Sanctions: Russia

Caroline Nokes Excerpts

Monday 9th September 2024 Commons Chamber

[Gordon McKee (Glasgow South) (Lab)]

I welcome the Minister’s statement, and welcome him to his position in the House. He brings a huge amount of experience in this field, and I know he will do a fantastic job.

Tightening economic sanctions on Russia is one of the most fundamental ways that we can help to support the people of Ukraine in their fight for democracy, and that is what I want to speak about briefly. Throughout history, conflict has been a battle of individual courage and morale—something that the people of Ukraine have demonstrated time and again over the past two years since the Russian invasion—but it has always also been a battle of technology. From the Roman legions through to the Manhattan project, the side with the better, more advanced technology often prevails, which is why it is important that our sanctions restrict Russia’s ability not just to resource its war, but to fight it in the first place.

As the saying goes, chips are the new oil. Russian semiconductor technology remains around 15 years behind that of NATO allies, but by avoiding sanctions, it is able to overcome that problem. More than two years on from its illegal invasion, Russia remains able to acquire the microchips necessary for advanced missiles and drones that are used against innocent civilians in Ukraine. Many will remember—I certainly do—that, when our sanctions were first introduced, there was talk that Russia’s economy would come to a standstill, that within months, planes would not be able to take off and Russia’s military would be unable to function. Clearly, that has not happened. We must therefore ask ourselves why and what more we can do. Today’s move to ban shadow tankers and sanction those who operate them is the right decision. It will impair Russia’s ability to finance its war by selling and transporting oil, but there is still more to be done, much of which will require ingenuity and the kind of careful diplomacy that I know the Minister is more than capable of.

There are two broad strands to the ways in which Russia is obtaining this technology. The first, and perhaps the most difficult to resolve, is by repurposing common technologies, the kinds of dual-use microchips that the hon. Member for Rutland and Stamford (Alicia Kearns) referred to. They are in washing machines or microwaves, but they are also appearing in Russian attack weaponry. For example, the Orlan-10 drone—used by Russia to target Ukrainian troops—contains some western-made components that we would normally find in weather stations, or even in dishwashers. When the Minister sums up, will he reflect on what work the Government are doing to make sure those dual-use microchips are unable to be used in that way?

The other way that Putin’s military has continued to supply itself is by avoiding sanctions via third parties. The evidence is widespread: since the invasion of Ukraine, exports from the EU to some of the countries bordering Russia have increased by around 50%, roughly equivalent to three quarters of the drop in European exports to Russia since the war began. It does not take a genius to work out what is going on, especially given that the biggest growth in exports is in heavily restricted product groups such as chemicals, electronics and machinery. I know that the Minister will be keenly aware of this problem, so could he inform the House of the diplomatic work that the Foreign Office is undertaking to ensure we combat it?

I fully support the Government’s moves to tighten sanctions. Russia must never be allowed to prevail in Ukraine, and we must constrain its resources to fight this illegal war. The people of Ukraine have shown incredible bravery, courage and skill. The very least that we in this place can do is honour our commitment to them. I know the Minister will do everything in his power to help achieve that.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Lib Dem spokesperson.

[Richard Foord (Honiton and Sidmouth) (LD)]

Given that this change to the law seeks to tighten economic and trade restrictions on Russia, the Liberal Democrats support this statutory instrument, which has been carried on from the work of the previous Government. However, if we step back from the detail of what this SI seeks to do, it is worth looking at some of the context in which it has been tabled. Proceeds from oil and gas sales within Russia’s federal budget rose by 41% in the first half of 2024. That is partly accounted for by the fact that oil prices have gone up and the rouble has become weaker, but we cannot get away from the fact that Russia is profiting from its oil and gas sales in a way that was not the case a year ago, and is getting far greater proceeds from the sale of its oil and gas.

That matters, of course, because Russia is using that money for its grossly illegal aggression in Ukraine. It is thought that those oil and gas sales account for between a third and a half of the total Russian federal budget, so we have to ask how that is happening. Yes, it is partly happening via Russian ships that are part of this so-called shadow fleet, and it is welcome that the SI will prohibit those ships from entering a port in the UK. It is welcome that those ships can be detained in the UK and will be refused permission to appear on the UK’s ship register, but the hon. Member for Strangford (Jim Shannon) is exactly right: we also have to think about what other countries than the UK are doing. According to the Financial Times, the oil trade between India and Russia almost doubled to $65 billion in 2023. India imported very little crude oil before the invasion of Ukraine; now it is the No. 2 importer of Russian oil, after China. It is alleged that India has been refining Russian crude and re-exporting it to European nations that are otherwise seen as subject to, and complying with, our sanctions regime.

It was also interesting to hear from the hon. Member for Glasgow South (Gordon McKee) about the use of dual-use technology. It is true that Russia is seeking to become increasingly self-sufficient, while it also looks to China and India to import technology in the fields of artificial intelligence, space technology and energy technology. Earlier this year, we saw the former Russian Deputy Prime Minister Andrey Belousov, previously Minister for the Economy, become the principal Minister for Defence. We now need to move to the next stage: when we think about dual-use goods, we need to think about how to make sure we can throttle the Russian economy so that it is not importing goods that can be used for aggression in Ukraine.

[Madam Deputy Speaker (Caroline Nokes)]

I call Josh Simons to make his maiden speech.

[Josh Simons (Makerfield) (Lab)]

Thank you, Madam Deputy Speaker. I know that tradition dictates that these speeches pay homage to our honourable predecessors, but the history of maiden speeches delivered by Members for Makerfield is somewhat chequered. My predecessor, Yvonne Fovargue, had to face down an unwelcome opponent—an unusually persistent wasp. Just as she stood up, after buzzing around her face, it struck, leaving her to struggle through the next few minutes while her face gradually swelled up.

Her predecessor, Ian McCartney, faced an even more formidable opponent: Michael Fabricant. I am told that, for decades, the parliamentary record of that encounter has stood uncorrected. As Mr McCartney began, Mr Fabricant put his feet up on the Bench. Betty Boothroyd was sat in your chair, Madam Deputy Speaker. Mr Fabricant interrupted with a point of order—not the done thing during maiden speeches, I am told. “Madam Speaker”, he said, “can you ask the man to speak in English?”, mocking Mr McCartney’s thick Scottish accent. Mr McCartney retorted, “If he doesn’t mention my accent, I won’t mention his wig.” The record does not then note Mr Fabricant’s response, “Touché, touché”, or Mr McCartney’s victorious retort, “Toupee, toupee.” Anyway, so far today there have been no wasps, and—a point that may perhaps unite this House in gratitude—no Michael Fabricant. While I do not wish to emulate those misfortunes, I hope to continue those Members’ good work in delivering for the people of Makerfield.

Many in this Chamber may not know that Makerfield is not really a place: it is a suffix attached to a collection of towns, given the name of an ancient Lancastrian forest called Macerfield that used to stretch unbroken from Wigan to Warrington. The towns I represent include Hindley Green and Hindley, Platt Bridge and Abram, Ashton and Bryn, Winstanley and Worsley Mesnes, and Orrell and Pickley Green. The history of those towns is the history of our nation. Many dug pit mines, producing the coal that powered our industrial revolution. While men dug the coal, women sorted it—pit brow lasses, as they are known. Mine workers organised into unions and, since 1906, elected Labour MPs to represent them. Industrial decline brought great destruction to many of these towns—places such as Abram, Bryn, Bickershaw and Hindley—and they will never forget the callousness with which they were treated in those years. That is one reason why I support delivering justice to mineworkers on the mineworkers’ pension scheme. Coal made this nation wealthy, and now we must ensure that those workers live with dignity in old age.

Backed by a Labour Government, Ian McCartney delivered the minimum wage, new health hubs in Platt Bridge and Worsley Mesnes, and investment in Abram and Winstanley. Then under the Tories, 14 years of austerity deepened the wounds of industrial decline, hollowing out public services and degrading public spaces, while wealth accumulated in London and the south-east. My predecessor, Yvonne Fovargue, worked hard to protect constituents, continuing a tradition of working closely with the fantastic Wigan council on its groundbreaking Wigan deal. She delivered a new health centre in Ashton and was a leading voice in combating debt, loan sharks and those who prey on the most financially vulnerable.

Through their ups and downs—their history is the history of this country—the towns I represent have developed one simple superpower: a community spirit that should be the envy of this land. They have pride in place, and care for friends, family and neighbours. Today, this spirit manifests in some of the wonderful community organisations I have had the privilege of getting to know. In Orrell, there is Tony, Julie, volunteers at Brighter Better Orrell, the Friends of Orrell Station, Greenslate community farm and Greenslate water meadows. In Worsley Mesnes and Winstanley, there is Joe at St Judes rugby club, Winstanley Warriors football club, and the Clifton Street community centre. In Ashton and Bryn, there is the Brian Boru club and Garswood Hall Bowling, Ashton Town FC and Ashton Athletic FC, which is currently rebuilding after a mindless arson attack. In Abram and Platt Bridge, there is David’s fantastic Wigan & Leigh Community Charity and Wigan Cosmos FC. In Hindley, there is Eric at the Hindley community allotment, the Friends of Hindley Station and the friends of Borsdane wood; and in Hindley Green, there is the Brunswick bowling club, the St John’s church and Bethel community centre, and the Hindley Green Residents Association.

What is the future for these towns and for our country? That is the question that we Labour Members must now answer. The task is immense. People I represent have lost trust in politics and in politicians. They believe that the work we do here makes little difference to them. They feel that we lecture, we speak, and we let economists, lawyers or bankers tell us the “right” answers, but that we do not listen, or respect or represent them. That is why the weight of responsibility on this Government, on me as my constituents’ representative and on all of us across this House could not be greater. Together, we must deliver for decent, fair-minded, hard-working people who love their community and their country, especially those in the former industrial heartlands of our great nation, which I am so proud to represent. We cannot and will not let these people down.

In this House, I hope to use my career to contribute on this question of the future. I spent years working on technology, data and machine learning. Too often, we talk about technology as an inexorable force, as if it bends society to its will, but it has no will. Technology is a tool. We build it, we design it and we use it in our world in ways that we choose. Now more than ever, we must have the interests of working people in mind as we harness the great potential of technology. I look forward to working with colleagues across this House who share those interests.

However, my family is what brings me more pride than anything. My parents divorced at a young age, so I grew up shifting between homes, towns and religions. I learned to see the best in people and in ways of living that could not be more different. Now I am lucky enough to see the world through the eyes of my children. I remember friends asking me before our first child was born, “How do you feel about bringing a child into this grim world?”, but to me that has it all wrong. Children are a bridge to the future. They inject hope for what our communities, our country, and we as individuals can be. That is why childcare will be a key focus of mine. We make having children too hard, too exhausting and too expensive in this country. Radically reforming childcare may be one of the most effective ways to deliver change that working people can feel, as well as boosting our workforce, and that is why I will campaign hard for that reform over the coming months and years.

Let me end by returning to something that my predecessor Mr McCartney said about the history and the future of the towns we represent. Democracy, he said, is not solely, or even primarily, about this place, or about us. It is about the efforts and endeavours of ordinary people. It endures because people have their country and their desire for freedom and fairness in their hearts. That is a profound lesson—a lesson that bears on this age even more than on his, and one that we must hold close through the challenges ahead, for we live in an age of insecurity.

As the organisation I was proud to lead, Labour Together, has argued, we must once again focus on strength, security and working with allies to navigate the choppy waters ahead. That is what we are here debating this afternoon, which is why I urge this House to support tightened sanctions on Russia. We must navigate the challenges of this age with a constant focus on working people, who are the backbone of this country, because unless working people like those I am so proud to represent feel change, and unless we in this Chamber demonstrate humility and honesty, and act with integrity and with respect, they have no reason to believe in democracy. That is the kind of representative for the people of Makerfield that I hope to be.

[Madam Deputy Speaker (Caroline Nokes)]

I call the SNP spokesperson.

[Stephen Gethins (Arbroath and Broughty Ferry) (SNP)]

First, I congratulate the new hon. Member for Makerfield (Josh Simons) on his extremely well delivered maiden speech. I am sure that he is somebody whom we will not be able to ignore over the next few years. Inevitably, given his remarks, he has somebody with a Scottish accent following his maiden speech. I hope that everybody in the Chamber will be able to follow mine, unlike Michael Fabricant in the past.

I also think it is important to speak today, and I join colleagues in backing the Government’s move on sanctions. The cross-party support that the Government have on this issue is exceptionally important. We could be slightly more robust on this issue, and I have a number of very specific questions for the Minister. I know that he will not be able to answer them all, but I would like to put them on record for him to answer in due course.

First, I was very pleased to hear the Minister talk about European security. We are of course stronger in dealing with Russian aggression in Ukraine when we do so in commonality with our partners in Europe. I was pleased to hear the Foreign Secretary talk about the importance of common European foreign and security policy. However, that security also applies to issues such as energy, and when it comes to energy security, being outside the single market makes us less secure. I would like to hear from the Minister about the areas in which he feels he can deepen our security by working with our European partners—on sanctions, but also more broadly.

Secondly, on tightening up financial regulations, the Minister will be aware of the issue of shell companies. The former Member for Kirkcaldy and Cowdenbeath, Roger Mullin, frequently raised the really important issue of Scottish limited partnerships. I know that this is not something that the Minister can answer immediately, but can he look at financial regulations and the challenges around dirty money? All too often, as we know—this has been picked up on by Members from across this Chamber—that money has found its way into the UK economy. I would be grateful if he could look at that issue, although I acknowledge that putting him on the spot right now may be a little unfair.

I want to pick up on the recommendations in the report by the Intelligence and Security Committee. Yes, I know we are talking about sanctions, but there is the broader issue of polarisation and disinformation in our society. I pay tribute to the work of my predecessor, Stewart Hosie MP. He worked tirelessly on the Intelligence and Security Committee, as did colleagues from across the House, on that issue. I have not yet had the opportunity to pay tribute to him in the House for his role in raising these issues in Parliament, but also for being an exceptionally diligent, hard-working and popular local MP.

I want to pick up on points made by the hon. Member for Rutland and Stamford (Alicia Kearns). First, I pay tribute to colleagues in the Foreign, Commonwealth and Development Office, who have been working on this issue exceptionally hard. I also pay tribute to the intelligence services for the work they have done, often in very difficult circumstances. It would be remiss of us not to touch on the exceptional work done by the international community of non-governmental organisations, many of them based in the United Kingdom, which have done incredibly brave work in the field on this issue. Some of the work NGOs have done has found its way into policy—for others, that is not so much the case—but the international NGO community has been exceptionally good over the years, and often ahead of the Government of the day on some of these issues.

The hon. Member for Rutland and Stamford mentioned the kidnapping of children, and I wholly endorse her remarks. The hon. Member for Glasgow South (Gordon McKee) was right to pick up on technology and its secondary role, and I endorse his remarks. Finally on sanctions, I ask the Minister to look across the piece at the system of controls on arms exports to secondary countries. I hope—I will write to the Foreign Secretary about this—that we will ensure that we do not catch countries such as Ukraine in the measures, and impede their ability to defend their territorial integrity after Russia’s aggression. I thank the Minister for his comments. He will have our support.

[Madam Deputy Speaker (Caroline Nokes)]

I call Tim Roca to make his maiden speech.

[Tim Roca (Macclesfield) (Lab)]

I congratulate my hon. Friend the Member for Makerfield (Josh Simons) on his fantastic maiden speech. There is already a little bit of confusion between Macclesfield and Makerfield, and it is good that we can continue that by giving our maiden speeches on the same day.

It is the privilege of my life to be elected to represent the communities of Macclesfield, and I start by placing on record my thanks to the House staff for the warm welcome and support that they have given new Members over the last few weeks. The Table Office, the Speaker’s Office, the Doorkeepers and our catering and security colleagues have all been phenomenal; thank you so much.

I understand that just by speaking I have already outdone one of my predecessors, as those in the Library tell me that they are yet to find any evidence that a century ago William Brocklehurst said anything at all in the 12 years in which he represented Macclesfield. On the subject of predecessors, I wish sincerely to pay tribute to my immediate predecessor David Rutley, particularly for his public service on behalf of Macclesfield and our country. People of all political persuasions will tell you that he is a man of courtesy and kindness, and that certainly tallies with my experience.

After the momentous general election that we had earlier in the summer, lots of bright new Members are frenetically trying to make a name for themselves, so I need something to help me stand out from the crowd of new MPs. The House Library thinks it has found it: I may well be the first Labour Member of Parliament to be called Tim. As I grew up in the 1990s, when Harry Enfield was on television, being called Tim was a bit of a cross to bear, so it is good to see that it has finally paid off. If being the first Tim is not enough, I will make do with being the first ever Labour Member of Parliament for Macclesfield.

Seventy-five years ago, my grandad crashed his car in Macclesfield, and while hospitalised, he fell in love with a young Irish nurse, my grandma Josephine, and my family’s story in Macclesfield began. I grew up in the constituency, and I am proud to call it home. From the Cheshire plain to the rolling hills of the Peak district, it is a beautiful part of our country. Indeed, nearly a third of the constituency lies within the Peak district national park. The town itself was famously home to a thriving silk industry, with 71 silk mills operating at one time, and I am proud to be wearing a Macclesfield silk tie today.

Macclesfield and its towns and villages—Disley, Poynton, Bollington, Prestbury and more—have made their contribution to our country with athletes, artists, scientists and writers of renown. Although my hon. Friend the Member for Salford (Rebecca Long Bailey) can try to claim the band Joy Division, the mural of Macclesfield born and bred Ian Curtis dominates our town, a reminder not only of his talent, but of the very real struggle that many people face with mental health. Macclesfield also hosts a sprawling AstraZeneca campus that employs more than 5,000 people and is crucial not just to my constituency, but to the economy of our country.

At the election, it was a privilege to campaign and, importantly, listen to people’s concerns, aspirations and fears, Many spoke of the climate emergency and the need for greater action. Others insisted on the need for electoral reform—a view that I share. Universally, they worried about public services and the cost of living crisis, with the backdrop being widening inequality on a scale that is Edwardian, unprecedented, and in my view, immoral.

There is no doubt that we live in interesting times. During the last Parliament, colleagues had to contend with a global pandemic that still casts its shadow across our country, but there is a feeling that the world is drifting towards the rapids. Every day, the brave men and women of Ukraine fight for the life of their country, and these coming weeks may prove critical in that war. In the middle east, innocent civilians bear the brunt of a tragic conflict, with a ceasefire proving frustratingly elusive, and across the world economic shocks, climate extremes, and soaring prices are combining to create a food crisis of unprecedented proportions. At home, confidence in our political system is at a record low, and according to the latest British social attitudes survey, as many as 58% of people say that they “almost never” trust politicians to tell the truth.

In medieval times, Parliaments had monikers, such as the Mad Parliament, the Lawless Parliament, and the Merciless Parliament. How will we in this place be known as we face up to our responsibilities in this Parliament? I look forward to working with Members from across the House to meet those responsibilities, to act for the public good and to contribute thoughtfully without fear or favour. We must make this a place of public service, not self-service, and about the national interest, not self-interest, so that together, to borrow a phrase, we are a standing contradiction to people who wish to believe that only those with cold hearts and twisted tongues can succeed in the world of politics.

[Madam Deputy Speaker (Caroline Nokes)]

I call Rupert Lowe to make his maiden speech.