Sanctions

Bim Afolami Excerpts

Tuesday 1st March 2022 Commons Chamber

[Bim Afolami (Hitchin and Harpenden) (Con)]

It was Lenin who said that there are some decades when nothing happens and weeks in which decades happen. It feels as if this week is one of those weeks. This war, as we know, is pernicious and wrong, and the Government are straining every sinew to ensure that it is not successful; indeed, the whole House is united on that front. These sanctions—I do not think this has been fully recognised by all quarters of the House—are the most extensive that have ever been put in place by any Government at any time. Think back to the days of apartheid South Africa. Think back to all sorts of regimes we have seen over recent decades. Never have a Government acted this extensively, indeed this swiftly. For that, the Government should be commended.

I have a couple of questions on the financial sanctions for those on the Treasury Bench. First, what is the position of individuals or institutions who may be assisting those trying to evade sanctions, either now or when these measures have come into force? For the avoidance of doubt, will the Minister clarify that it remains legal for UK entities or individuals to hold equities or debt instruments in businesses headquartered in Russia that were already held before the crisis started? It is important to get that clarification on the record.

On export sanctions, what safeguards are there? The Government are trying to prohibit the export of certain materiel to Russia that will help in the war effort against Ukraine, which we all condemn and we all deplore. What safeguards are there in the legislation for exports to third countries that are then smuggled to Russia, because that is a very obvious route that many nefarious individuals may take? Will the Minister also enlighten the House on what other types of equipment might be considered for inclusion within this export ban that are currently not included? What sorts of things are the Government also looking at?

These sanctions represent the right way forward. We are isolating Putin and we are squeezing the Russian economy in concert with our allies. It is worth noting—I agree with the words of my right hon. Friend the Prime Minister—that we are not taking military action directly. We are not doing that. The right way for a country like the United Kingdom and the world is not to try to escalate the military conflict, but to squeeze Putin, his Government and the Russian economy.

If I may, I will finish with a word about the City of London. There has been some discussion on both sides of the House and from former Chairs of the Public Accounts Committee, of which I am a very proud former member, about the City of London, and dirty money and cleaning it up. I speak as somebody—I should probably declare an interest—who was a corporate lawyer and a banker in the City of London. The City of London does many brilliant things, but I think we all recognise that it now needs to step up and help this House and the Government to show that might is not always right, and that morals and money are not always mutually exclusive.

I strongly support the imposition of these sanctions.