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

Debate between Lord Callanan and Lord Purvis of Tweed

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.

Syria (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2024

Debate between Lord Callanan and Lord Purvis of Tweed

Tuesday 15th October 2024 Grand Committee

[Lord Purvis of Tweed (LD)]

I thank the Minister for highlighting what are, in many respects, the neglected humanitarian needs of Syrians in an ongoing crisis. I believe that this debate will be shorter and I will contribute to that by reducing what I say, but I want to ask the Minister a couple of questions, if I may.

First, I acknowledge that the humanitarian exceptions are necessary in times of conflict and when there are problems, but there are consequential sensitivities, especially when they are operating in militarily controlled areas. Obviously, under international humanitarian law those providing humanitarian aid have access rights, and those should not be impeded, but in many times of ongoing conflict or where there are belligerents who occupy territory, they operate in very complex and often dangerous circumstances. I acknowledge that the previous Government considered that this was justified and that the current Government accept it, but is it necessary to have further monitoring mechanisms on the expansion of these exceptions, when it comes to ensuring that they will not be misused by those who control the territory, or is the Minister satisfied that the current reporting mechanisms are sufficient?

Secondly, when it comes to the extension to “relevant persons”, I note that non-UK-based organisations have been within the scope of UK sanctions. It is interesting to compare that to what we heard in the previous debate. Are the Government able to outline what the category of “relevant persons” would be as regards the delivery of certain services, and are those humanitarian services different from what had previously been provided?

Finally, as the Minister knows, there are many displaced Syrians who require humanitarian assistance. Part of my concern is the many Syrians who are just across the border in Lebanon at the moment, including across the whole stretch of the Bekaa valley and up to the area of Baalbek-Hermel. Is this measure linked to providing humanitarian support to Syrians, who may be displaced outside the country, or does it apply only to the provision of humanitarian assistance within Syria?

[Lord Callanan (Con)]

My Lords, I, too, thank the Minister for his speech and his words on this matter. As this Committee, and the House, knows, the people of Syria have suffered a great deal since 2011. Over 90% of Syrians live in poverty and in fear of Bashar al-Assad’s brutality, or the threats now posed by Daesh, the Iranian-backed militias and the Wagner Group. It is truly a lamentable state, and in many respects a humanitarian catastrophe, only compounded by the terrible earthquakes in 2023.

It is absolutely right that we continue to sanction the Syrian Government, and we welcome the Minister’s action on this. It is important that Ministers keep sanctions under constant review to ensure that we are not penalising those who deliver much-needed humanitarian aid, and I am sure the Government are doing that.

This instrument was, of course, originally laid by the previous Conservative Government and, therefore, the Minister will be unsurprised to know that we fully support it. As it widens the exemptions for humanitarian groups to access fuel under strict management systems, we hope that it will support those who are working to alleviate some of the terrible suffering of the Syrian people.

On the issue of the sanctions regime, have the Government looked at the proliferation of Syrian Captagon? Captagon is a highly addictive amphetamine, which is now produced in large quantities in Syria and, sadly, distributed worldwide. The MP for Rutland and Stamford in the other place has said that Syria is now effectively

“a narco-state, producing 80% of the world’s Captagon”.—[Official Report, Commons, 9/9/24; col. 626.]

A number of seizures have already cropped up in the UK, and I would be interested to know whether the Government are looking at this for a future sanctions regime or have developed a strategy on this.

I am delighted that this country has always stood up for the people of Syria in their time of need. We have given £4 billion of humanitarian aid to the people of Syria. I hope that the Government will continue to clamp down further on Russia, as we heard in the previous debate, and on the Syrian Government, who are one of Russia’s principal backers. As I said, these sanctions were tabled by the previous Government, and we wholeheartedly support them.

British Indian Ocean Territory: Negotiations

Debate between Lord Callanan and Lord Purvis of Tweed

Wednesday 9th October 2024 Lords Chamber

[Lord Callanan (Con)]

My Lords, the transfer of the British Indian Ocean Territory to Mauritius is a shameful day for our country. My noble friend Lord Blencathra, president of the Conservative Friends of Overseas Territories, wrote in the Daily Telegraph that this deal is “shoddy and short-sighted”,

“ignores the interests and wishes of the Chagossian people”,

has caused concern among the other overseas territories, and has

“learnt none of the lessons from Hong Kong”.

I could put it no better than my noble friend, and I echo his sentiments. Moreover, this transfer will cost the British taxpayer money and will threaten our national security. It is essential that Parliament has a vote on this matter.

On Monday, the Foreign Secretary said in the House of Commons that a Bill will be put to Parliament on this matter. However, later, in questioning, the Foreign Secretary seemed to suggest that this was a matter which did not need to be scrutinised by Parliament. After that, the noble Baroness said yesterday, during responses to an Oral Question, that there would be a treaty and amendable primary legislation on this deal. Therefore, does the noble Baroness agree that this is a matter for parliamentarians to debate? Can she confirm that noble Lords will have the opportunity to scrutinise and vote on such legislation before any final decision is made?

Given that the Government have stated that they will pay money to Mauritius under the deal, this is a matter that also concerns the British taxpayer. Yesterday, in response to a question from my noble friend Lady Sugg, the Minister stated that His Majesty’s Government never disclose the cost of sovereign military bases. A little scrutiny via a well-known internet search engine proves this statement not to be entirely accurate. For example, the Ministry of Defence has disclosed that for the sovereign military bases in Cyprus it costs £256 million a year to manage those facilities. Can the Minister give us some indication as to whether this deal will cost the taxpayer an equivalent sum of money?

In addition, yesterday, in the Daily Telegraph, an FCDO spokesman said that there would be

“UK funding to support Chagossian communities in Mauritius”.

If that statement is correct, surely the Minister should be able to disclose the cost, as presumably that money would be international aid and not under the Ministry of Defence’s remit. Can the Minister clarify this point, tell us who is correct, and perhaps tell the House how much that part of the deal will cost the British taxpayer?

This is the second great betrayal of the Chagossian people under a Labour Government. In 1967, Harold Wilson’s Government forcibly evicted the Chagossian people from their homes. Now, in 2024, the Chagossians, who have had no say in these negotiations, have been handed over to a foreign power that is in many ways very different from their culture and lifestyles. The Minister said yesterday that the Chagossian people would have

“the right to visit Diego Garcia”—[Official Report, 8/10/24; col. 1909.]

under this agreement. Can she confirm exactly how this would take place without compromising the military base and whether our allies in the US are aware of the commitment that she gave?

Chagossian Voices, which represents the Chagossian community in the UK and elsewhere, has said that Chagossians have been “consistently and deliberately ignored” and now feel “powerless and voiceless”. Peter Lamb, the Labour MP for Crawley, said that the decision was “very disappointing”, as Chagossians had been “let down again”. He said that, in the past 16 years, he had not heard “a single voice” in his local community saying that they wanted the islands to go to Mauritius. Can the Minister explain on what grounds this decision has been taken? Can she also explain whether this was a decision taken under international law and in what respect it reflects the self-determination of the Chagossian people?

We live in a world that is more dangerous than ever. There is war in Europe and the situation in the Middle East is escalating. This House knows all too well what threats the Chinese state poses to British democracy. Can the Minister tell us why this important and strategic British territory has been handed over to an ally of China? I am sure the House will agree that the noble Lord, Lord West of Spithead, who I am pleased to see in his place, is one of the most respected Labour voices on defence in this place. He wrote for Policy Exchange that

“the Chinese are pushing Mauritius to claim Diego Garcia and that China wants access to and control of the port and airfield facilities”.

This would be clearly unacceptable and would violate British interests.

Given that there was no pressing need to conclude this deal, why was it suddenly rushed through? The Government have said that there will be a 99-year lease on the base in Diego Garcia, with a right of renewal. Is this an absolute right to renew the lease or a right to request a renewal of the lease? Those are two very different things.

In summary, this agreement damages our national security, it does not fulfil the wishes of the Chagossian people and it will come at potentially great cost to the taxpayer. The Government still have many questions to answer on this shoddy deal and the Minister can be assured that we will return to it.

[Lord Purvis of Tweed (LD)]

My Lords, these Benches believe that the UK has a very special responsibility for the overseas territories and the people who live within them. There should be a fundamental principle that nothing should be decided about them without them. Their participation, and ultimately their consent, is of the greatest importance. I hope that the Minister will agree with that.

It has been interesting to see this suddenly becoming a highly party-political issue. The overseas territories and their sovereignty were not part of a negotiating mandate with the European Union after Brexit, for example. The noble Lord, Lord Callanan, was the Minister at the time. When it came to consideration for the overseas territories and their sovereignty in our key relationship with the European Union, the Falkland Islands were excluded. That has meant that they have been paying £15 million in tariffs to land fishing, critical for not only the economy but the sustainability and the sovereignty of the islands. Therefore, some vessels from the Falkland Islands have to be flagged as Spanish in order to access the single market, something that my party leader, Sir Ed Davey, challenged the Prime Minister on. I hope that we can correct this as a result of the previous Government’s omission with the OTs.

On Gibraltar, the prospect of the EU frontier force, FRONTEX, being at the border entry point into the United Kingdom is a result of the previous Government not including sovereignty of the OTs as part of a negotiation mandate. Both the Falkland Islands Government and the Gibraltar Government warned the previous Government of the consequences, and now this Government have to correct those errors.

The noble Baroness, Lady Sugg, said yesterday that the issue of the Chagos Islands’ sovereignty was a non-starter. It apparently took 11 rounds of negotiations for the previous Government to decide that it was a non-starter before the general election. A cynic might think that the previous Government knew that there would have to be some tough decisions on the Falklands for fishing, Gibraltar for EU security and Chagos for international law and thought that this was probably best left to their successors in government.

The Minister said yesterday in response to my question that there was not one Chagossian voice. If that were the case, the need for their participation and consent in the process going forward is critical. The House is well aware of my views on the deficiencies of the Constitutional Reform and Governance Act on treaty ratification in previous times. Labour, in opposition, had supported calls for resolutions on potential treaty areas which were of concern for human rights. The previous Government resisted this; I welcome the U-turn of the Conservative Party in now calling for a resolution on a treaty. I tried 17 times to call for Motions on treaties, which were resisted by the previous Government, so I hope that there will be consensus on this.

Perhaps the Minister will respond to some specific points. First, how will the financing with regard to the Chagossians’ relocation work, and what will be the timetable? How will location and relocation mechanisms be put in place and over what timeframe? Finally, regarding the Minister’s reply to me yesterday on primary legislation, what is the extent of that legislation, and will the Government commit to ensuring that the Long Title is sufficiently flexible for there to be scrutiny of the wider impacts? Of course there are geopolitical impacts; therefore, the timing of this decision, the treaty and the legislation, linked with the strategic defence review, are critical, as well as the ability for Parliament to resolve that the voice of the Chagossians will be heard and that consent will be a critical part of it.

Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Bill [HL]

Debate between Lord Callanan and Lord Purvis of Tweed

3rd reading
Tuesday 8th October 2024 Lords Chamber

[Lord Purvis of Tweed (LD)]

My Lords, following the noble Baroness, I congratulate her on her work when this was a Private Member’s Bill, which I was able to contribute to in the debate, even though I was not in the country to contribute to the Second Reading of this Bill. I thank the Minister for her remarks. These Benches have been very supportive of the Bill. It is not the biggest of Bills, but it is necessary for the reasons the Minister gave. I thank Mohamed-Ali Souidi in our Whips’ Office for his support and for helping us on our way to knowing all the details of these elements.

Following the noble Baroness, I say that this will no longer be a distraction or an issue to be discussed whenever UK representatives take part in international Commonwealth forums. I had the great privilege of serving on the executive committee of the CPA UK branch for a number of years, and I look forward to the AGM—I hope that many Members in the Chamber will be present and will support the CPA UK branch. In the upcoming CPA conference in New South Wales, the discussions among parliamentarians will be on the issues that the Minister raised—about the value and the benefit of the Commonwealth, rather than its status within the United Kingdom. So we support the Bill.

[Lord Callanan (Con)]

My Lords, the noble Baroness has my sympathy. I have lost track of the number of Bills that I have taken through this House, and I always confuse these final two stages and who should speak at what particular stage. The Lord Speaker got it wrong once when I was doing it—so we all make mistakes.

The noble Baroness is due congratulations for taking her first Bill through the House. I assure her that they will not all be as easy as this one, which has the support of all of us—we were supportive when we were in government and we remain supportive now. I too congratulate the noble Baroness on all her work when it was a Private Member’s Bill. The support across the House is shown by the fact that there were no amendments after Second Reading, so this remains an easy Bill for the noble Baroness. I promise her a more difficult time on the next legislation she brings forward.

Middle East Update

Debate between Lord Callanan and Lord Purvis of Tweed

Tuesday 3rd September 2024 Lords Chamber

[Lord Callanan (Con)]

My Lords, I thank the Minister, the Foreign Secretary and the Government for the Statement yesterday, but I found their position deeply disappointing. The Foreign Secretary produced no evidence that Israel is in fact breaching humanitarian law as it goes about its legitimate right of self-defence following the barbaric Hamas attack. To announce this on the day that funerals were taking place for the latest six hostages who were brutally executed by Hamas shows a profound sense of doing something at the wrong time.

The Government have decided to suspend less than 10% of the arms export licences and the UK supplies only about 1% of Israel’s defence equipment, so it is clear that, thankfully, this decision will have no material impact on Israel’s ongoing military operations. However, the process of doing this has caused a rift with our US allies and has alienated no less a person than the Chief Rabbi, as well as many other western Governments.

The Government now found themselves in a strange position. Only a matter of weeks ago, the Royal Air Force helped to shoot down Iranian missiles aimed at Israel, but they are now revoking some of the export licences that allow Israel to obtain the equipment to defend itself from those same missile attacks. It is clear to me that the reasoning behind this shameful announcement is nothing to do with humanitarian law and everything to do with appeasing a vocal, left- wing, pro-Hamas minority which resides, unfortunately, on Labour’s Back Benches in the House of Commons.

[Lord Purvis of Tweed (LD)]

My Lords, I welcome the Government’s decision in the Statement. I consider it balanced and welcome not only the Statement but the summary that was published. It means that this Government are aligned with the previous measured decision taken in 2014 to ensure that the United Kingdom does not issue licences where there is a valid concern about potential breaches of international humanitarian law. I believe that the rationale behind the Government’s decision is sound.

However, can the Minister confirm that this position is not final and that the process is dynamic? The Statement relates specifically to the IDF, and I note and share the Government’s view that nothing in these measures puts at risk Israel’s right to self-defence as an independent state and ally of the United Kingdom. Concerns have been raised, both by the United Kingdom Government and previously by the United States State Department review, about other elements of the Israeli Government. Some actions have included using civilian matériel to bulldoze civilian areas in Gaza to make them uninhabitable. This is a breach of an occupying power’s responsibilities. Some of this equipment was manufactured in the United Kingdom.

These Benches agree that much more needs to be done now to ensure that life-saving aid is provided to Gaza. The latest reports by United Nations OCHA for August have reported that only 69 trucks—not the minimum of 500 a day—are getting into Gaza. Some of this is obviously the responsibility of Hamas, which needs to be roundly condemned for preventing aid being distributed through its disruption, but there is also responsibility on the Israeli Government to ensure that there are no unnecessary blockages. I raised this issue with the noble Lord, Lord Ahmad, month after month, and I hope that the Minister will agree.

It has also been profoundly depressing that Hamas has prevented the International Committee of the Red Cross having access to those who have been hostages. But it also must be of concern that, as has been raised, the Israeli Government have refused access by the ICRC to places of detention for Palestinian prisoners. This cannot be. This is 2024, not 1924.

The situation in the West Bank is obviously of great concern, and the Statement highlights that. There have been 150 Palestinian children killed in the West Bank, and we have now seen the expansion of outposts. I am sure the House is aware that outposts are different from settlements because outposts are illegal under Israeli law, but their expansion is now happening with impunity. Will the Government consider the widening of the very welcome sanctions against settlers to those who are providing facilitation, empowerment and financing for the expansion of outposts? These Benches have called for those in government in the coalition to be sanctioned, so will the Minister reassure us that there is no limit to the consideration of who will be sanctioned to ensure that there is no impunity for breaches of Israeli law when it comes to outposts?

Finally, I share with many the terrible horror of the families of those who have been hostages. The news over the weekend was devastating. I met Rachel Goldberg-Polin during my visit to the region in February. Her humanity and that of her family were profound, and anyone who watched her eulogy at Hersh’s funeral will have seen that. It touched everybody’s hearts. She told me in my meeting that she had sympathy and affinity with the mothers of Palestinian children who have also been harmed as a result of this conflict. She told me that there is no competition of pain and tears, just a lot of pain and tears. What actions are the Government taking with our allies to ensure that any ceasefire agreement can be brought about speedily to ensure that those remaining hostages are released and the suffering of the Palestinians in Gaza and the West Bank can come to an end?