Andrey Lugovoy and Dmitri Kovtun Freezing Order 2018

Baroness Kramer Excerpts

Tuesday 20th February 2018 Lords Chamber

[Lord Robathan (Con)]

My Lords, I commend the Government for taking this action. I also commend my right honourable friend the Security Minister in the other place for his comments about the assets of many people that have been brought here. They are probably illegally obtained moneys and are now held by oligarchs in this country who are laundering them through the banks here and buying up a great deal of London real estate.

I have been put on a stop list and cannot go to Russia. I would rather like to go to St Petersburg, never having been. I have probably been put on the stop list because I said something slightly disobliging about President Putin a few years ago. I urge the Government not just to pursue this matter but to be really fierce with the Russian Government, as I believe our Foreign Secretary has been. If the Russian Government get away with it, they will continue to get away with it and life will get worse, not better.

[Baroness Kramer (LD)]

My Lords, I support the continuation of the freeze on the assets of Andrey Lugovoy and Dmitri Kovtun, but they had years in which to reorder their finances before the first asset freeze came about in 2016. I point out that there is a lesson there: in the future the Government need to act quickly. The delay in the public inquiry and in acting to freeze the assets was, frankly, shamefully long. Beyond this just being a heinous crime, the murder was also, as my colleague in the other place, Tom Brake MP, said at the time of the public inquiry, an assault on our sovereignty. Those are two fundamental issues that should have urged us to rapid action.

I have a couple of questions for the Minister. Having reread the order, I am unclear about whether it applies to cryptocurrencies. If it does, I wonder whether the Minister can guide me to the relevant article or paragraph in the order and explain to me how on earth action against cryptocurrencies will be enforced. Because those currencies are beginning to play a major role in many areas of asset purchases and payments, it is important that we make sure that the issue is covered, and I would appreciate the Minister’s comments on that.

I also want to ask the Minister about the situation in the British Overseas Territories. The Government have firmly refused to require the overseas territories to make their registers of beneficial ownership open to public scrutiny. They have argued that the facility for UK authorities to inquire whether beneficial ownership is associated with individuals such as these two is sufficient for them to be able to enforce. How often have the relevant British enforcement authorities investigated this and are either of these men using the overseas territories and shell companies to continue to access financial services and markets? If the Minister does not have an answer now, could he write to me on that issue?