Syria (Sanctions) (EU Exit) Regulations 2019

Lord Ahmad of Wimbledon Excerpts

Thursday 9th May 2019 Lords Chamber

Moved by

[Lord Ahmad of Wimbledon]

That the Regulations laid before the House on 5 April be approved.

Special attention drawn to the instrument by the Joint Committee on Statutory Instruments, 58th Report

[The Minister of State, Foreign and Commonwealth Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I will speak also to the Chemical Weapons (Sanctions) (EU Exit) Regulations 2019, the Russia (Sanctions) (EU Exit) Regulations 2019, the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019 and the Zimbabwe (Sanctions) (EU Exit) Regulations 2019.

Noble Lords will be familiar with the Sanctions and Anti-Money Laundering Act 2018, which passed through this House last year. It provides the UK with the legislative framework to continue to meet our international obligations, to implement autonomous sanctions regimes and to update our anti-money laundering framework after we leave the European Union—although the last of these is not under consideration today.

Noble Lords will be aware of the importance of sanctions. They are a key element of our approach to our most important international priorities. They help defend our national interests, support our foreign policy and protect national security. They also demonstrate our support for the rules-based international order. The United Kingdom has been a leading contributor to the development of multilateral sanctions in recent years. We have been particularly influential in guiding the EU’s approach and that is why, when we transition the EU sanctions regimes into UK law, we intend to carry over their policy effect. I shall say more about that in a moment.

The principal interests and threats facing the UK and the other EU member states will not fundamentally change when the UK leaves the EU. The Government recognise sanctions as a multilateral foreign policy tool and intend to continue to work in close partnership with the EU and other international partners after EU exit to address those threats, including through sanctions. The SAMLA 2018 was the first major legislative step in creating an independent UK sanctions framework. However, while the Act set out the framework needed to impose our own independent sanctions, we still require statutory instruments to set out the detail of each sanctions regime within that framework.

Such statutory instruments set out the purposes of our regimes, the criteria under which the Secretary of State may designate individuals and entities, and the types of restrictive measures imposed. They do not specify which individuals or entities will be sanctioned. The Government will publish the list of those we are sanctioning under UK legislation when those prohibitions come into force. We will seek to transfer EU designations in each case, but these decisions will be subject to the legal tests in the sanctions Act. Any EU listings that do not meet the tests would not be implemented.

One important feature of the sanctions Act, which I am sure noble Lords recall, was passed in your Lordships’ House and discussed in detail during its passage: the right given to individuals to challenge their designation. Anyone designated under these instruments will be able to request that the Minister carry out an administrative review of their designation. The procedure applicable to such requests for reviews is set out in the Sanctions Review Procedure (EU Exit) Regulations, which were made in November last year and which are now in force. If, following the review, the Minister’s decision is to uphold the designation, the designated person then has the right to apply to the High Court, or, in Scotland, the Court of Session, to challenge that designation decision. The court will apply judicial review principles to determine whether the designation decision should be set aside. It will also apply the procedure set out in the amended Civil Procedure Rules for England and Wales, the Rules of the Court of Judicature for Northern Ireland, and the Rules of the Court of Session for Scotland, which allow in particular for closed material proceedings to take place in relation to such challenges.

The sanctions Act requires a review of all UK sanctions listings at least every three years. In addition to this triannual review, the UK will review all sanctions regimes, such as those being debated today, on an annual basis and present the results in a written report to Parliament. These governance arrangements provide protection for designated persons, especially when coupled with the wider safeguards in the sanctions Act. We have published reports on the purposes of each of the sanctions regimes under consideration today and the penalties contained within them alongside the statutory instrument. These reports, plus an Explanatory Memorandum for each SI, are available in the Vote Office should noble Lords wish to see them. As I have done on previous occasions, I once again thank the Secondary Legislation Scrutiny Committee and the Joint Committee on Statutory Instruments for their close and helpful scrutiny of these SIs.

Before closing my opening remarks, I draw it to your Lordships’ attention that while the majority of the substantive provisions in the regulations come into force only on exit day, the provisions enabling sanctions designation decisions to be taken were commenced so that decisions could be taken in good order in advance of exit day. Due to the extension of Article 50, the provisions that have been commenced have not had any practical effect as no designations have been made under these powers. In the case of the Russia sanctions regulations, the provisions in Regulation 1(3) to allow designation decisions to be taken were commenced on 11 April, the day after the regulations were made. The regulations were laid before Parliament at midday on 11 April. As no time was specified for when the regulations came into force on 11 April, there was a period during that day in which the regulations were in force but had not been laid.

I regret that due to an administrative oversight, we failed to follow the correct procedure to inform the Lord Speaker and the Speaker of the other place of this pre-laying commencement. This matter was addressed as soon as the error was found but I regret that the Easter break led to the Lord Speaker not being notified until eight working days after the instrument was laid. We take seriously the procedural and legal requirement to notify the Speakers, in accordance with Section 4(1) of the Statutory Instruments Act 1946. My right honourable friend the Minister of State for Europe and the Americas, Sir Alan Duncan, has already written to the Speakers of both Houses, and to the Joint Committee on Statutory Instruments and the Secondary Legislation Scrutiny Committee. A copy of his letter has been placed in the Library. Although this is an unusual situation, we have also reviewed our processes and taken steps to ensure that it does not happen again.

I will say a brief word, if I may, on the SIs in front of us. As I said earlier, these instruments seek to substantively mirror the policy effects and mutually reinforce the measures in the corresponding EU sanctions regime. Noble Lords will note that human rights are a significant focus of the sanctions regimes being debated. I know that many are keen for the UK to develop our own, stand-alone human rights sanctions regime and may therefore query why we are simply transferring existing EU sanctions regimes. I assure noble Lords, as I have done previously, that the sanctions Act does give us the necessary powers in UK law to develop our own such regime. However, the SIs we are debating were laid on the contingent basis to provide for the continuation of some existing sanctions regimes should we leave the EU without a deal. As such, our priority has necessarily been to ensure the transfer of existing EU measures by laying SIs such as these. We will give consideration to new regimes as circumstances suggest and parliamentary time allows.

I turn briefly to each of the SIs in front of us. The Syria sanctions regulations aim to deter the Syrian regime from actions, policies or activities which repress the civilian population, and to encourage a negotiated political settlement to end the conflict. They include: asset freezes and travel bans on designated persons, together with financial, sectoral and aircraft sanctions; and wide-ranging trade restrictions, including on goods and technology which may be used for internal repression and in intercepting and monitoring telecommunications, but also in respect of other goods and technology such as crude oil, jet fuel, luxury goods and items that could contribute to chemical and biological weapons.

Noble Lords will have noted that the JCSI has reported on the drafting of these regulations. Paragraph 16 of Schedule 6 to the Syria (Sanctions) (EU Exit) Regulations permits the Secretary of State to issue licences for financial transactions involving the Central Bank of Syria or the Commercial Bank of Syria. The JCSI’s concern is that this paragraph could be seen to prejudge the question of whether those banks are to be designated under the regulations. We take these concerns seriously and recognise that the drafting could have been clearer. However, from the outset, I reassure your Lordships’ House that the Secretary of State’s discretion has not been fettered, and any decision to designate will be taken in the proper way.

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I conclude by saying that of course we support these statutory instruments. We support the policy intent of applying sanctions to effect change; there is no dispute about that. However, I have raised certain specific concerns which I hope that the noble Lord will be able to address.

[Lord Ahmad of Wimbledon]

My Lords, I thank all noble Lords who have participated in this debate. The noble Baroness, Lady Northover, said that I spent a bit more time setting out the detail in my introductory remarks. I had hoped to avert certain questions by doing so, but as I look at the pile of notes in front of me, perhaps that has not quite been the case. However, I want to put on the record my heartfelt thanks to the noble Baroness and to the noble Lord, Lord Collins, in acknowledging the co-operation and collaboration I received during the passing of the sanctions Bill.

Turning to the SIs before the House, again I am very respectful of the detailed assessment that has been made by the noble Baroness, the noble Lord and, indeed, other noble Lords. The noble Lord, Lord Chidgey, has brought to us his specialist insights into Africa. I will certainly seek to answer some of the specific questions which have been raised, but if some are not responded to in the time I have available, I will write to noble Lords.

The noble Baroness, Lady Northover, set out a series of questions on the thematic issues covering cyber, human rights and chemical weapons. As she will know, the EU chemical weapons sanctions regime was adopted in October 2018 and the listings were then adopted in January 2019. On cyber sanctions, we welcome the strong October Council conclusions giving a mandate to progress this work. We look forward to taking this work on through the EU both quickly and thoroughly. Again on cyber, I take the lead responsibility on this issue for the Foreign and Commonwealth Office, and of course I will be pleased to work with the noble Baroness in respect of any specific suggestions she has as we move forward.

The noble Lord, Lord Collins, and the noble Baroness, Lady Northover, both raised the issue of the human rights regime. One example that I can share is that we continue to work closely with our Dutch colleagues by supporting their efforts in crafting a cross-European perspective on human rights for an EU human rights regime. Perhaps I may reassure the noble Lord, Lord Collins, that we are working closely with the Netherlands in that respect.

The noble Baroness, Lady Northover, referred to an issue that she has raised several times in the past. She asked how the UK would work with the EU in the future on sanctions, and specifically how that would be decided. The EU-UK political declaration states that there would be consultation on sanctions with an intensified exchange of information where foreign policy objectives are aligned, with the possibility of adopting mutually reinforcing sanctions. We are working to strengthen our bilateral relationships with key partners not only in Europe but also globally. We are also establishing a new network of sanctions officers in key partner countries.

Perhaps I may also say for the record that I agree completely with the noble Lord, Lord Collins, that the effectiveness of sanctions can be felt only if they are imposed in collaboration and through collective action. It is certainly our intention to do just that. There is no point imposing sanctions on an individual or organisation if they can be in a neighbouring country and operating freely. The collaboration and collective action we have seen with the EU—the close co-operation—will continue after we leave the European Union.

The noble Baroness, Lady Northover, asked a specific question about the Belarus sanctions and what they have accomplished thus far. The sanctions regime is part of our efforts to engage with the Government of Belarus to improve the situation, particularly on human rights, democracy and the rule of law. It is also designed to encourage the Belarus authorities to institute credible investigations into and criminal proceedings against persons responsible for the disappearances of various individuals between 1999 and 2000. I assure noble Lords that they are having an effect. We will continue to press—through bilateral discussions as well as through the EU with colleagues—the continuing importance of seeing that effected.

The noble Baroness and the noble Lord, Lord Collins, raised the issue of Syria. A series of sanctions continue to be in place across the piece on Syria, and I will come on to some of these in a moment. They act as a key lever by which we maintain pressure on the Assad regime to end its atrocities against the Syrian people and to engage seriously in the UN-led political process. Sanctions on Syria aim to end the violent repression of the civilian population, and we will continue to raise these issues consistently.

The noble Lord, Lord Chidgey, talked of Zimbabwe and what has been achieved thus far. As the noble Lord will know, Zimbabwe remains one of the UK’s 30 human rights priority countries. The UK continues to call for the Government of Zimbabwe to uphold the rule of law and human rights and to promote free and fair elections under the protection of the 2013 constitution and international human rights law.

The noble Lord raised the issue of a limit to the number of sanctions. I believe that we have been balanced in our approach while very candid and forthright on human rights abuses. I am sure the noble Lord agrees that the Zimbabwean economy continues to be very fragile and faces severe challenges. We are therefore balancing to ensure that we can continue to commit to some of the reforms we wish to see while maintaining a sanctions policy that still allows the economy to develop and the citizens of Zimbabwe to progress. The situation in Zimbabwe remains very fragile, and we will continue to work closely to ensure that, while the sanctions are being imposed, at the same time we look to provide some relief for the economy of Zimbabwe.

The noble Baroness, Lady Northover, asked what we hope to achieve from some of the sanctions against Russia. She is quite right to say that we led on many sanctions regimes, particularly in areas of financial services. She expressed concern over how this will continue once we leave the EU. While I cannot give her the specific nature of the governance procedures—I am sure she will respect that; it will be under discussion—I believe we will work in close alignment with EU partners and, indeed, other partner countries as well to ensure that the sanctions applied to Russia and elsewhere continue to be effectively applied.

The noble Baroness asked specifically about stronger sanctions against Russia. Through a combination of our leadership and diplomatic engagements, the UK has been at the forefront of strengthening EU sanctions in response to Russia’s actions in Ukraine. This includes new sanctions designations in response to Russian elections in Crimea, the construction of the Kerch bridge linking Russia to Crimea and, most recently, Russian aggression in the Black Sea. The UK has also been at the forefront of efforts to put in place a new EU sanctions regime focused exclusively on chemical weapons that was adopted in October 2018.

The noble Lord, Lord Chidgey, asked for examples of violations not tolerated in Zimbabwe. We condemned the human rights violations by security forces in January 2019, including the use of live ammunition against protesters. The Zimbabwe Human Rights NGO Forum has recorded many human rights violations, including 17 deaths and 81 gunshot injuries. Minister Baldwin summoned the Zimbabwe ambassador on 17 January to urge the security forces to stop using disproportionate force. As the Foreign Secretary said in the House of Commons on 22 January, President Mnangagwa must not turn the clock back. He needs to work with all Zimbabweans in dialogue for a better future. As I said, we are applying sanctions in a way that will bring some relief to the Zimbabwean people, but I assure the noble Lord that we are keeping a very close watch on the prevailing political issues on the ground.

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[Lord Collins of Highbury]

Perhaps I may ask the noble Lord about the Joint Committee and the consultation that might have taken place.

[Lord Ahmad of Wimbledon]

I think that the Joint Committee has reported back but, if I may, I will cover that in my letter to the noble Lord. He raised one other point about NGOs which I have not covered. During the course of the Bill we had a discussion in which NGOs were directly involved, and there are now provisions in the Bill to protect humanitarian elements. We will continue to work very closely with NGOs. I am looking towards the Box for an answer to his specific question. I am not aware that consultations were held with the NGO community in advance of the SI. However, it is a practical idea, and consultation is always useful. I am a great believer in consulting with NGOs. As I said, I will write to the noble Lord with an answer to his question.

Once again, I put on the record my thanks to all noble Lords who have participated in this debate. I apologise if my voice sounds slightly hoarse. As I am sure noble Lords will appreciate, I am fasting at the moment. With the day having started at half-past three, and with various speeches, Questions, Statements and SIs, as much as I enjoy my role at the Dispatch Box, by 7 o’clock the Ahmad voice needs a rest. However, I appreciate noble Lords’ contributions.

Motion agreed.