Russia: Sanctions

Lord Robathan Excerpts

Monday 11th September 2023 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, the right reverend Prelate talked about the impact of sanctions. I can share with him that sanctions are having a direct impact. On revenues alone, they have left Russia’s budget in deficit, rather than the surplus that the Russian Government themselves predicted for 2022. Russia has suffered an annual deficit of £47 billion, the second highest of the post-Soviet era. Russia’s energy revenues fell 47% in the first half of this year. At the same time, global oil prices are lower. Less immediately visible, but more importantly in the long-term, more than 1,000 foreign businesses have left Russia, along with thousands of high-skilled workers. More continues to be done, as we co-ordinate and work with other countries. Particularly notable recently is that Armenia, Turkey and Kazakhstan have taken action on the issue of supply chains, which the right reverend Prelate raised. That kind of co-ordination is important if we are going to make these sanctions work across the piece.

[Lord Robathan (Con)]

My Lords—

[Lord Sahota (Lab)]

My Lords—

[Baroness Williams of Trafford (Con)]

My Lords, we will let my noble friend ask his question and then we will go over to the noble Lord, Lord Sahota.

[Lord Robathan (Con)]

My Lords, on targeted sanctions, the oligarchs who make up the inner circle around Putin, and the huge number of people who have property here, have almost invariably made their money by nefarious means—they must have done, because 30 years ago there was no private capital in Russia. Could my noble friend the Minister give us an update on how many oligarchs are having their property—and whatever else—put into suspension so that we can confiscate and use it to rebuild Ukraine?

[Lord Ahmad of Wimbledon (Con)]

I agree with my noble friend that we all want—I think I speak for the whole House—to get Russia to pay for its war on Ukraine. At the time of the invasion, the UK sanctioned 129 oligarchs who have a combined net worth of around £145 billion. As I said earlier, we have frozen £18 billion-worth of Russian assets under the regime. The UK has also set up specialist agencies in the NCA and, as I said earlier, we are working with key partners. Legal hurdles need to be addressed, but we are not doing that alone—other partner countries are also looking to allow those assets, now that they are frozen, to be moved across. Ultimately, when the war ends, we can use the money from those assets in the reconstruction of Ukraine.