Sanctions

Neale Hanvey Excerpts

Tuesday 1st March 2022 Commons Chamber

[Michael Ellis]

I am so pleased that my right hon. Friend says that, because that is exactly what we are doing. The greatest expedition is being applied to this matter.

The legislation follows the made affirmative procedure, as set out in section 55(3) of the Sanctions and Anti-Money Laundering Act 2018. I know the hon. Member for Rhondda (Chris Bryant) is familiar with that and supported it strongly in this House both in 2018 and before. The legislation follows the process of that Act, so I have no doubt he will support it. These statutory instruments amend the Russia (Sanctions) (EU Exit) Regulations 2019 and, as my right hon. Friend the Prime Minister announced, the powers they contain will prevent Russian banks from accessing sterling.

This is a significant and new measure for the United Kingdom. Russian banks clear no less than £146 billion of sterling payments into and out of the United Kingdom’s financial system every year. Without the ability to make payments in sterling, designated banks will not be able to pay for trade in sterling. They will not be able to invest in the United Kingdom. They will not be able to access the UK’s financial markets. This measure matches the power the United States already has to prohibit access to the US dollar, and shows our joint resolve with our American allies to remove Russia from the global financial and trade system. Around half of Russian trade is denominated in dollars or sterling.

[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

The objective of sanctions is to limit the escalation of hostilities. I hope we are able to effect that through these measures, but does the Minister not accept that the list exists in some form, as has already been referred to, and the hon. Member for Rhondda (Chris Bryant) has already outlined a remedy? Surely it is not beyond the wit of man for us to come together to make these sanctions work and avert an escalation of hostilities?

[Michael Ellis]

That is what we all want to do. These measures will work; the reality is that they follow the mechanism outlined in the 2018 Act.

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[Bob Seely]

We absolutely should, and the hon. Gentleman makes another really important point. The lawyers go after anything and everybody they can to try to destroy them in any way they can. One of the most awful things I read was that Mishcon de Reya was in the process of financially destroying that Maltese journalist Galizia before she was physically destroyed. How awful is that? How much reputational damage are these people willing to endure for the bonuses they make? We are not talking about these people as individuals or as companies enough. We need to do that more.

[Neale Hanvey]

I have been listening intently to what the hon. Gentleman has said, but surely there must be some remedy and solution. I would be very interested in his view on what practical steps we can take collectively to shut down these loopholes and stop these sharp practices.

[Bob Seely]

There are lots of them; there are too many for me to go into, because I am genuinely trying to wind up my speech, Mr Deputy Speaker. The best way of doing that is to use privilege to get these oligarch names out on the Floor of the House, so that we do not have to worry about being sued for what we say about them and so we can get the sanctions out, rather than have them cart their money off to God knows where. We can cap costs in NCA cases. We also have to get the crime agencies talking much more holistically.

To round up, I seek a public inquiry into what has gone wrong in the past 10 to 15 years, because this system is becoming rotten at so many levels. I am talking about the amount of money; the corruption to some of the standards in the legal firms; and some of the former politicians—on the Opposition side and ours—who are, in effect, the public spokesmen for these people. It is wrong and there is progress to be made. I support these measures but they should be a start, not an end.

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[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

I will give a brief preamble explaining why I support the sanctions. Then I will make three broad points, but I do not intend to take too long. We are all obviously struggling to come to terms with recent events, and tensions across Europe over the war in Ukraine are rising. It is shocking to recall that my own anxiety of nuclear war as a schoolboy in the 1970s and ’80s is now being revisited on our children.

I do not believe that war is ever a justifiable means to resolve a disagreement or an argument. Those who die are ordinary people caught up in the arguments or ambitions of more powerful actors. The perhaps hackneyed expression “jaw, jaw, not war, war” is something that we should always strive for, but when the tanks and shells are raining down on innocent civilians, we must stand against the aggressor. While that is true of events in Ukraine, it is also true of conflict and aggression the world over. I hope that this is a lesson that we all take from the events that are unfolding. Like many I marched against the invasion of Iraq, and my opposition to the case for that conflict stands. From that position of opposition to war, I stand against the ongoing aggression of Mr Putin against the Ukrainian people today. I support the sanctions, as does my party, as a means for de-escalation and preservation of life.

I will make the following key points about how we progress. First, we must acknowledge that President Putin has gone to considerable efforts to sanction-proof his economy, and that London’s reliance on dirty money must not impede international efforts to make such sanctions meaningful. That must be urgently addressed, such as by the mechanisms that were outlined by the hon. Member for Rhondda (Chris Bryant). There needs to be a mechanism, a method, or at least an attempt to disaggregate UK businesses from the banks that are being given a 30-day warning that their assets are under threat. There are also risks regarding cryptocurrencies and Bitcoin, which Mr Putin may use to evade such measures.

Secondly, we urgently need to tackle the impact of such sanctions on ourselves. The UK and Scottish Governments should bring forward, as a matter of urgency, proposals to increase the output of North sea oil and gas, and establish alternative energy opportunities to temper already escalating energy costs and secure supplies to our friends and allies in Europe.

Finally, we must urgently look at all possible means, such as a windfall tax on energy profits, to cushion the blow on the plight of our own people who are suffering the impacts of poverty and a cost of living crisis.

President Zelensky has shown formidable leadership and courage. We must do all we can to support his people, preserve life and bring peace to Ukraine.