Russia (Sanctions) (EU Exit) (Amendment) (No. 15) Regulations 2022

Debate between Lord Empey and Lord Collins of Highbury

Monday 21st November 2022 Lords Chamber

[Lord Empey (UUP)]

The noble Lord, Lord Purvis, referred to £18 billion-worth of assets that have been seized. The noble Lord will be well aware of the billions that have been frozen under a United Nations resolution with regard to Libya, which have been untouched and from which victims in this country have not received any support. Is it the case that we could be seeing a repeat of that performance and that those assets will have to be managed? Perhaps investment should be improved by people in our system and then given back again whenever the conflict ends.

[Lord Collins of Highbury (Lab)]

I am just waiting to see whether anyone else wishes to comment—every time someone says something, it provokes a point. I hope I am not going to be too provocative. I want to start by being very clear that the Opposition are at one with the Government on these sanctions. We will do whatever we can to support their speedy reduction. If there is one message from this House, it is that this country is absolutely united against Putin’s illegal war and, in particular, as we have seen, the recent indiscriminate attacks on civilian infrastructure, designed to do one thing, which is to damage the homes and the heating of families and children. So I start by saying that we are absolutely at one with the Government.

The No. 15 regulations rightly extend the prohibitions on goods critical to Russian industries. I am particularly pleased about that instrument ending the importation of liquefied natural gas—LNG—originating from Russia. Western allies, including the EU, have made real progress this year, as the noble Lord, Lord Purvis, said, in obtaining liquefied natural gas from appropriate sources, such as the United States. Prohibiting this Russian source is a good step towards energy security.

There is one thing about the speed of the introduction. The Minister highlighted an error that occurred, but another thing that struck me was that the import ban will not come in until January 2023. He explained that the error would mean that certain prohibitions will not come in until January, but why will that ban not come into force until January 2023?

I want to pick up the point made by the noble Lord, Lord Howell, because he is absolutely right. It is not just about working with allies to impose sanctions. What are we doing to support countries which need these energy supplies? What are we doing to advise them on and provide help with alternative sources? It is not easy for countries to suddenly switch if they have become reliant over the years, so it is not just a question of offering sticks. It is also about encouragement and support, so I hope the Minister can tell us a bit about that.

The ban on liquefied natural gas also prohibits loans to firms that support Russian interests, even if they are based outside Russia. To what extent are the Government already monitoring which companies are providing finance for these purposes? The Minister has said on many occasions that whatever sanctions we may introduce, there will be someone trying to circumvent them. That means enforcement is critical—the noble Lord, Lord Purvis, made this point. The United States appears to have quite strong enforcement measures. Are we examining not just how we act in concert when introducing legislation, but exactly how we can more effectively act in concert on enforcement, which will ensure that people do not easily circumvent it?

My noble friend’s question on circumvention was a good one. If this is being done so explicitly, I hope we can take more direct action on it. However, the regulations also have exceptions—I want the Minister to highlight some of these—which will allow oil products to be provided to third countries. Can he explain a little more about the circumstances where this would be permissible? In particular, we have heard about other countries’ roles in importing and then exporting. We need to be reassured that we are taking that into account.

The noble Lord, Lord Purvis, made the broader point about international co-operation and co-ordination on sanctions. In our consideration of each statutory instrument as it has come in, we have certainly raised with the Minister the fact that the United States and Canada seem able to introduce sanctions faster, or well before our own. There may be good reasons for that—it is an incremental build.

As we move into a longer period of these sanctions, I wonder whether the FCDO has done a general assessment of where and why there may be gaps, and how we can hit Russia with one big hit, rather than taking an incremental approach. It would be really good if Parliament could be given such an assessment. How are we building up allies and persuading others to join, even if they are unable to match our speed of implementation? Are they at least coming on board in some of the other areas?

In conclusion, I reiterate the Opposition’s full support for the Government’s actions here, and we look forward to further clarification.