Sanctions: Russia

Richard Foord Excerpts

Monday 9th September 2024 Commons Chamber

[Richard Foord (Honiton and Sidmouth) (LD)]

Given that this change to the law seeks to tighten economic and trade restrictions on Russia, the Liberal Democrats support this statutory instrument, which has been carried on from the work of the previous Government. However, if we step back from the detail of what this SI seeks to do, it is worth looking at some of the context in which it has been tabled. Proceeds from oil and gas sales within Russia’s federal budget rose by 41% in the first half of 2024. That is partly accounted for by the fact that oil prices have gone up and the rouble has become weaker, but we cannot get away from the fact that Russia is profiting from its oil and gas sales in a way that was not the case a year ago, and is getting far greater proceeds from the sale of its oil and gas.

That matters, of course, because Russia is using that money for its grossly illegal aggression in Ukraine. It is thought that those oil and gas sales account for between a third and a half of the total Russian federal budget, so we have to ask how that is happening. Yes, it is partly happening via Russian ships that are part of this so-called shadow fleet, and it is welcome that the SI will prohibit those ships from entering a port in the UK. It is welcome that those ships can be detained in the UK and will be refused permission to appear on the UK’s ship register, but the hon. Member for Strangford (Jim Shannon) is exactly right: we also have to think about what other countries than the UK are doing. According to the Financial Times, the oil trade between India and Russia almost doubled to $65 billion in 2023. India imported very little crude oil before the invasion of Ukraine; now it is the No. 2 importer of Russian oil, after China. It is alleged that India has been refining Russian crude and re-exporting it to European nations that are otherwise seen as subject to, and complying with, our sanctions regime.

It was also interesting to hear from the hon. Member for Glasgow South (Gordon McKee) about the use of dual-use technology. It is true that Russia is seeking to become increasingly self-sufficient, while it also looks to China and India to import technology in the fields of artificial intelligence, space technology and energy technology. Earlier this year, we saw the former Russian Deputy Prime Minister Andrey Belousov, previously Minister for the Economy, become the principal Minister for Defence. We now need to move to the next stage: when we think about dual-use goods, we need to think about how to make sure we can throttle the Russian economy so that it is not importing goods that can be used for aggression in Ukraine.

[Madam Deputy Speaker (Caroline Nokes)]

I call Josh Simons to make his maiden speech.