Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022

Debate between Lord Clarke of Nottingham and Lord Fox

Thursday 3rd March 2022 Lords Chamber

[Lord Clarke of Nottingham (Con)]

My Lords, I fully support these sanctions and I congratulate the Government on the packages brought forward. I look forward with interest to the replies to be given to several of the detailed points raised about exactly how firmly they will be enforced.

I will look forward a little. The medium to long-term reality is that we are applying these sanctions against Russia, but Russia is almost certain in the end to achieve some degree of military success. A new reality will dawn, probably with a puppet Government in Ukraine, and the whole issue will start fading from international debate, from the media and so on. What are the Government’s plans for the medium term and, if necessary, the longer-term future in sustaining these sanctions and this level of pressure on the Russian regime?

In reality, there will be quite rapidly a tendency to put pressure on the Government to allow people to return to a new normality: to allow Russian companies to have access to the City of London again and to ease sanctions causing financial losses to lawyers, accountants and firms here. Is the Minister able to assure me that, as far as the British Government are concerned, we intend to retain this degree of sanctions until some satisfactory solution to the political problem is achieved, with a genuine agreement with a respectable Ukrainian Government who have proper regard to international law and national sovereignty? Will the British Government remain one of the more robust in the western lands? There will be considerable pressure to stop doing so much once we have, as it were, done our best to protect the Ukrainian regime during the conflict.

The sooner we start addressing that problem, the sooner we will start facing up to realistic problems that we must plan for. The Russians will undoubtedly, for example, try to ensure that the sanctions do quite a bit of damage to western economies, and will start trying to use their influence on the oil and energy markets to demonstrate that they can cause us some continuing loss unless we begin to lose interest—shall we say?—in the crisis that has so shocked the world. Are we determined to be one of those western countries that will seek to maintain the fullest force of sanctions we can unless and until a satisfactory solution is reached with the Russian regime?

[Lord Fox (LD)]

My Lords, it is a pleasure to follow the noble and learned Lord, who has just given the Government some wise advice which I hope the Minister will carry back to his colleagues.

We welcome the sanctions and look forward to the arrival of the economic crime Bill when it comes from the Commons the week after next. That has flushed out quite a lot of advice and some very strong comments from people who have been looking at the area of economic crime and kleptocracy in this country. One of the threads coming through, which goes back to the issue of what we can do now to stem that flight of capital, is that we are not fully using the anti-money laundering laws that we already have on statute in order to do that now. Will the Minister agree that more can be done with current legislation, which can be used to help stem the flow of money stolen from the people of Russia? Does he undertake to redouble efforts with all the bodies that have the power to use these anti-money laundering laws to get on and do it?