Russia (Sanctions) (EU Exit) (Amendment) (No. 7) Regulations 2022

Lord Collins of Highbury Excerpts

Tuesday 26th April 2022 Grand Committee

My very final comment is that there are worrying signs in the breakaway Moldovan area of Transnistria, which could be other red-flag activities. While I support the UN and the efforts for discussion and dialogue, it is worrying that Putin is seeking to use the same tactics that there were at the start of this campaign against Ukraine and elsewhere. It means these efforts and this cross-party working needs to be strong within the United Kingdom to ensure that there is no impunity for any of these actions.

[Lord Collins of Highbury (Lab)]

My Lords, I thank the Minister for his introduction. As he said, as Putin continues his illegal war the tragic consequences for Ukraine and its people are mounting. From the beginning, we have fully supported the Government in their efforts to hold those responsible to account, and we will continue to do so by welcoming the new measures being debated today.

Over two months have now passed since the full invasion began and while today’s seventh and eighth packages are a step in the right direction it is vital, as the noble Lord, Lord Purvis, said, that the Government now lead the way in moving faster and harder on economic and diplomatic sanctions. In doing so, however, they should also reflect on and monitor the effectiveness of those which have already been implemented. I hope the Minister can explain how the department is analysing the effect of sanctions brought forward since the invasion. Is he able to share any data on this with the Committee?

The Government have previously estimated that the value of sanctioned assets is around 60% of Russia’s foreign currency reserves. I hope the Minister can explain to the Committee exactly what steps the department is taking to monitor this. Is that information being calculated and shared with our allies?

I turn to the specific sanctions before the Committee. The No. 7 regulations extend existing sanctions on Crimea to the area of the Donbass. I am pleased that the Government are taking action to prevent occupied territories becoming economic enablers for the invasion. However, given that Putin recognised the illegal regimes in these areas many months ago, I hope the Minister can explain the delay in the introduction of the sanctions. As he told us, as part of the No. 7 regulations, the Government are extending them to shipping. But the Minister in the other place, James Cleverly, was unable to confirm whether this means that all state shipping companies, as well as Russian-flagged vessels, are now sanctioned. I hope the noble Lord can clarify that this afternoon.

I am pleased that the Government are introducing the No. 8 sanctions, which focus on a variety of goods, as he indicated, including luxury items and technology as well as iron and steel products. However, questions remain over the time it has taken to close these loopholes. In addition, the Explanatory Memorandum notes that these sanctions are also intended to correct a series of defects, as the noble Lord, Lord Purvis, indicated. I hope the Minister can expand on the effect of the defects and on what impact they may have had.

As the Minister said, it is important that we explore all options. It would be good if we could hear from him exactly how we can act against those who act as proxies for individuals and organisations in order for them to bypass sanctions. The US has implemented such laws and it would be good to see how they will be impacted. Enforcement is crucial to making sanctions work, and the Minister has repeatedly said that this means acting in concert with our allies, but it is also about ensuring that we have sufficient resources to do the job that Parliament asked the Government to undertake. James Cleverly said yesterday that increasing staffing levels in this area is not easy, but he assured my honourable friend Stephen Doughty that Ministers have tripled the number of people working in enforcement at the FCDO since January. I hope the noble Lord can tell us what tripling means. What are the precise numbers involved? The drafting and development of the sanctions packages are separate from the Office of Financial Sanctions Implementation and other bodies involved in enforcement. I hope the noble Lord can tell us this afternoon that resourcing has gone up in both the development of policy and the enforcement bodies.

The Minister previously assured us about the application of sanctions in the UK’s overseas territories and Crown dependencies. Can he tell us what discussions the Government have had with them to ensure the effective enforcement of sanctions across all jurisdictions? He and the Government will continue to have the support of these Benches in bringing forward sanctions and new designations, but I hope that further steps will be taken in the next Session to reflect the immense bravery shown by the people and political leaders of Ukraine.

I hope the Minister will not mind me, like the noble Lord, Lord Purvis, seeking an update on a number of other issues not strictly related to sanctions. One is the humanitarian support that we give. The Government have admitted that only one-third of the £220 million pledged had been delivered by 1 April. Will the Minister explain the barriers to the full amount of promised humanitarian aid being delivered? Will he tell us a bit more about what we are doing to support Ukraine’s neighbours in dealing with the influx of arrivals fleeing the war? I know that the Minister has been focused on the Preventing Sexual Violence in Conflict Initiative and that we have a ministerial conference coming up. One of the most horrendous pieces of evidence we have seen has been the use of rape as a weapon of war in Ukraine. Will he update us on what support we are able to give not only in gathering the evidence of such crimes against humanity but in supporting the victims of such shocking crimes?

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I trust I have covered the questions raised.

[Lord Collins of Highbury (Lab)]

Overseas territories?

[Lord Ahmad of Wimbledon (Con)]

Sorry. Yes, we are working very closely with overseas territories. All the measures are applied quite directly through orders in council, apart from in two overseas territories that legislate directly for themselves. I believe that is Gibraltar and Bermuda, but they are working very closely to the same effect. Our teams and our overseas territories team are working very closely with the OTs on specific applications. Again, if I may, specifically on the application of these sanctions and the result or reports received from the OTs, I will share that with the noble Lord in writing.

I trust I have answered all the questions asked. I will of course write where appropriate. I thank noble Lords once again for their specific questions and, most importantly, for the strong support that we continue to see on the important issue of Russian sanctions. I commend these regulations to the Committee.