Sanctions

James MacCleary Excerpts

Wednesday 14th May 2025 Commons Chamber

[James MacCleary (Lewes) (LD)]

I congratulate the Minister and the Government on their work to date on sanctioning Russia. The UK must continue to stand shoulder to shoulder with our allies and the brave Ukrainian people in resisting Putin’s aggression. The support for Ukraine across this House sends a really strong message to the Kremlin, so we welcome this latest statutory instrument, which rightly tightens the screw on Russia’s ability to wage its illegal war.

These amendments expand our sanctions regime in three important ways. First, by extending export bans on a wide range of products—chemicals, electronics, plastics, metals and machinery—we are further disrupting the industrial base that fuels Putin’s war machine. Secondly, by banning the transfer of associated software and technical knowledge, including cloud-based solutions, we will prevent the back-door flow of intellectual capital into the Kremlin’s hands. Thirdly, by introducing import bans on Russian synthetic diamonds and helium products, even when processed in third countries, we will cut off future revenue streams to help fund this war. These measures respond to the real-world attempts by Russia to sidestep sanctions by using complex supply chains and third-country networks. They align the UK with our allies—the EU, the United States and the G7—making our collective response far more powerful than going it alone.

However, while I support these measures, I hope that Ministers will consider going further. If the Government are serious about holding Putin to account, sanctions must be not only enforced but escalated. The Liberal Democrats have been saying this for months: the UK should begin the seizure, not just the freezing, of Russian state assets.

[Lisa Smart (Hazel Grove) (LD)]

I am grateful to my hon. Friend for what he is laying out, and I absolutely agree with him that the support for these measures across this House is really powerful. I was most recently in Kyiv two weeks ago, and the look on the faces of the people subjected to war crimes by the Russian army will stay with me for a very long time. That underlined to me the importance of UK efforts to support them, and I completely agree with his point about moving from freezing to seizing Russian assets. The Minister today and the Foreign Secretary earlier this week talked about working on a multilateral basis. Does my hon. Friend agree that if such an agreement cannot be found, we should consider moving on a unilateral basis in a leadership role for the United Kingdom?

[James MacCleary]

I absolutely agree with my hon. Friend. There is an estimated £22 billion in frozen assets from Russian central bank reserves held and locked up in the UK at the moment. That money could and should be used to help rebuild Ukraine, provide humanitarian assistance and purchase the matériel that the Ukrainians need to defend themselves, and the UK should certainly be taking a leadership role in seizing those assets as soon as we can. The United States is already moving in that direction, as are EU member states. The United Kingdom, as we have said, should be leading, not lagging behind.

We must also close the loopholes that have allowed Russian oligarchs to continue laundering their dirty money in London. That means properly resourcing the National Crime Agency, strengthening the economic crime legislation, and demanding the use of Magnitsky sanctions not just for individuals but for their family members when wealth is transferred in an attempt to dodge accountability.

As a member of the UK’s parliamentary delegation to the Council of Europe, I strongly support the register that the Council of Europe has established, on which the UK is taking a leading role, to record the damage that Russia has done to Ukraine. I know that the Government are backing that work, but I hope that Ministers will promote the register, which does not have a very high profile at the moment, to ensure that victims’ claims are properly documented and Russia is held meaningfully to account for its actions.

Let us not forget that Putin’s ambitions do not end with Ukraine. He is actively working to destabilise other sovereign states, including Georgia, Moldova, Romania, Bosnia and Herzegovina, and others in a wider attempt to erode European stability and democratic resilience.

Let me be clear: the Liberal Democrats believe in the rule of law, the sovereignty of nations and the right of people to choose peace over tyranny, and Putin’s war is a grotesque assault on all those principles. This legislation is a necessary step, but it must be the beginning, not the end, of our efforts to hold Putin and the Russian state to account. We support the motion, but we will keep pushing this Government to be bolder, faster and more determined in their support for Ukraine and its defence of the values we all hold dear.

--- Later in debate ---

[Stephen Doughty]

Thank you, Madam Deputy Speaker. I had forgotten about that particular procedural aspect of talking past 7 o’clock. Thank you for giving me the eye to remind me that that was coming; I appreciate it.

As I was saying, on third-country circumvention, the shadow Minister asked me what measures we are taking. I can assure her and the House that this has been an extremely high priority for me and the Foreign Secretary. I regularly raise issues and we have a number of countries that we are particularly focused on. We have the common high priority list of items that are of most value to Russia’s military industrial complex. I assure her that we have also taken robust action against entities and individuals who have been involved in those matters. We have set out a number of those measures in past sanctions packages. I raise them on an almost weekly basis to try to bear down on that.

The right hon. Lady asked about the proceeds from Chelsea football club. We are determined for the proceeds to reach humanitarian causes in Ukraine as soon as possible, and we are doing everything we can to bring that about quickly. The shadow Minister will understand that this is a complex legal issue, but we are working with our international partners. We have engaged with Abramovich’s team and we are exploring all options to ensure that the proceeds reach vulnerable people in Ukraine who are most in need.

The right hon. Lady asked about the tranches of the ERA funding. I can assure her that two of the tranches, over two thirds of that funding, is already out the door. I spoke to Ukrainian Ministers about that and its availability, and they confirmed that they had access to it. She asked a detailed question about why it is being done in three tranches. I have just written to the shadow Foreign Secretary to set that out in more detail. We can make sure that she gets a copy of that letter. There are technical and other reasons for that, but we are ensuring that Ukraine gets what it needs right now, and is able to plan and deliver in its own defence.

The right hon. Lady asked, as others did—it was raised by the Liberal Democrat spokesperson, the hon. Member for Lewes (James MacCleary)—about Russian sovereign assets. I repeat what I said to my friend the hon. Member for Strangford (Jim Shannon), which is that we are working at pace on that with others. We are exploring all lawful options to ensure that Russia pays. We have been leading; we have not been lagging. Indeed, the ERA loan is very much a testament to our leadership on this issue and I can assure the Liberal Democrat spokesperson that we are engaging very closely with international partners on that, as the Foreign Secretary said yesterday.

The right hon. Member for Aldridge-Brownhills (Wendy Morton) rightly talked about the importance of continued and absolute support for Ukraine. I can assure her that that is the case, particularly at this time. The leadership shown by President Zelensky, President Trump and others in seeking an unconditional ceasefire and a just and lasting peace is crucial. We will continue to work with them on that and we will continue to support Ukraine in its endeavours. She rightly drew attention to the activities of others—North Korea, Iran and others—in supporting Russia’s barbarous actions. We have taken action on many of those things.

The hon. Member for Lewes raised a couple of other points. On enforcement, I hope to have more news imminently and to be able to update the House on those matters. I promised that we would undertake an important review on the enforcement of sanctions across Government. It has been a crucial piece of work, which was rightly raised by many people. I hope we will have more to say on that very soon. I would also point him to the illicit finance and kleptocracy campaign led by the Foreign Secretary and me. We are taking a series of measures, working with Departments across Government, to ensure that London, our country and our wider British family are not used to support kleptocrats and those contrary to our national interests, or indeed Ukraine’s interests in this specific case.

The hon. Gentleman raised the important role of the Council of Europe. I completely agree with him. My ministerial colleague the noble Lord Collins is currently attending a meeting of the Council of Europe’s Committee of Ministers. We have taken important work there—not only on the register of loss and damage, but on crucial issues such as the special tribunal against Russian aggression, as the Foreign Secretary spoke about yesterday.

There were, rightly, a number of questions about the impact that these sanctions are having. The impact is substantial: the Russian Government have been forced to take their first major tax hike in more than 20 years, and, following a loss of $7.6 billion in 2023—its first loss in 25 years—Gazprom, one of Putin’s main sources of incomes, lost $12.9 billion in 2024. Russian oil delivery now takes significantly longer due to sanctions, showing how they and the work on the shadow fleet have disrupted and impeded Russian trade.

[James MacCleary]

The Minister is speaking of the ways in which we are disrupting the Russian regime, but could he say a few words about those who are resisting the regime within Russia? We often speak about pressure being put on Russia to stop Putin’s aggression, but we sometimes forget about those within Russia who are putting themselves at huge risk to resist the actions of the Russian President. Will the Minister mention how we look to support those who bravely stand up and resist the regime within Russia?

[Stephen Doughty]

The hon. Gentleman raises an important point. Of course, our opposition here is to Putin’s regime and what it is doing in Ukraine. We do not have a quarrel with the Russian people or with Russia; our quarrel is with Putin’s regime, what it is doing and what he has brought his country to. It was hugely humbling to meet a number of leading figures in the past few weeks, including Vladimir Kara-Murza, who was brutally imprisoned by Putin’s regime, and Yulia Navalnaya, whose husband, Alexei Navalny, died in prison. We continue to call for the release of Russian political prisoners; their imprisonment is absolutely abhorrent.

These measures are hugely important and are having an impact, and I welcome the unified support across the House for them. I commend these regulations to the House.

Question put and agreed to.

Speaker’s Committee for the Independent Parliamentary Standards Authority

Resolved,

That, in pursuance of paragraph 2A of Schedule 3 to the Parliamentary Standards Act 2009, Mary Curnock Cook CBE be appointed as a lay member of the Speaker’s Committee for the Independent Parliamentary Standards Authority for a period of five years from 2 June 2025 to 31 May 2030.—(Lucy Powell.)