Sanctions

Debate between Layla Moran and Bob Seely

Tuesday 1st March 2022 Commons Chamber

[Bob Seely (Isle of Wight) (Con)]

It is a privilege to follow the right hon. Member for Barking (Dame Margaret Hodge). I will talk a little about enablers, but it might be helpful to talk a little about oligarchs as well, and I will try, just from my own experiences, having lived in Ukraine and having tried to keep abreast of what was happening in the Soviet Union when I lived there and since, to talk also about the role of oligarchs in Russian hybrid war. I will talk a little about the statutory instruments and give them some context, if that will be helpful.

I think it is pretty depressing that it has taken a major war in Europe for us to take economic crime seriously. We have been waiting on this Bill since 2018, and there is no excuse why it has not been on the statute book for 20 years, frankly. Previous Conservative Governments have failed—I am delighted that this Government are doing the right thing; I am not criticising this one—previous coalition Governments have failed and, frankly, previous Labour Governments have failed. I just do not understand how we have got ourselves into the mess we are in now.

Obviously I am going to support these regulations, the Economic Crime (Transparency and Enforcement) Bill and whatever else the Government put up, but I stress to them that this is the beginning of a cleaning up of our legal system and finance system—this is not an end, but a start. We do not know how much money has flowed through our country using offshore accounts or Companies House. Our banks were not responsible for this corrupt flow of wealth—some of the worst in history. It was the Danish, German and Swedish banks that were responsible for that, but it is UK companies that they used.

I also say to the Minister that, as well as the Economic Crime (Transparency and Enforcement) Bill, we need a foreign lobbying Bill and amendments to libel law and data protection law. We need to do more on SLAPPs—strategic lawsuits against public participation—where aggressive lawyers seek to intimidate campaigning groups, journalists and the like. We also need an espionage Bill.

We must toughen up the Solicitors Regulation Authority. I am told by whistleblowers working for the big companies that they do not do proper client checks and that “know your client” checks are non-existent for some of them. Some actually have a list of people that they specifically do not do those checks on because they know that they are inherently corrupt and inherently criminal. What on earth has happened to some of the major legal firms in this country that means that they specifically avoid “know your client” checks because they know that they will have to turn that client down if they do because those clients are corrupt, criminal or linked to organised crime? I am afraid to say that that is pretty shocking.

I note that some oligarchs are now distancing themselves from President Putin. Fridman, Deripaska and Abramovich have all come out with rather woolly statements in the last couple of days. I am sorry, but I don’t buy it.

[Layla Moran]

Does the hon. Gentleman not find that it rather sticks in the throat that Mr Abramovich has been going around saying that he is an envoy of peace and claiming that he is somehow brokering peace between Ukraine and Russia, given his former involvement in the matter?

[Bob Seely]

The hon. Lady brings me to a point about how oligarchs work. To go back to Ukraine, somebody such as Dmitry Firtash, who is now wanted by the Americans, was set up by Gazprom and Putin. He was given sweetheart deals to import vast amounts of cheap energy into Ukraine. The vast profits that he garnered from those sweetheart deals gave him a good life but, more importantly, he funnelled that money into buying up chunks of east Ukrainian industry, effectively as a front for the FSB, the former KGB. Critically, he also used it to purchase politicians and to fund the pro-Russian political parties in eastern Ukraine.

When it comes to oligarchs, therefore, it is important to understand that we are talking about an economic model within hybrid war. Of all the tools of hybrid war, if hon. Members read the Russian characteristics of war, they will see that the first characteristic of the Russian military doctrine is that there is an integrated military and non-military strategy. So they have their troops, paramilitaries, front organisations or assassins, but with that they have the politics, economics, culture, religion and even sport—sport matters very much.

When it comes to oligarchs, we are talking about not just obscenely rich people who are mates with somebody, but a structure of control and power, whether that is in eastern Ukraine or in the United Kingdom, primarily to facilitate vast money flows to tax havens or to intimidate and silence the western media into not reporting on those people. There are a series of outcomes to that, so I thank the hon. Lady for the intervention.

I return to Abramovich, Fridman and Deripaska. If they were so keen to smarten up their act—they are clearly scared of what might happen—I would like to know why, as of only a few weeks ago, they and their London lawyers were all abusing data protection Acts or libel law to target and intimidate individuals, such as Chris Steele and Catherine Belton, HarperCollins and others. At the end of last year and even this year, they have continued to intimidate a free press. They were enabled, and I make the point that it is not only the oligarchs but their millionaire servant class of enablers who enable the billionaire class of oligarchs who enable the neo-fascism that we see in Europe.