Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2024

Lord Callanan Excerpts

Monday 21st October 2024 Grand Committee

[Lord Purvis of Tweed (LD)]

I am grateful for the Minister outlining in clear terms the Government’s position on the wider aspects of the sanctions enforcements. I support this measure. I spoke on the previous regulations on 19 July 2023, when I raised the issue that the Law Society had brought to our attention. It has subsequently had follow-up communications saying that this permanent solution is preferable, and I therefore support it.

I will raise a separate issue that the noble Lord, Lord Alton, spoke to me about—I think he spoke to the Minister prior to the Committee—concerning shipping insurance. I checked Hansard and, on 1 February 2022, I raised a question about this in a debate on one of our early Russia sanctions. The Minister’s colleague, the noble Lord, Lord Collins, heard us raise the continuing concerns in Grand Committee last week. I understand that this has also been raised in a letter today from the right honourable Sir Iain Duncan Smith, the chair of the all-party group on Magnitsky sanctions and reparation, regarding the concerns of 12 vessels that it alleges are continuing to receive insurance via the UK. I hope the Minister might reply on this, although I do not necessarily expect her to give the Government’s response to a letter that was sent to the Foreign Secretary today. But we have an important debate in the Chamber on Friday, so an update from the Government, if possible—written to Members of the Committee and also placed in the Library—would be of assistance to us in our debate on Friday. With that, I support the Government’s moves on these sanctions.

[Lord Callanan (Con)]

My Lords, I too can be brief. These are of course updates and clarifications of sanctions introduced by the previous Government. We were grateful for the support of the Opposition then and, on behalf of the Opposition now, I offer my full support for the changes that the Minister announced. It is important that we maintain the principle of unity across the parties in support of these sanctions and of Ukraine, taking action wherever possible to restrict Russia and its activities across the world. We need to be mindful of the big role that the City of London plays across the world in legal, financial and professional services. Some UK companies are undoubtedly involved in helping the Russians to circumvent these sanctions. We fully support the strictest clampdown on these activities. We should be very proud of these industries, but they should be used for right, not for helping Russia in this regard.

Following the noble Lord, Lord Purvis, I offer my support for the letter from Sir Iain Duncan Smith to the Foreign Secretary. We support these sanctions but ask the Government to look again at what more can be done to clamp down on the shadow fleet of tankers that Russia is using to spread its oil and gas around the world. As the noble Lord said, I do not expect the Minister to reply now to a letter that was sent only today and probably has not been received yet, but I hope that the Government can bear this in mind and can possibly give us an answer on Friday. We fully support these sanctions.

[Baroness Chapman of Darlington (Lab)]

My Lords, I am grateful for the support of the noble Lords, Lord Purvis and Lord Callanan. I thank the noble Lord, Lord Purvis, in particular, for his ongoing—I will put it that way—interest in this issue. I very much welcome the comments of the noble Lord, Lord Callanan, on how vital it is that we keep our unity on these issues intact as we move forward. I am grateful and pleased that this is what we have seen today.

On the specific issue about the natural gas tankers, I am grateful to both noble Lords for their forbearance, as I do not have a full response on this today. The insurance is a complex issue. I will endeavour to get a fuller response by Friday. That is not a guarantee but, if I cannot get it by Friday, we will make sure that there is a response to the letter from Mr Duncan Smith.

I will do what I believe is called a pivot, to liquified natural gas more generally. I point out—because it is quite interesting and helpful, although it does not address the issue of insurance head-on—that Novatek, Russia’s largest producer of LNG, suspended production at its flagship Arctic project in April 2024 because of sanctions and a shortage of specialist tankers. This project is critical to Russia’s ambition to triple LNG production by the end of the decade, so we are taking measures that are having some effect on LNG. However, I will come back to noble Lords on the wider issue of insurance.