Sanctions

Debate between Margaret Hodge and Michael Ellis

Tuesday 1st March 2022 Commons Chamber

[Michael Ellis]

I do not think the individuals involved will consider it a weak measure; on the contrary, I think they will consider it a draconian measure, which is exactly what it is.

[Dame Margaret Hodge (Barking) (Lab)]

I want to return to another point and perhaps help the Minister a little bit, because we want to get at the companies, but we also want to get at the individuals—we need to get at both. We have been lax, and I hope he will accept that across this House we think the Government should take more action on individuals. May I suggest that, rather than going through the lengthy legal due diligence that he says is constraining his ability to act against individuals now, he could use the legislation we have on unexplained wealth orders, where the assets of individuals are impounded and it is up to the individuals to prove that they got them legitimately, rather than our waiting to see whether there is a case? Take the assets away and leave it up to the individuals to demonstrate to us that those are legitimate assets with no connection to Putin.

[Michael Ellis]

I am grateful to the right hon. Lady for mentioning unexplained wealth orders, because that is another thing that this Government have done in order to have the desired effect that she mentions.

In response to the hon. Member for Rhondda, the reason for the 30 days is to have a wind-down on certain measures to allow UK businesses to close their affairs. That is its purpose. It does not enable designated persons to move money within that 30-day window; it is designed to help UK businesses, which will of course also suffer as a result of these measures.

In addition to these two statutory instruments, we are further strengthening our sanctions package by bringing in shipping measures, imminently, and a prohibition on financial services relating to foreign reserves exchange and asset management by the Russian central bank. These will be before the House for consideration soon.

Russia’s aggression against Ukraine is part of a long-term strategy. If we give ground now, or try to accommodate illegitimate Russian concerns, the Russians’ strategy of aggression would not end. We are concerned that they might not stop at Ukraine; instead they might be emboldened. President Putin’s focus would simply potentially move on to the next target. That we cannot have. The UK has therefore been at the forefront of the response in terms of financial aid, aviation measures, lethal aid and sanctions, including on SWIFT.

Acting in concert with our allies, our measures will deliver a devastating blow to Russia’s economy and military for years to come. Co-ordinating with our partners, our sanctions will reverberate through Putin’s regime. We must remain absolutely firm in our response. We must rise to this moment and we must stand with the people of Ukraine. I am determined that we will continue to support them in that choice, and I commend these regulations to the House.