Sanctions (EU Exit) (Miscellaneous Amendments) (No. 4) Regulations 2020

Lord Ahmad of Wimbledon Excerpts

Monday 8th February 2021 Grand Committee

Moved by

[Lord Ahmad of Wimbledon]

That the Grand Committee do consider the Sanctions (EU Exit) (Miscellaneous Amendments) (No. 4) Regulations 2020.

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

My Lords, these instruments were laid between July 2019 and December 2020 under the powers provided by the Sanctions and Anti-Money Laundering Act 2018, also known as the sanctions Act. As noble Lords will be aware, the sanctions Act provides the legal framework within which the UK may impose, update and lift sanctions, whether autonomously or in line with our UN obligations, now that we have left the EU. It is the foundation for an independent sanctions policy in support of our foreign policy and national security interests.

To establish individual sanctions regimes within that framework, we are required to lay statutory instruments. Of the nine instruments we are considering today, seven transition existing EU regimes into UK law. As set out in my letter to parliamentary colleagues of 25 January, the new UK regimes and the measures they contain are intended to have substantially the same effect as those they replace. The two remaining instruments amend the other statutory instruments that establish sanctions regimes.

The amendments in the Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2020 are designed to ensure that our entire suite of sanctions legislation is as consistent and clear in its provisions as possible. Many regimes contain the same sanctions measures and we strive for consistency in language to promote consistency in interpretation, application and enforcement. British businesses often export goods or provide services to more than one country subject to sanctions, and any inconsistency in the wording of the legislation can cause confusion and increase their compliance costs.

The amendments in Sanctions (EU Exit) (Miscellaneous Amendments) (No. 4) Regulations 2020 ensure that UK persons in the Crown dependencies and overseas territories are not unduly affected by the extraterritorial application of UK law. They create an exception to the extraterritorial prohibition so that a licence from the authorities in that jurisdiction is sufficient to authorise UK persons’ conduct there. Those persons do not then need also to obtain the licence from the UK authorities to avoid committing an offence under UK law.

I would now like to elaborate further on the purposes of the seven regimes which these instruments establish. First, the Bosnia and Herzegovina sanctions regulations are aimed at promoting peace, stability and security in Bosnia and respect for its sovereignty and territorial integrity. They are also intended to encourage compliance with and the implementation of the general framework agreement for peace, which established Bosnia and Herzegovina as a single sovereign state. The regulations permit the imposition of financial and immigration sanctions.

The Burundi sanctions regulations aim to encourage the Government of Burundi to respect democratic principles and institutions, and the rule of law and good governance in Burundi; to participate in negotiations with their political opponents in good faith to bring about a peaceful solution to the political situation; to refrain from policies or activities that repress civil society; and to comply with international human rights law and respect human rights. They permit the imposition of financial and immigration sanctions.

The cyber sanctions regulations are aimed at preventing certain types of cyberactivity that undermine the integrity, prosperity or security of the UK or any other country. They are also intended to prevent certain types of cyberactivity that cause the economic loss or prejudice of commercial interests, undermine the independence or effective functioning of an international organisation, or otherwise affect a significant number of people in an indiscriminate manner. The regulations permit the imposition of financial and immigration sanctions. We have imposed sanctions on the same 12 individuals and entities as were sanctioned in 2020 by the EU. These include actors from Russia, China and the Democratic People’s Republic of Korea.

The Guinea sanctions regulations aim to encourage the Government of Guinea to properly investigate the violent repression that took place on 28 September 2009 and its aftermath, as well as to hold those responsible to account. The regulations permit the imposition of targeted financial and immigration sanctions.

The misappropriation sanctions regulations are aimed at deterring and providing accountability for the misappropriation of state funds from a country outside the UK. They permit the imposition of financial and immigration sanctions. Rather than establish geographical regimes, as existed under EU legislation, this instrument creates a single thematic regime under which designations can be made in respect of misappropriation of state funds taking place anywhere outside the UK, allowing for greater agility and flexibility.

The Nicaragua sanctions regulations are aimed at encouraging the Government of Nicaragua to respect democratic principles and institutions, the separation of powers and the rule of law, to refrain from the repression of civil society and to respect human rights. The regulations permit the imposition of financial and immigration sanctions.

The Unauthorised Drilling Activities in the Eastern Mediterranean (Sanctions) (EU Exit) Regulations 2020 aim to discourage any unauthorised hydrocarbon exploration or production activities in the territorial sea or exclusive economic zone of the Republic of Cyprus or on its continental shelf. They permit the imposition of financial and immigration sanctions.

In conclusion, sanctions are a key part of many of the UK’s political and diplomatic strategies. They also contribute to our efforts to uphold and defend the rules-based international order. The United Kingdom has long been a global leader in this field and this will not change now that we have left the European Union. Our independent sanctions policy allows us to use sanctions to achieve maximum impact by working in a way that is agile, expertise-driven and in support of our values, and enables collaboration with both new and established partners. International co-operation is at the heart of our policy. As I have said a number of times, sanctions are most effective when implemented and enforced collectively. We will continue to co-ordinate closely with our European and other international partners on sanctions, using the excellent relationships and networks we have already established.

These regulations are a crucial part of the legal basis that underpins our sanctions policy and of which the sanctions Act is the keystone. With them in place, we can promote and protect security, stability and prosperity at home and overseas, call for accountability and justice, and deter human rights violations and abuses. In short, they will help us to project the United Kingdom as a force for good in the world. I beg to move.

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[Lord Ahmad of Wimbledon (Con)]

My Lords, I thank all noble Lords for their very valuable contributions and the broad level of support that we saw during this debate. I also recognise the important role of, and the various points made on, the process and procedure. I thank my noble friend Lord Balfe for articulating in a succinct manner—as it saved me having to answer the question—what the current procedures are. However, I never shy away from any challenge in the questions that the noble Lord, Lord Foulkes, always poses most courteously. I look forward to debates on this issue and others with him.

Having thanked all noble Lords for their participation, I will get to the specific questions raised. Following the normal courtesy, if there are questions that I am unable to answer in the time allocated, I will certainly write to noble Lords and review Hansard to pick up on some of those specifics.

Along with his original questions, the noble Lord, Lord Chidgey, raised the importance of his expertise and insights in parts of the world. He raised specific issues about certain individuals in Guinea not being rolled over in the original sanctions tabled by the EU. This will in part also answer the question raised by various noble Lords, including the noble Lord, Lord Empey, and my noble friend Lord Balfe, about the effectiveness of sanctions. When these original sanctions were approved it was partly to ensure that there would be a change in behaviour, while recognising any steps taken by new Governments and individuals within them.

I also reassure noble Lords that when applying the sanctions, through the sanctions Act itself and the subsequent global human rights sanctions regime, we are relatively new to this area in terms of specific sanctions on individuals. The noble Lord, Lord Truscott, recounted specific sanctions on individuals and countries, and mentioned the Middle East. I am sure he will recall that, when it came to the global human rights sanctions, a number of individuals from the Kingdom of Saudi Arabia were covered in the original sanctions designations.

Several noble Lords, including the noble Baroness, Lady Northover, my noble friends Lord Balfe and Lord Northbrook, and the noble Lord, Lord Truscott, raised Cyprus and the sanctions as they apply there. I agree with the noble Baroness on the wider context of the discussions in Cyprus. As noble Lords will recognise, my right honourable friend the Foreign Secretary visited Cyprus on 3 and 4 February. He met the President of Cyprus and the leader of the Turkish Cypriots. The primary focus in the areas covered was on not just the issues in the sanctions—as put forward by many noble Lords, with whom I agree—but bilateral and regional issues ahead of the UN-convened talks, which I believe take place next month. The context of the peace talks was very much part and parcel of the discussions that my right honourable friend had in country. I therefore hope my noble friend is reassured that we are looking at all elements and talking to all sides when it comes to not just the areas covered in the sanctions regime, but the wider issues of settlement. We recognise the important role the UK can play in this regard.

The noble Baroness, Lady Ritchie, and others talked about the importance of our EU partnerships. It did not surprise me when the noble Baroness, Lady Northover, did so in her opening remarks. As I have said, we will of course continue to work very closely with our EU partners and others in this respect. I have said to noble Lords that I regularly have discussions with the lead human rights official in the European Commission, Eamon Gilmore. Indeed, we were in deep discussions prior to the introduction of the EU global human rights regime.

My noble friend Lord Empey raised the formality of structures. I assure him that the strength of our relationships with the European Union and key partners in it is shown in various statements we have made beyond sanctions—particularly on the situation of the Uighur Muslims—which demonstrate the open communication that we retain and, equally, how we work with other key partners on sanctions, such as the United States, Canada and other allies. We will continue to do just that. The primary basis of any sanctions regime is that it is co-ordinated.

The noble Baroness, Lady Ritchie, rightly talked of Myanmar, as did other noble Lords. The noble Baroness, Lady Northover, specifically mentioned the leadership we showed during our membership of the European Union against 16 individuals. As noble Lords will recognise, of the military leadership that has taken control in the coup in Myanmar, the leader and his deputy are currently sanctioned. Whether in Myanmar or in China, which the noble Baronesses, Lady Ritchie and Lady Northover, and the noble Lord, Lord Collins, raised, specifically on the Uighurs, we keep the situation in review.

I cannot get into specifics. Noble Lords rightly raise timelines and when particular designations happen around the world, but I cannot speculate in that respect. However, I assure noble Lords, as I have sought to do as FCDO Minister and Minister for Human Rights, that I will take on board the approach that the noble Lord, Lord Oates, acknowledged of talking through specific situations as and when we can, and as early as possible, as well as sharing information with noble Lords.

The noble Lord, Lord Foulkes, asked about the process, which I have already covered specifically. He also talked about the importance of working with our overseas territories. I assure all noble Lords that the Orders in Council for each designation, with the exception of Bermuda and Gibraltar, are initiated by the United Kingdom. They will reflect exactly the same provisions that apply in UK jurisdictions to allow for a co-ordinated approach. I can also assure the noble Baroness, Lady Northover, as a Minister who worked directly with the overseas territories during the passage of the Sanctions and Anti-Money Laundering Bill, that our co-ordination is for territories that do not have capacity for technical support. The noble Lord, Lord Collins, raised this, and it arose in the other place. We are lending technical support to the overseas territories. I am sure noble Lords recognise that many do not have the infrastructure for financial services, for example, and need support. We are working directly with the OTs in this respect.

I assure the noble Lord, Lord Foulkes, that prior to the introduction of, for example, the requirement for public registers, we also operated with key overseas territories on the exchange of notes, which allowed tax and legal agencies to access all the required information. If any specific concerns arise for noble Lords on the application of these issues in the overseas territories, they should raise them with me. I will seek to address them directly.

I thank the noble Lord, Lord Dodds, for his support. He rightly raised cyberactivity. As he recognised, we saw an increase in such challenges in our own Parliament a few years back. Indeed, I recall that we had a cyberattack on the same day as the tragic terror attack on Parliament. It shows the vulnerabilities, and the increased activity required, in this area. It also underlines the importance we attach to this area of our sanctions work.

The noble Lord rightly raised the Putin regime and issues around Navalny, China and Myanmar. As I am sure he recognises, we have sought to lead and provide direction on sanctions in Myanmar and in the case of Mr Navalny. The noble Lord and my noble friend Lord Empey raised the situation in Libya and the Shawcross report. We discussed this in your Lordships’ House. I have taken note of the concerns that have again been expressed. If there is any more detail on the questions my noble friend Lord Empey raised I shall seek to raise it.

I am being told by my noble friend who is whipping the debate that I am running out of time. In my last few seconds, I acknowledge the valuable work done by Remembering Srebrenica and the points made by my noble friend Lord Bourne. I assure him that we look fully at guaranteeing the sovereign and territorial integrity of Bosnia-Herzegovina. He talked about guidance. I believe that it has already been published.

On the specific area of continuing to work at and ensuring the refreshing of our strategy, I say to all noble Lords who raised the effectiveness of the various regimes that provisions in the sanctions Act require reporting back on the effectiveness of each regime. The Act also allows opportunities for individuals to review sanctions applied to them so that they can have a process for appeal. I will continue to update your Lordships’ House on the operation of the sanctions regimes. Indeed, I look forward to further discussions on specific designations in this important area.

I once again thank all noble Lords for their participation. This work is evolving. I noted again with great care various noble Lords’ specific questions and practical suggestions on strengthening work in this area. I look forward to further debate and constructive discussions in this regard.

Motion agreed.