Russia: Sanctions

Lord Dodds of Duncairn Excerpts

Thursday 3rd March 2022 Lords Chamber

Asked by

[Lord Dodds of Duncairn]

To ask Her Majesty’s Government what assessment they have made of the likely impact of the sanctions they have introduced against Russia since the invasion of Ukraine.

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

My Lords, the impact of our and the allied sanctions is significant. At least $250 billion has been wiped off the Russian stock market since the invasion and the rouble has reached record lows against the dollar and sterling. The central bank of Russia has taken unprecedented measures to prop up the rouble, preventing capital flight, and has raised interest rates to 20% from 9.5%. We have also restricted access to high-end technology, blunting the Russian economy for years to come. We continue to ratchet up pressure in conjunction with our allies.

[Lord Dodds of Duncairn (DUP)]

My Lords, the courage of the Ukrainian people continues to inspire us all, but it also compels us to ask what more can be done. There is no doubt that the sanctions that have been introduced by this country and across the world have been far more far-reaching in their application and scope—and indeed the speed of their introduction—than the Kremlin could possibly have imagined. We have seen major changes in some Governments’ approach to defence issues, for instance; I think of Germany. Is the Minister concerned about those countries which are not stepping up to the mark? I think of the Commonwealth countries such as India, the most populous democracy in the world. What is being done to try to persuade it to join the international consensus? There is also, of course, China. What can be done to persuade it to do more behind the scenes to be an influence for good in this terrible situation?

[Lord Ahmad of Wimbledon (Con)]

I agree with the noble Lord. There has been unprecedented action to work with our allies in applying sanctions. This underlines the effectiveness of the sanctions: we are able to work together with those countries or jurisdictions, such as the EU, which also have sanctions policies. The noble Lord raises a valid point about what more can be done. We will be debating the laying of further sanctions later today. Further sanctions on Belarus have also been announced—there will be legislation in that respect.

On the specific question of the Commonwealth, I am engaging directly with key partners. We secured a great deal of support from Commonwealth partners at the UN General Assembly vote. Yesterday, we saw 141 nations of the UN General Assembly vote in favour of the Ukraine resolution. That is no small feat.

I will turn to the important issues of China and India. China abstained and did not veto the resolution twice over. India obviously has a long-established relationship with Russia. However, I assure noble Lords that we are working very closely with our Indian partners to also encourage them to reflect on the current situation. As we have seen, they are also extremely challenged by the exodus of Indian students from Ukraine. I assure the noble Lord that we are working very closely with India, and other partners, in this respect.