Andrey Lugovoy and Dmitri Kovtun Freezing Order 2016

Lord Ashton of Hyde Excerpts

Wednesday 10th February 2016 Grand Committee

Moved by

[Lord Ashton of Hyde]

That the Grand Committee do consider the Andrey Lugovoy and Dmitri Kovtun Freezing Order 2016.

Relevant document: 16th Report from the Joint Committee on Statutory Instruments

[Lord Ashton of Hyde (Con)]

My Lords, before I start, I would like to make the Committee aware that some minor errors were made when the order was laid. These did not impact on the substance of the order and have now been corrected by way of a correction slip.

I am sure that noble Lords will already be aware of the Litvinenko inquiry, which published its findings on 21 January. This was the independent inquiry into the death of Alexander Litvinenko in 2006. I start by echoing the words of the Home Secretary in her Statement on that day in thanking Sir Robert Owen for his thorough inquiry and clear yet deeply disturbing conclusions. I am sure noble Lords will be aware of those conclusions but I shall reiterate them today as they are of relevance to the debate.

The key finding was that Mr Litvinenko was deliberately poisoned by Andrey Lugovoy and Dmitri Kovtun using polonium-210, a radioactive isotope. The report also found that this operation was probably authorised by Nikolai Patrushev, head of the Russian Federal Security Service at the time, and by President Putin. In response to these conclusions the Treasury laid an order to impose an asset freeze against Lugovoy and Kovtun, the two individuals directly implicated in Mr Litvinenko’s tragic death. I shall set out today why this was an appropriate and proportionate response.

Shortly following Mr Litvinenko’s death, the Metropolitan Police launched a murder investigation in relation to the case. Mr Lugovoy and Mr Kovtun are the prime suspects and there are currently Interpol notices and European arrest warrants against them. While the Crown Prosecution Service has also sought extradition of the chief suspect, Mr Lugovoy, Russia has consistently refused to comply with this request. The Metropolitan Police investigation is still open and I pay tribute to it in its extremely challenging circumstances.

In the light of Sir Robert Owen’s unequivocal finding that Mr Lugovoy and Mr Kovtun killed Mr Litvinenko, the Government have taken the view that it is appropriate to take further steps. That is why the Home Secretary wrote to the independent Director of Public Prosecutions asking her to consider whether further action could be taken and why, following the inquiry’s report, the Treasury moved swiftly to impose an asset freeze on the two individuals responsible for Mr Litvinenko’s death. The Treasury took this action under a power contained in the Anti-terrorism, Crime and Security Act 2001. Under the Act the Treasury’s powers include making a freezing order when a threat to the life of a UK national has been, or is likely to be, taken by non-UK residents. The Treasury was satisfied that the roles of Mr Lugovoy and Mr Kovtun in Mr Litvinenko’s death clearly fulfilled these criteria. The order will be an effective deterrent and a signal that this Government will not tolerate such threats on British soil.

The asset freeze prohibits UK persons from making funds available to Lugovoy and Kovtun and denies them access to the UK financial system. In circumstances where it is necessary for frozen funds to be used, those wishing to do so must seek a licence from the Treasury.

I am sure the Committee agrees that the ideal response to the killing of a British citizen on the streets of London is to bring those responsible to trial in a British court. Until this can be done, the asset freeze, together with the other measures the Government have already taken, sends a clear message that we will defend our national security and rule of law.

Some responded to the inquiry’s conclusions with calls for us to radically reform our relationship with Russia. However, as the Home Secretary set out, the findings of the report do not come as a surprise. Indeed, the roles of Lugovoy and Kovtun and the probable involvement of the Russian state are consistent with long -held assessments of successive Governments. These assessments informed the previous Government’s response in 2007, which included visa restrictions and expelling certain officials from the Russian embassy in London. The conclusions of the inquiry confirm that successive Governments have been right to keep those measures in force to date.

This is not business as usual with Russia. Our relationship with the Russian state is heavily conditioned. The Government have reinforced this message following the publication of the inquiry’s report. We have made very clear our profound concerns to the Russian Government in Moscow and we have summoned the Russian ambassador to the Foreign Office in London. We will continue to demand that the Russian Government do more to co-operate with the investigation into Mr Litvinenko’s death. This must include extraditing the main suspects, providing satisfactory answers and accounting for the role of their security services.

We are very clear about the wider threats posed by Russia, which the Government have outlined in the national security strategy. We have long been aware of Russia’s disregard for international norms and principles. That is why we led the call in the EU for sanctions in relation to Russia’s actions in Crimea and eastern Ukraine and why, when we engage with Russia on a variety of issues, including the fight against Daesh, we do so guardedly and with our eyes wide open. We are also clear, however, that it would be a mistake not to engage with Russia on these issues. None the less, we take very seriously the implications of the inquiry’s findings and we will continue to take the steps necessary to protect UK citizens and pursue justice.

I hope that I have assured noble Lords that the asset freeze imposed on Mr Lugovoy and Mr Kovtun is an appropriate and proportionate response to their role in Mr Litvinenko’s death. The Government believe that, in addition to the steps taken in 2007, this order is a proportionate measure and is necessary to send a clear message to those who would wish to undertake similar acts in future. I therefore commend this order to the Committee and hope that noble Lords support the Motion to approve it.

[Lord Tunnicliffe (Lab)]

As the Minister has outlined, this instrument creates a freezing order that prohibits persons from making funds available to or for the benefit of Andrey Lugovoy and Dmitri Kovtun.

The Home Secretary stated her intention to pursue this course of action in response to the publication of the report by Sir Robert Owen into the death of Alexander Litvinenko. The report, which was published last month, confirmed that Andrey Lugovoy and Dmitri Kovtun were responsible for the death of Alexander Litvinenko, a British citizen, and that it was sanctioned by the Russian state at its highest level. It was an unparalleled act of state-sponsored terrorism and, as my right honourable friend Andy Burnham, the shadow Home Secretary, made clear in the other place, we welcome the measures that the Home Secretary announced in response to the findings. We therefore fully support this order today.

The conclusions could not have been more clear or harrowing. While we fully back the order, as the Minister might expect I have a number of questions about its specifics and how it relates to what the Home Secretary said last month, particularly with regard to whether further asset freezing is being considered.

I have some specific questions about the order itself. Given the nature and necessity for it to be produced as quickly as possible, it is completely reasonable that no consultation or impact assessment was carried out. However, I have questions about the process of the review that this instrument is required to go through in accordance with the Anti-terrorism, Crime and Security Act 2001. Paragraph 12.1 on page 3 of the Explanatory Notes states that the Treasury is obliged to keep the freezing order, and therefore the instrument, under review. What form will these reviews take, and how frequently will they take place? Will they be subject to parliamentary scrutiny? In relation to that, can the Minister go into more detail about whether this order is indefinite or subject to an expiry date? What conditions will it be subject to?

The order requires that the Treasury gives notice to those whom it is directed against. Is the Minister able to tell us whether either of the individuals in question have made representations to a member of the Government regarding this order?

On a technical point, paragraph 3.3 of the Explanatory Notes explains that, disregarding minor or consequential changes, the territorial application of this instrument includes Scotland and Northern Ireland. Will the Minister set out what these minor and consequential changes are and whether they will have implications for the policy outcome?

I turn to wider concerns and how they relate to this order. I note that the Home Secretary said in her Statement in the other place:

“I have written to the Director of Public Prosecutions this morning asking her to consider whether any further action should be taken, in terms of both extradition and freezing criminal assets”.—[Official Report, Commons, 21/1/16; col. 1570.]

This is of particular importance because, as Sir Robert’s report confirmed that no individual committed these crimes alone, a network of people have known about and facilitated this crime. We understand that Mrs Litvinenko has also prepared a list of names to be submitted to the Government of people who have aided and abetted the perpetrators, against whom she believes sanctions should be taken. What further asset freezing is the Home Secretary considering and what legislation, secondary or otherwise, would be required? Are these asset freezes being considered for other named individuals besides Andrey Lugovoy and Dmitri Kovtun?

The Explanatory Notes mention the risks relating to asset flight. Has there been any suggestion of asset flight since the publication of Sir Robert’s report on 21 January, and noon 22 January, when this order retrospectively applies from?

Finally, we welcome the Home Secretary’s announcement that Interpol notices and European arrest warrants are in place. However, given that these two individuals are reported to be travelling, can the Minister say whether the Government are working with all EU, NATO and Commonwealth allies and asking for immediate co-operation not only on whether they are prepared to take similar action to that outlined this afternoon but also on extradition?

I appreciate that the Minister may have to consult his colleagues in the Home Office on some of these points so may not have all these answers to hand today. If this is the case, I would appreciate it if he would write to me. The far-reaching implications of the report’s findings cannot be overstated and clearly more work needs to be done to deliver justice, which may or may not include further asset freezing. I reiterate that we are committed to working with the Government to bring this about, and end by saying once again that the Opposition completely support this order.

[Lord Ashton of Hyde]

My Lords, I thank the noble Lord for his general support for this order. I will do my best to answer his questions. I am glad that he supports the order; I do not look forward to answering his questions when he does not support an order.

As I set out in my opening remarks, the Government take the conclusions of this inquiry very seriously. While the inquiry’s finding of probable state-sponsorship of Mr Litvinenko’s death comes as no surprise, we are determined to demonstrate that we will take action to deter those who threaten our national security and the rule of law. National security is of great importance to us all, and any attempt to undermine it must be met with a carefully considered and proportionate response.

I turn to some of the questions that the noble Lord asked. To start with, he asked a very reasonable question about the Explanatory Memorandum stating that we have to keep the freezing order under review. Under the Anti-terrorism, Crime and Security Act, the Treasury is required to keep under review whether the measure should be kept in force or amended. We will continue to monitor the information we have and will take any further action should the situation develop. However, the freezing order will lapse two years after it was made, as set out in Section 8 of the 2001 Act. We will continue to monitor the evidence, and if the order is still in force after two years, we will consider at that point whether it is necessary and proportionate to make a new order.

--- Later in debate ---

[Lord Tunnicliffe]

One question the noble Lord does not seem to have answered is whether other individuals implicated in the case are being considered for freezing orders. Perhaps his quite numerous team have the answer to that question between them.

[Lord Ashton of Hyde]

As the noble Lord may know, Mrs Litvinenko’s lawyers provided a list of people who she felt should have further action taken against them. Some are members of the Russian authorities who are already under sanctions relating to Crimea and activities in Ukraine. The rest of the list is being considered by the Home Secretary, but so far no action has been decided upon.

I believe that I have answered all the questions. We think that an order under the Anti-terrorism, Crime and Security Act is an appropriate way to send a clear message, and we believe that both of the tests required under the Act to make this order have clearly been met. I am grateful for the contributions from noble Lords, and I commend the order to the Committee.

Motion agreed.