Russia (Sanctions) (EU Exit) (Amendment) (No. 15) Regulations 2022

Lord Collins of Highbury Excerpts

Monday 21st November 2022 Lords Chamber

[Lord Empey (UUP)]

The noble Lord, Lord Purvis, referred to £18 billion-worth of assets that have been seized. The noble Lord will be well aware of the billions that have been frozen under a United Nations resolution with regard to Libya, which have been untouched and from which victims in this country have not received any support. Is it the case that we could be seeing a repeat of that performance and that those assets will have to be managed? Perhaps investment should be improved by people in our system and then given back again whenever the conflict ends.

[Lord Collins of Highbury (Lab)]

I am just waiting to see whether anyone else wishes to comment—every time someone says something, it provokes a point. I hope I am not going to be too provocative. I want to start by being very clear that the Opposition are at one with the Government on these sanctions. We will do whatever we can to support their speedy reduction. If there is one message from this House, it is that this country is absolutely united against Putin’s illegal war and, in particular, as we have seen, the recent indiscriminate attacks on civilian infrastructure, designed to do one thing, which is to damage the homes and the heating of families and children. So I start by saying that we are absolutely at one with the Government.

The No. 15 regulations rightly extend the prohibitions on goods critical to Russian industries. I am particularly pleased about that instrument ending the importation of liquefied natural gas—LNG—originating from Russia. Western allies, including the EU, have made real progress this year, as the noble Lord, Lord Purvis, said, in obtaining liquefied natural gas from appropriate sources, such as the United States. Prohibiting this Russian source is a good step towards energy security.

There is one thing about the speed of the introduction. The Minister highlighted an error that occurred, but another thing that struck me was that the import ban will not come in until January 2023. He explained that the error would mean that certain prohibitions will not come in until January, but why will that ban not come into force until January 2023?

I want to pick up the point made by the noble Lord, Lord Howell, because he is absolutely right. It is not just about working with allies to impose sanctions. What are we doing to support countries which need these energy supplies? What are we doing to advise them on and provide help with alternative sources? It is not easy for countries to suddenly switch if they have become reliant over the years, so it is not just a question of offering sticks. It is also about encouragement and support, so I hope the Minister can tell us a bit about that.

The ban on liquefied natural gas also prohibits loans to firms that support Russian interests, even if they are based outside Russia. To what extent are the Government already monitoring which companies are providing finance for these purposes? The Minister has said on many occasions that whatever sanctions we may introduce, there will be someone trying to circumvent them. That means enforcement is critical—the noble Lord, Lord Purvis, made this point. The United States appears to have quite strong enforcement measures. Are we examining not just how we act in concert when introducing legislation, but exactly how we can more effectively act in concert on enforcement, which will ensure that people do not easily circumvent it?

My noble friend’s question on circumvention was a good one. If this is being done so explicitly, I hope we can take more direct action on it. However, the regulations also have exceptions—I want the Minister to highlight some of these—which will allow oil products to be provided to third countries. Can he explain a little more about the circumstances where this would be permissible? In particular, we have heard about other countries’ roles in importing and then exporting. We need to be reassured that we are taking that into account.

The noble Lord, Lord Purvis, made the broader point about international co-operation and co-ordination on sanctions. In our consideration of each statutory instrument as it has come in, we have certainly raised with the Minister the fact that the United States and Canada seem able to introduce sanctions faster, or well before our own. There may be good reasons for that—it is an incremental build.

As we move into a longer period of these sanctions, I wonder whether the FCDO has done a general assessment of where and why there may be gaps, and how we can hit Russia with one big hit, rather than taking an incremental approach. It would be really good if Parliament could be given such an assessment. How are we building up allies and persuading others to join, even if they are unable to match our speed of implementation? Are they at least coming on board in some of the other areas?

In conclusion, I reiterate the Opposition’s full support for the Government’s actions here, and we look forward to further clarification.

[Lord Ahmad of Wimbledon (Con)]

I thank all noble Lords who participated in this short but important debate. I again put on record the Government’s thanks for the strong sense of co-operation that has been extended by all noble Lords. In particular, I acknowledge the role played by the Front Benches of His Majesty’s Opposition and the Liberal Democrats; I will continue to share information and work with noble Lords in this respect.

On the point raised by the noble Lord, Lord Berkeley, I will certainly look into it. On circumventing, referred to by the noble Lord, Lord Collins, there will always be ways and means of doing that, and this comes back to effective enforcement, a point made by all noble Lords. That is why we need co-ordination, and not just in the imposition of sanctions. I take on board the point made by the noble Lord, Lord Collins, about ensuring effective imposition, and what the noble Lord, Lord Purvis, said about the impact on the Russian economy. I say again—I know all noble Lords agree on this—that our intention, ultimately, is not to hit the Russian people; it is about ensuring that Mr Putin and his Government feel the full force of international action and collaboration. In this regard, I will certainly come back to the noble Lord, Lord Berkeley, if I have more detail specific to the issue he raised.

My noble friend Lord Howell raised the issues of implementation and circumvention, particularly in respect of oil, and the noble Lord, Lord Purvis, raised working with our international partners. We are strengthening our engagement in this respect and have done so particularly recently. This subject was discussed in the G20, not just the G7. The fact that we are now fully aligned with our partners in the US, Australia and, importantly, across the European Union, allows us to make those points consistently across the piece and in a unified fashion.

The noble Lord, Lord Collins, raised the issue of oil and vulnerable countries. We are not seeking totally to disable economies, particularly of vulnerable countries that are already feeling the real impact. Here, the test will be in the application. We have seen this with energy in Europe, and I have seen it directly in my visits to north Africa in the context of food security. We have implemented these sanctions—I come back to that crucial word, “co-ordination”—in a co-ordinated way, and we are aligned with our partners across the EU, Australia and the US. Coming back to the point made by the noble Lord, Lord Berkeley, there is the question of how we strengthen our maritime co-operation to ensure that any illicit practices can be stamped out.

As I have said, I have always been alive to any issue that has arisen, but particularly when it comes to the impact and application of sanctions, there will undoubtedly be organisations and individuals looking to circumvent them, and it is important that we stay aligned.

Turning to some of the specific questions raised, the noble Lord, Lord Purvis, referred to the delay in bringing measures into force when the EU has already done so. The SI represents the earliest opportunity to match the prohibitions in this area announced by the EU, and I assure noble Lords that we speak to our allies constantly. There are differences in application of the system but, as I said, I take on board the question of how we can close the gap.

I assure the noble Lord, Lord Collins, that there is an analysis. Again, I will check with officials and seek to share what I can. I have had analysis done across the UK, the EU, the United States, Canada and Japan. When it comes to individuals, we are marginally ahead of the EU. When it comes to oligarchs, again, we and Canada seem to be ahead. There are other areas—for example, on entities—where Canada and the United States are ahead. Where systems are fluid, such as here, we are aligned, but we have a running tally to ensure that the entities or individuals that we are sanctioning are fully aligned with our key partners. I will certainly seek to see how much of that I can share at headline level with noble Lords.