Russia (Sanctions) (EU Exit) (Amendment) Regulations 2022

Lord Foulkes of Cumnock Excerpts

Thursday 24th February 2022 Lords Chamber

Moved by

[Lord Foulkes of Cumnock]

“As an amendment to the above motion, at the end insert “but that this House (1) regrets that the sanctions are inadequate, and (2) calls on Her Majesty’s Government to lay more powerful and effective sanctions before both Houses.”

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, first, I sincerely thank the Government and the Opposition Whips for agreeing that there should be some extra time for this important debate, in light of the current situation. I also thank the Minister for his introduction and for the helpful conversations we have had informally. I hope that he will take the opportunity of listening to the debate—I know he always does—and then passing on some comments and suggestions to his colleagues in the FCDO and to the Prime Minister—and I hope he may be able to answer some questions without pre-judging what the Prime Minister might say later.

The situation is unpredictable. Today is a really dark day for Ukraine, and for Europe and the world as a whole, because the future is now terribly unpredictable. I know some Ukrainian MPs who are delegates to the Council of Europe Parliamentary Assembly, as my noble friend does as well, and I fear for them. They will be among the targets if things go wrong in Ukraine, because they have stood up at the Council of Europe and elsewhere and fought the cause of Ukraine very valiantly.

It is clear that the current sanctions have not deterred Putin. The Foreign Secretary said—I think rather infelicitously—that some sanctions had to be “left in the locker”. It is now clear that, while they have been in the locker, they have had little or no effect. So we must now immediately extend our sanctions, and I am glad that the Minister has indicated that that is the intention. We must intensify our co-ordination with the United States, the European Union and other countries.

First, I suggest that we need to expand the list of Russian oligarchs subject to sanctions. The European Union unanimously agreed to target 27 individuals and entities who are playing a role in

“undermining or threatening the territorial integrity, sovereignty and independence of Ukraine”.

Yet, so far, we have sanctioned only five banks and three Russian billionaires. We must extend to at least the European Union’s 27—and beyond, I hope.

The Minister has indicated in a letter to us all that the Government are planning to introduce legislation to prevent the Russian Government from raising finance. This needs to be done urgently. I ask the Minister: can he confirm that this legislation will be brought before both Houses of Parliament at a very early opportunity, so that it is not allowed to drag on?

We should also introduce export controls on Russia, stopping shipments to Russia of microchips, computers, consumer electronics, telecommunications equipment and other items made anywhere in the world if they were produced using US, UK or EU technology. Most importantly of all, we must disconnect Russia from SWIFT. Russia is heavily reliant on SWIFT due to its multibillion exports of hydrocarbons denominated in US dollars. The cut-off would terminate all international transactions, trigger currency volatility and cause massive capital outflows. In my view, and the view of people far more expert than me, it would probably be the most effective action we could take—yet it has not even been mentioned by the Government so far.

We should also sanction luxury property in the United Kingdom.

[Lord Robathan (Con)]

Hear, hear.

[Lord Foulkes of Cumnock (Lab Co-op)]

I am grateful for that support from the other side. Russian businesspeople and officials accused of corruption or links to the Kremlin own at least 150 huge properties in the UK, worth £1.5 billion, according to Transparency International. I accept that there would be some difficulties in doing this, and it would require significantly more resources for our law enforcement agencies, but it should be looked at and I think it should be done.

I also agree that we should target the members of the Duma, the Senate and the Presidential Council. The Minister has indicated that they are compiling evidence, but I hope they will do it quickly because, unlike the oligarchs, they actually advise Putin. Sanctioning the western luxuries they all enjoy—I have seen them enjoy property, schooling and holidays in Europe and the US—will cause a groundswell of discontent. I see some of them as Russian delegates at the Council of Europe. They are parroting the words of Putin; they are his voices in the Council of Europe. I will come back to that in a minute. Mr Tolstoy and Mr Kalashnikov —strange names, but they are very familiar—are hardliners and people we should be dealing with. The only likely way that Putin can be replaced is by people in Russia, and I hope we can make sure that pressure is put on them to do that.

We should also look to provide further lethal and non-lethal aid to Ukraine and neighbouring nations such as Poland, Latvia and Lithuania. We could assist further with intelligence surveillance reports. I know from my time on the Intelligence and Security Committee how good our intelligence agencies are. We can do that without directly entering the conflict and sending troops.

Finally, the leader of the UK delegation to the Council of Europe, John Howell MP, has suggested that we should now expel Russia from the Council. That is a move I would support, as one of the UK delegates to the parliamentary assembly. I hope the Minister, who has the Council of Europe in one of his many and increasing responsibilities, will look at this, because it needs to be done in a co-ordinated way— not just by the parliamentary assembly but by the Governments of the 46 other countries.

Putin needs to know that we are going to take these strong actions and take them now to stop him in his tracks and prevent any further aggression and the inevitable bloodshed that will result. I move this amendment.

[Lord Robathan (Con)]

My Lords, I rise briefly. I take comfort from what my noble friend the Minister has said and pay tribute to the resolve being shown by the Prime Minister and the Government—but they need to do more, as the noble Lord, Lord Foulkes, has said.

This is not new. Litvinenko was poisoned in 2006 not a mile from here; Salisbury, Skripal, et cetera, took place in 2018; the invasion of Georgia, Abkhazia and South Ossetia, took place in 2008, and Crimea in 2014. We must understand the pattern here. As the noble Lord, Lord Foulkes, and I think my noble friend the Minister agree, we must take action now and it must be really dramatic.

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[Lord Ahmad of Wimbledon (Con)]

My Lords, I am very grateful to all noble Lords for their support for the position of the Government, but to be frank it is the position, and rightly so, of our country, which stands united against the aggression of Vladimir Putin in terms of what has happened overnight. The noble Lord, Lord Pannick, made a specific point about what is in front of us—with his legal prowess, I know that is what he is focused on—but as I said in my opening remarks, events have superseded where we are today. While this was tabled, rightly, as a debate on what had already been laid before us, equally, as I have already alluded to, there is more to be done in this area. Statements that will be made later by my right honourable friend the Prime Minister will certainly detail the extent to which further action can be taken.

I can share with the noble Lords, Lord Foulkes and Lord Pannick, and others that we are also looking closely at the economic crime and corporate transparency Bill. The noble Lord, Lord Collins, knows that I have advocated strongly for this, and my right honourable friends the Prime Minister and the Foreign Secretary have recently reaffirmed the Government’s commitment to bringing it forward. This legislation will, of course, significantly enhance our ability to clamp down on dirty money in the UK by reforming Companies House, a point made by the noble Lord, Lord Wallace. It will also require foreign companies that own property in the UK to reveal their beneficial ownership, a point made by my noble friend Lord Robathan. As we heard from the Prime Minister on 2 February, we are committed to bringing this legislation forward; however, as I said at the start, there are certain things I cannot pre-empt, so I will not go further, but I assure noble Lords that that is very much on our agenda.

My noble friend Lord Balfe rightly raised various issues concerning people of Russian origin. I say at the outset that we need to be very clear that our argument is not with the Russian people. There are people in our country who are dual nationals—British nationals of Russian origin who are British citizens. Many of them are critics of Mr Putin, and I am sure I speak for every Member of your Lordships’ House when I say that it is completely wrong to in any way put everyone together. This is a clear action by President Putin, and that is what we should be calling out.

The noble Lord, Lord Browne, spoke about the implications for those individuals already mentioned. Of course, we are in the process of freezing assets and imposing travel bans on the individuals already named. He raised a wider point about the impact that our sanctions have had under various regimes. We have sanctioned 81 individuals and entities—for example, those involved in human rights violations. I think sanctions do have an impact. They send a very strong message to different parts of the world—whether in the context of human rights or as we broaden the issue to include corruption and illicit finance—that we are ready to take action, particularly on the assets of people who may be resident here in the UK, or indeed by restricting their travel. This does have an impact.

The noble Lord, Lord Foulkes, raised the issue of members of the Duma and the Federation Council. We are looking closely at those who voted in support of annexing parts of the two republics—the illegal annexation—and I will share information with noble Lords on specific names and institutions as we move forward. The noble Lord, Lord Wallace, asked whether the statutory instruments will apply to the OTs. I can confirm that they will automatically apply to the OTs and Crown dependencies, and we will be co-ordinating with them. The noble Lord knows from our time spent considering the Sanctions and Anti-Money-Laundering Bill the importance of pursuing public registers, as they have all now committed to doing.

The noble Lord, Lord Browne, the noble Baroness, Lady Smith, my noble friend Lord Balfe and others said that action must be co-ordinated in order to be effective. This has become part of my own mantra, as the noble Lord, Lord Collins, knows well: sanctions are only good enough when they are co-ordinated with our partners, and I assure noble Lords that we are working very closely with them. Yes, because of certain legislative extensions and broadening of legislation, there are certain sanctions we have not applied, but we are working very closely with our European partners, the United States, Canada and Australia to ensure that there is co-ordinated activity in this respect, and that international co-operation will remain at the heart of UK sanctions policy. We will continue to work very closely with the EU and other international partners to tackle these shared objectives. I assure the noble Baroness, Lady Smith, that, as I said in answer to a question earlier this morning, I recently discussed this specific point with the German Minister.

The noble Lord, Lord Wallace, asked about the Russia report, to which the Government have published their response. I listened carefully to his concerns, and he is right that we have seen the impact of Russian interference around the world and the cyberattacks that have been generated, to which my noble friend also referred. My noble friend also asked about support to Ukraine. Of course, we are working with them, but to be clear, when I met the Ukrainian Foreign Minister yesterday, as well as the physical intervention—which turned from an incursion into what is now an invasion of the sovereign territory of Ukraine—the issue of disabling all communications in Ukraine and how best we can mitigate such action was very much part of our discussions.

The noble Lords, Lord Foulkes and Lord Collins, and other noble Lords raised the issue of SWIFT and what could be imposed and what that would mean. What I can say at this juncture, without going into detail, is that, simply put, we have not ruled anything out in terms of sanctions. What we are proposing, and certainly what will be heard later, will be a toughening up of our sanctions regime. We are very conscious to identify all those entities and individuals with strong links to the Kremlin.

The issue of disinformation was also mentioned briefly. The Russian Government are—and since the events of last night continue to be—conducting an aggressive set of information operations against Ukraine and, indeed, NATO. It was that particular disinformation that they used as a trigger to launch the invasion into the sovereign republics of Ukraine.

The noble Lord, Lord Cashman, raised an important issue about human rights. He knows how central this is to my own thinking. On Monday, I hope, events prevailing, to be at the Human Rights Council, where I will have various discussions with key partners on what more we can do within the context of the multilateral system. The noble Lord is, of course, right that the issue of human rights within Russia has been a particular challenge. Indeed, my noble friend talked about the opposition within Russia. We do not need to go further than the appalling treatment of Mr Navalny to see how Mr Putin has first suppressed internal opposition and has then moved, as we saw last night, to suppressing democratic progression in other near neighbours.

I assure the noble Lord, Lord Cashman, that we are using our sanctions regime. Indeed, in December 2020, we announced designations of Russian individuals and entities responsible for the torture and murder of members of the LBGT community in Chechnya specifically. In that regard, I thank the noble Lord and the noble Lord, Lord Collins. We have worked very closely on these issues, and they remain very much at the forefront of our mind.

On the broader issue of freedom of religion or belief, we have again seen the appalling suppression of the rights of Jehovah’s Witnesses, for example, in Russia, and we will continue to focus with our international partners on how we can act further in this respect.

I said at the start of this debate that events had overtaken us. Rightly, we need now to look at the here and now. In doing so, what my right honourable friend will detail later today will reflect many—

[Lord Foulkes of Cumnock (Lab Co-op)]

I wonder if the Minister can just deal with the question laid by the noble Baroness, Lady Smith, and me about the Council of Europe.

[Lord Ahmad of Wimbledon (Con)]

I was very much coming to that. I met John Howell and discussed what our approach should be. Again, this was in advance of recent events. As the noble Lord and noble Baroness will know, I regard the Council of Europe as an important way of engaging with those countries which perhaps we would not normally engage with through other institutions. The issue of whether Russia should remain part of it will, of course, be a matter for the Council of Europe. I have noted very carefully what the noble Lord has said in this respect.

One thing that I have always retained from my own experience of diplomacy is the importance of continuing to communicate in some shape or form. What was very clear to me with Russia yesterday at the United Nations was that when the Secretary-General of the United Nations rightly—I am sure noble Lords agree—condemned Russian actions, and this was in advance of what happened last night, even he became the subject of extreme criticism from the Russian representative. That was coming from a P5 member of the Security Council of the United Nations, which was set up to ensure that we address the scourge of aggression and conflict.

Let us not forget in particular the aggression and conflict that took place in Europe. Sitting there in the chamber and listening to what was unfolding in front of us, it was very clear. In my later meeting with the Secretary-General, he again reflected that this was perhaps the biggest challenge he had faced during his tenure, not least because it was being initiated by a permanent member of the UN Security Council, a body that was created to address conflict and sustain peace.

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Equally, I assure noble Lords that as Minister responsible for the FCDO’s business in your Lordships’ House in what is a fast-moving, fluid situation—I have already shared this with the noble Lord, Lord Collins, and it is extended to other Front-Bench spokesmen in this respect—I will continue to engage directly not just in your Lordships’ House but outside the Chamber to ensure that I share the most up-to-date information and the action that has been taken. One thing that is very clear to me from the two sessions we have had thus far in your Lordships’ House is that unity is needed, and unity is what I hope is being heard from this Chamber and from the other Chamber by the Russian people. I also hope that we are providing hope to the Ukrainian people in the current challenges and the conflict and aggression they are facing.

[Lord Foulkes of Cumnock (Lab Co-op)]

I thank the Minister for his, as usual, comprehensive and very helpful response. While I am tempted by the suggestion from the noble Baroness, Lady Smith of Newnham, to press this so that we are ahead of the game, as it were, my head has not been turned by my successful vote earlier this week. In light of the Minister’s very helpful response and the assurances that he gives privately as well as publicly, and the fact we will have the Prime Minister’s Statement repeated at 7 pm this evening and a whole day’s debate tomorrow, I think it will help to express the way in which this House, this country, is united against the Russians if I withdraw my amendment.

Amendment to the Motion withdrawn.