Sanctions

Angela Eagle Excerpts

Tuesday 1st March 2022 Commons Chamber

[Michael Ellis]

Let me make a little progress and then I will give way. The solidarity of NATO is resolute, which is why the UK and our NATO allies have been moving troops to our NATO allied states. We will continue to support the legitimate Government of Ukraine and the people of Ukraine in their self-defence against this attack by Vladimir Putin. Let me reinforce this point: we are going to use every lever under our control to that end.

[Dame Angela Eagle (Wallasey) (Lab)]

I suppose the frustration is that we have been told for a long time that economic crime and kleptocracy and the proceeds of economic crime are going to be clamped down on, yet very little that is effective has happened. Now we are hearing something similar from the Minister. What is he doing to beef up enforcement to ensure that these sanctions are actually going to bite? We can have the best sanctions in the universe if we are not enforcing them; they need to be enforced, and fast.

[Michael Ellis]

These powers will have a maximum penalty of up to 10 years’ imprisonment, so that is a “bite” if they are breached.

--- Later in debate ---

[Stephen Doughty]

I am sure that the Minister will say that we are not naming individuals to give them advance warning, but the right hon. Member for East Antrim (Sammy Wilson) is absolutely right to bring up the fear of asset flight, as several hon. Members have done. We have already heard rumours today that a number of people are trying to dispose of assets and move money. I hope that the Government will name and shame the law firms and accountants who are facilitating that; they are the same enablers who have facilitated the illicit finance network and propped up the Putin regime for far too long in this country. Quite frankly, those law and accountancy firms and others involved should be ashamed of themselves.

[Dame Angela Eagle]

Does my hon. Friend share my worry and frustration that there has been such a big gap between the Government’s rhetoric about economic crime, sanctions and kleptocracy, and what they actually do? Before we can fully support the sanctions suggested, we need reassurance that there is now no gap and that enforcement will be effective. The sanctions have to be effective, or they might as well not exist.

[Stephen Doughty]

I completely agree about the need for effectiveness. A point has been made today about the slow pace of the designation of some individuals and entities. The Government have rightly talked about moving in lockstep with our allies, particularly in the EU, yet we still seem to be off pace in naming individuals—we seem to be moving more slowly. Some of the individuals that we have mentioned have already been sanctioned by the US and others for years or do not have significant assets in the UK. We need to ensure that our measures are meaningful, immediate, effective, deep and robust, and that individuals are not now sweeping their money and assets out of the UK.