Lord Alton, Lord Ahmad and Lord Bellingham, the noble Baronesses, Lady Anelay and Lady Ashton, the right reverend Prelate the Bishop of Leeds, and, I am sure, a number of others. I feel at a bit of a disadvantage speaking in this debate and not having visited Sudan, although I have been to many other African countries. Many noble Lords have witnessed the tragedy of that country, and their insight has been very moving and has greatly aided our insight during this debate.

As many noble Lords have said, this dreadful war has now been going on for almost two years—there have been other tragic things in Sudan in the past, but this particular war has been going on for two years. The conflict between the Sudanese Armed Forces and the paramilitary group, the Rapid Support Forces, has already seen the deaths of up to 150,000 people, and 10.2 million people have been displaced, as many noble Lords have said, both internally and to other unstable areas in neighbouring Chad, Ethiopia and South Sudan, where they are adding to the already overcrowded existing refugee camps.

Fighting has been widespread throughout the country—let us remember that this is a nation three times the size of France. Much of Khartoum has apparently been destroyed and many other cities have been severely damaged. In a country still grappling with the legacy of events in Darfur from two decades ago, this really is a tragedy. I thought that it was summarised well by the US Secretary of State, Antony Blinken, who said that both sides in the conflict are guilty of war crimes. The RSF is accused of atrocities against civilians, including killing, rape and pillage, while the SAF aircraft have reportedly bombed civilian targets and critical infrastructure. Even before the current conflict, Sudan was home to more than 1 million refugees, the second highest refugee population even in Africa. Now, alongside the impact of climate change on food security, the World Food Programme estimates that the civil war has left half of the country, some 25 million people, in need of humanitarian assistance, creating what has been described as the world’s largest hunger crisis.

Despite the growing urgency of the humanitarian situation, sadly, hopes for an imminent resolution to the war are reportedly slim, particularly given the fact that the SAF did not even bother to send any representatives to the recent ceasefire talks in Switzerland. Instead, there now seems to be a serious likelihood that the conflict will get worse, pushing millions more into famine and potentially seeing the violence expanding to neighbouring countries such as Chad and South Sudan, which would barely be able to cope with such things. Of course, as has been said by many noble Lords, this could result in a further large-scale exodus of refugees from the region.

There are numerous challenges facing the international community in trying to alleviate this situation—mainly the lack of safe, consistent and unimpeded humanitarian access, which has to be one of the biggest problems that organisations such as the World Food Programme face in scaling up their assistance. Until recently, the Tine crossing into North Darfur was the only authorised cross-border route from Chad. The World Food Programme has said that the arrival of the rainy season has massively slowed the transport of vital aid via that crossing. Convoys have been slowed by muddy, near-impassable roads and forced to reroute where bridges have been damaged or destroyed. On 15 August, the Transitional Sovereignty Council announced the reopening of the Adre border crossing from Chad for three months. We should welcome that; it will help in the supply of humanitarian aid. This crossing is the most effective and represents the shortest route to deliver humanitarian assistance into Sudan, particularly the benighted Darfur region, at the scale and speed required.

I am pleased to say that, since that crossing was reopened for humanitarian convoys, WFP trucks carrying more than 1,200 metric tonnes and enough food supplies for nearly 105,000 people—still only a small proportion of those who need help—have crossed into the Darfur region. The World Food Programme is working to get food for half a million people through the Adre crossing and into the hands of people across Darfur as soon as possible. Can the Minister update us on what assistance the UK is able to provide to that excellent work?

Sadly, both warring parties are hampering the delivery of aid. The SAF and the Government of Sudan have imposed lengthy clearance processes and bureaucratic hurdles, while there are many challenges in RSF-controlled areas, with security threats to aid convoys and attempts to elicit bribes or fees for granting access—appalling conduct. We can be proud that the UK, particularly under the previous Government—and, I am sure, under the current Government and the leadership of the noble Lord, Lord Collins, who is doing a superb job—is one of several countries working to resolve the current crisis. We have issued several joint statements alongside the US and Norway and, as many noble Lords have pointed out, we are the penholder on Sudan in the Security Council. I would be grateful if the Minister could update us on the current situation and what work is going on; I am particularly interested in hearing his response to the questions posed by my noble friend Lady Anelay on financial assistance.

I am sure that the current Government will continue to be a vocal advocate for accountability for perpetrators of atrocity crimes. As many noble Lords have pointed out, there have been reports of widespread sexual violence and child recruitment. Due to some excellent open-source reporting, we have some detail of who on the ground is responsible for these crimes. We continue to press both sides to honour fully the commitments made in the Jeddah declaration, including allowing unhindered and safe humanitarian access and complying with obligations under international law.

The UK has already imposed two rounds of sanctions on the SAF and three on those operating under the authority of the RSF. In April, we announced three further rounds of sanctions. I would be interested to hear from the Minister how the further work to extend those sanctions regimes is going. The UK is in good hands under the leadership of the noble Lord, Lord Collins; I know that he will do a superb job following on from my colleague and noble friend Lord Ahmad. I very much look forward to hearing the Minister’s responses to some of the excellent points made in the debate today.

European Union (Notification of Withdrawal) Bill

Lord Callanan Excerpts

Monday 20th February 2017 Lords Chamber

[Lord Callanan (Con)]

My Lords, I draw the attention of the House to my entries in the register of interests, in that I provide advice and consultancy services to a number of European companies and organisations. It is also worth recording that as a former Member of the European Parliament, I hope when I reach retirement age in due course to benefit from a pension from that institution. More than seven and a half hours into this debate, I am conscious of two things. The first is the incredible stamina of the two Front Benches, who are doing an excellent job of looking as though they are still paying attention to what everyone is saying. The second is that virtually everything has been said but of course not everyone has yet said it.

Before the referendum, after much careful thought and consideration, I supported Brexit, and of course I support the Bill today. I am fully aware that the negotiations over our departure from the EU and the follow-on trade arrangements will be difficult, complicated and drawn out, and there will be much drama, but that is not what the Bill is about. Put simply, the Bill is about giving notice under the only legal mechanism available, Article 50, of our intention to implement the result of the referendum.

Like others, I greatly enjoyed the contribution in another place from the Member for Rushcliffe, Kenneth Clarke. I did not agree with him, of course, but I greatly enjoyed his contribution. I think he benefited from the notion of consistency. He opposed the idea of a referendum and voted against holding one because he thought it was a bad idea, and therefore he did not feel bound by its result. I did not agree with him on any of those issues but at least he has the benefit of consistency in his views. What I find difficult is the inconsistency of many of the speakers in this debate, people who produced leaflets saying, “It’s time for a real referendum on Europe”, and who enthusiastically supported the referendum Bill when it came to this House but now tell us that they somehow do not wish to accept the result of that referendum.

When they voted on the referendum Bill, what did they think they were voting for? Did any of them say in debate at the time that the referendum was only advisory and a glorified opinion poll, as someone has said? Indeed, did they make that point during the referendum campaign itself? Of course, the answer is no, they did not. In fact, the opposite is the case. The Liberal Democrats in particular went out of their way to tell us all how important it was, how it was vital for the future of the country: this was an opportunity finally to put this issue to bed and not have to talk about it ever again. That was why it was important for us all to go out to vote remain. Now that they have a result they did not want, they are all telling us that actually, it is time to think again and we should have another referendum in case we want to change our minds.

I fear that that is how I view many of the amendments spoken to tonight to either delay the result and notification of Article 50 or to bind the hands of our negotiators. Therefore, all the amendments are unwelcome. I want to see us become a good neighbour and friend to the European Union rather than what we have become, which is a reluctant tenant. The country has voted to leave. We should get on with it.

Informal European Council

Lord Callanan Excerpts

Monday 6th February 2017 Lords Chamber

[Baroness Evans of Bowes Park]

The noble Lord is right that we need to address the issues and needs of all sectors. That is why the work of the House’s EU committees is so important. I look forward to reading the report and am sure that excellent suggestions will be put forward about the kinds of issues that we need to think about during our negotiations.

[Lord Callanan (Con)]

My Lords, I thank my noble friend for repeating the Statement. Does she find it strange that many Members of this House and another place are threatening to vote against the imposition of Article 50 after voting in favour of holding the referendum in the first place? Does she recall any of them saying during the referendum campaign that, however people voted, they would ignore the result of the referendum, whatever it was?

[Baroness Evans of Bowes Park]

My noble friend is right. The Article 50 Bill is indeed a straightforward Bill: it is not about whether the UK should leave the European Union—that decision has been made—but about triggering Article 50.

European Council

Lord Callanan Excerpts

Monday 24th October 2016 Lords Chamber

[Baroness Evans of Bowes Park]

Perhaps the noble Lord will permit me to write to him with details on that issue.

[Lord Callanan (Con)]

My Lords, does not the failure of the EU to agree so far the trade agreement with Wallonia—which I note is being held up by the socialists in the same way as the TTIP agreement is being held up by the socialists in France—demonstrate that if the UK wants to have a free trading future, trading with all the great growing economies of the world, we need to do it from outside the EU?

[Baroness Evans of Bowes Park]

As I have said, we still hope that the EU will be able to sign a trade deal with Canada. We want to get a good trade deal with the EU. We have also been clear that we will not be following an existing model; we will have a bespoke arrangement. My noble friend is absolutely right that we need to be looking outwardly to countries across the world—the Commonwealth and others—with whom we can develop even stronger relationships than we have now.

Syria: UK Military Action

Lord Callanan Excerpts

Wednesday 2nd December 2015 Lords Chamber

[Lord Callanan (Con)]

My Lords, it is in debates such as this that this House truly comes into its own. I have listened with tremendous interest and respect to the many outstanding contributions on all sides from many noble Lords much more experienced in these matters than myself. However, I have been somewhat surprised to listen to some of the breathless commentary on radio and TV proclaiming in various forms that somehow, depending on a decision in the other place, we could be at war tonight. Surely, as part of our international coalition, in those terms we are already at war and have been since last September. We are discussing the extension of that action into Syria across a border that Daesh itself clearly does not even recognise.

Whatever we may think, Daesh and its affiliates clearly believe that they are at war with us and make no secret of it in their prodigious social media output. They have killed and maimed scores of our citizens and those of our allies. They also make no secret of their plans to kill many more, regardless of the decisions we make tonight. The key question for me is: will extending our current military action into Syria help to reduce or degrade their ability to attack us further? I believe that the answer to that question is undoubtedly, in a limited way, yes. Therefore, we should support that action and rely on the tremendous skills and bravery of our fantastic Armed Forces to prosecute that campaign.

It is also worth speculating on a “what if?” question. What if the atrocities that we saw in Paris recently had occurred—as, indeed, they very well might—in London or one of our other cities, as they may well in the future? We would undoubtedly wish to take retaliatory action against the people responsible. I am sure we would want to rely on our friends and allies in France and the United States to stand by us and support us in that action. In those terms alone, we should support our French allies and provide all the help and assistance we possibly can.

I respect those in this House and elsewhere who call for peace and negotiated settlements. Surely that is the ideal. But where is their evidence that Daesh is the slightest bit interested in any kind of peaceful settlement, irrespective of what we choose to do tonight? They are barbaric zealots. They are not interested in treating and talking peacefully with us, or in any kind of negotiated settlement. I am afraid that there is no non-violent alternative or solution to this. I totally accept that we must take action. We should support the Government in their campaign. I also believe that it will undoubtedly involve the use of ground forces in the future, I hope alongside Muslim Arab allies. I think that that is the way the campaign is going. Sadly, I see no alternative, so we should support the Government tonight.

European Council

Lord Callanan Excerpts

Monday 19th October 2015 Lords Chamber

[Baroness Stowell of Beeston]

I consider it my aim every day to bring amusement to the noble Lord, so I am glad that I achieved that today.

The Prime Minister has been consistent throughout this process. In his Bloomberg speech he set out his vision for Europe. He has been clear about the need to make the case for reform in all the discussions he has had with his various European partners. As I have already explained, detailed technical talks have been going on about the legal implications for change in these four areas. He will set out the detail of the changes that he wants to see in November and will then proceed with his negotiations and he will achieve his best for Britain. I have every faith that he will secure an outcome that will ensure we end up with a better relationship for the UK with the European Union. We will then put that to a referendum; I am pleased that the noble Lord is now supportive of the opportunity that we are providing to the people of this country.

[Lord Callanan (Con)]

I thank the noble Baroness very much indeed for her Statement. I welcome the Government’s renegotiation agenda and look forward to an ambitious agreement succeeding in due course. When the renegotiation is completed, do the Government intend to produce a full, detailed, White Paper setting out exactly what has been achieved and the consequences therefore in the referendum of a leave or a remain vote for everybody to see, discuss and debate?

[Baroness Stowell of Beeston]

Clearly, people will expect to see the results of the renegotiations and how the relationship with Europe has been changed and how these changes will address people’s concerns. The best thing for me to do is to quote the Chancellor, who told the other place in June that,

“the Treasury will publish assessments of the merits of membership and the risks of a lack of reform in the European Union, including the damage that that could do to Britain’s interests”.—[Official Report, Commons, 16/6/15; col. 166.]