Brexit: Sanctions Policy (European Union Committee Report)

Lord Risby Excerpts

Thursday 3rd May 2018 Lords Chamber

[Lord Risby (Con)]

My Lords, first, I warmly thank my noble friend Lady Verma for introducing this discussion and so ably chairing our committee. I thank also the committee clerks, who did a magnificent job in bringing this report to fruition.

Whatever our view is of Brexit, all of us wish our country to have a standing in the world for a multiplicity of very good reasons. At the heart of that are our own important values. In the past few decades we have seen those values exported and, in varying degrees all over the world, actually adopted. That is largely due to our working in co-operation with like-minded countries. Overall, the adoption of more democratic values has been gratifyingly successful, but of course there remain countries that do not respect human rights or wish to undermine the advances towards greater democracy that we cherish, or that threaten peace and stability outside their borders.

Sanctions have been a most useful tool in reining in aggression and actually changing behaviour. At the moment, for example, we may see this process under way in the Korean peninsula—we certainly hope so. A more aggressive sanctions regime against Russia is perhaps partly why the recent missile attacks into Syria, and the appalling Skripal incident, have not resulted in some of the threatened retaliation from Russia. Targeted sanctions on individual Russians seem to be proving efficacious as we put into legislation anti-money laundering activities with a new sanctions policy in our country framework outside the EU. But during the course of our inquiry what emerged was the desirability—the absolute necessity—to find formulae for continuing to have the closest common position on sanctions with our European neighbours.

This country implements more than 30 sanctions regimes targeting both countries and violent and often fanatical groups within countries. The response may be asset freezes, travel bans, or financial or trade restrictions. It is clear that, with the experience of hindsight, while these punitive measures may arise from UN Security Council resolutions, many arise from decisions of the European Union as well. That is at the heart of what the committee’s report was all about. Apart from anything else, as we have heard already this morning, Russia has wielded its veto in the UN Security Council with no hesitation when it perceives that its own interests are being undermined. We know that, historically, it is a country that is hugely sensitive about defining and defending its own perceived interests.

What emerged in the comments of experts interviewed by the EU External Affairs Sub-Committee was a loud and clear message that the words “efficacious” and “cross-national co-ordination” were inextricably linked, and that successful multilateral action for the United Kingdom immeasurably enhanced our capacity and desire to achieve results. Indeed, the majority of UK sanctions are linked with EU sanctions as well.

I very much welcome the Government’s commitment to maintain the highest level of co-operation and co-ordination with the EU after we leave, not least because that puts us at an advantage in helping to align sanctions activity with other countries and most notably collectively with the United States, and because London remains pre-eminent—head and shoulders above in importance—over other European financial centres. In practice, it would be unlikely that we would wish to differ from EU decisions in sanctions policy even if we had no formal role, and particularly if the EU had been in direct contact with the United States—a pattern that is well developed—when drawing up a common sanctions position. So my question for my noble friend is, in building the Government’s intention to have a tailored Brexit arrangement, can he share the Government’s thoughts more explicitly on what that means? Will the Government suggest for the future a formal body to be constructed to deal with a sanctions matter? Indeed, when we enter the transitional period after finally leaving the EU, does my noble friend expect such a structure to be in place?

As a country, we have unique attributes much valued by other EU members, most notably our defence and intelligence capabilities. When the Prime Minister indicated that future co-operation in these areas would be unconditional, it was hugely appreciated.

We continue to have a remarkable global reach and much admired soft power, but the clock ticks on inexorably. In this most important area of our national life, our willingness to confront those who undertake unacceptable actions is greatly valued by EU members. Important decisions in our national interest need to be taken now. Integral to this, with our shared common values, is for us to start outlining the structures needed post Brexit to maintain those important links and deal with rogue states, targeting our like-minded European neighbours to work closely with us. We need to deal with these rogue states and individuals—criminal and terrorist—in a collective manner. I hope that my noble friend will be able to put more flesh on the bones of this endeavour, particularly in respect of sanctions in our mutual interest.