Ukraine

David Morris Excerpts

Tuesday 10th February 2015 Commons Chamber

[Mr Hammond]

We have excellent relationships with our Latvian counterparts. I recently visited Latvia because it holds the current presidency. Various UK Ministers will be in Riga over the course of the next weeks and months. I had a discussion in Brussels yesterday with the Latvian Foreign Minister. As one of the Baltic states, Latvia is quite forward leaning on these issues, but in its role as EU president it takes a more measured position, stewarding the EU. We have good relations; we well understand the Latvian position; we greatly appreciate the insight that its knowledge of its Russian neighbour allows us.

[David Morris (Morecambe and Lunesdale) (Con)]

It seems to me that the current sanctions are having a limited effect in halting the incursions into Ukraine. What will happen if these current sanctions fail? Further sanctions are implied, so what would those sanctions look like?

[Mr Hammond]

We have two levels of sanctions in place at the moment. We have sanctions targeted on individuals and companies—named individuals and companies—that include asset freezes, travel bans and so forth. Then we have the tier 3 sanctions, which are sectoral. These impose prohibitions on the export of goods and on trade with certain sectors of the Russian economy. In particular, there is an exclusion of Russian institutions, public and private, from the capital markets of the free world. We could clearly extend both lists if we chose to do so. We have to make a judgment about the balance of economic harm. There are costs to us as well as costs to Russia, so we need to target our sanctions carefully to make sure that the balance of harm is to the disadvantage of the Russians.