Sanctions

Robert Jenrick Excerpts

Tuesday 22nd February 2022 Commons Chamber

[James Cleverly]

I have a huge amount of respect for the hon. Gentleman, as he knows—we speak when the cameras are not rolling—but I fear he is putting his prejudice ahead of the statement I am making, because were he to listen to the points I am making and allow me to get to the point in the speech where I am explicit about this, he would understand that the UK Government’s actions are not limited to what the Prime Minister has currently announced. He will hear that we are going to bring forward further legislation to further extend the measures available to us and that we are absolutely not ignoring the fact that there has already been Russian incursion into Ukraine, which we want to halt and reverse and then get those troops away from the Ukrainian border.

[Robert Jenrick (Newark) (Con)]

The Minister is being very generous in giving way. May I press him on this point? Many of us feel the package of sanctions announced today is comparatively modest. Is the Government strategy that further sanctions will come forward in the days ahead even if Vladimir Putin takes no further steps and acts of aggression against Ukraine, or is it that the further steps that are undoubtedly being planned by the Minister and colleagues within Government will come forward only should there be an additional ratchet in the level of aggression shown towards Ukraine?

[James Cleverly]

I thank my right hon. Friend for giving me the opportunity to make clear our position. If this has not become clear to the House, let me make it clear now: we intend to escalate these sanctions—to ratchet up these sanctions—in response to what has already happened in order to deter further aggression and in order to stimulate Putin to withdraw the troops from Ukraine, take them away from the border and send them back home to their families and barracks in other parts of Russia.

--- Later in debate ---

[Robert Jenrick]

Will my right hon. Friend give way on that point?

[James Cleverly]

I have got to progress. I will be crucified otherwise.

In addition, over the forthcoming weeks, we will extend the territorial sanctions imposed in response to the Crimean incursion by Russia to territory occupied by Russian forces in what they claim to be the breakaway republics of Donetsk and Luhansk. No UK individual or business—no UK individual or business—will be able to deal with them until they are returned fully to Ukrainian control. We also intend to sanction the members of the Russian Duma and the Federation Council who voted for recognition of the independence of Donetsk and Luhansk, in flagrant violation of Ukraine’s territorial sovereignty.

--- Later in debate ---

[Robert Jenrick (Newark) (Con)]

Thank you, Madam Deputy Speaker. The virtue of speaking late in the debate is that I can keep my remarks mercifully short.

I would like to associate myself with the many excellent and eloquent speeches we have heard, most of which I agree with almost entirely. Today is a sad day—a sad day most of all for the brave people of Ukraine, whose sovereignty is threatened and whose democracy and freedom are undermined. It is a sad day for the order we have known since the 1990s, which many right hon. and hon. Members have spoken of, which now seems shattered, damaged and diminished. It is also a sad day for the people of Russia. I am pleased to associate myself with the remarks of the many right hon. and hon. Members across the House who have said that we wish no ill on them and that we are sad to see the state of their country now. Twenty years ago, I lived and worked in Russia as a lawyer. Back then, Russia was by no means a democracy of the kind that we would recognise, but it was a more hopeful place than the Russia that we see today. It was a country in which one could do business and travel and in which young people were broadly optimistic about the future. After listening to President Putin’s remarks last night, I think we see a very different country, drifting darkly into authoritarianism.

I want to speak about two points and to reiterate those that Members across the House have made. The first is about understanding exactly what the Government’s strategy is today. The Prime Minister spoke of a ratchet. If we are going to take action, we should take action hard now. That is what a dictator such as Putin can understand. Deterrence by way of sanctions thus far has failed. It is probably likely to fail. It does have value, however: it shows resolve and inflicts cost on Russia. If we are going to do that, why would we not do it strongly now?

I do not understand why we would suggest that we will introduce the other measures that the Government are considering only in the event that Russia makes further incursions into Ukraine or makes further serious, egregious assaults on Ukraine or other allies in the region—[Interruption.] My right hon. Friend the Minister shakes his head. If, as I understand it, the Government will introduce those measures in the hours and days to come, perhaps because they require further thought or legislation or because we want to act in concert with our allies—for example, to make sure that the sanctions are synced exactly with those that the United States might bring forward—that is an entirely sensible and defensible policy.

[Sir Robert Buckland (South Swindon) (Con)]

I am listening with great care to my right hon. Friend’s important contribution. Does he agree that we could go even further and, with international action, impose positive obligations on Russia to withdraw from the regions in question, stating that, otherwise, further sanctions would follow? Would that not seize back the initiative in a positive way rather than passively waiting for things to happen?

[Robert Jenrick]

My right hon. and learned Friend’s point has a lot to commend it. I suggest to the Government that they introduce further measures as quickly as possible, preferably in concert with our allies.

[Bob Stewart (Beckenham) (Con)]

My real worry is that Putin has actually been very clever: he has advanced into an area that his forces effectively control already and he will stop there. That would divide our allies—for example, Hungary and Germany may not agree—and we would not be able to get sanctions agreed internationally. That is the real worry and why he is not perhaps as mad as we think. He is actually doing this with purpose and he has a plan.

[Robert Jenrick]

My right hon. Friend makes a good point. If the scenario that plays out is the first of the ones that I described, there will be little opportunity to introduce further sanctions, because this may be all that Putin intends to do.

I want to make a last point on the specifics of the package that was announced, and I am afraid that I will repeat the comments of right hon. and hon. Members across the House. The banks that have been chosen are relatively minor. I worked as a corporate lawyer, including in Russia, and these are not the primary banks that international institutions, major corporations or the major oligarchs go to to seek finance, so the impact will be relatively limited. I have not seen the latest debates from the United States, but when I last looked at them, our colleagues and friends in the US Senate, for example, were looking at pursuing some of the larger banks such as SberBank. If we were going to make any impact, it would be important to bring forward measures against one, two or more of the larger banks, which are genuinely those that major institutions and the oligarchs whose names have been mentioned in this House today are more likely to use for finance.

Secondly, the list of individuals is very small, and the lion’s share of them have already been sanctioned for a long time by the United States. There are many others we could reach. In my work as a lawyer and in business, as managing director of Christie’s, I had the pleasure—if we can call it that—of meeting a number of the individuals who have been described today as oligarchs. Those individuals are not on the list. There is a much larger group of individuals we could and should now be reaching, and we could tackle them in a range of ways. In many respects, what they most fear is losing the ability to travel—to leave Russia and go skiing in France or Switzerland or shopping in London or Paris. It does not have to be a full sanction, but the list that we are currently considering is far too small.

If we were sitting in the same room as the Russian leadership today, I think we would see a very nonplussed reaction. There is more we can and should do. I hope that further measures will be brought forward in the coming days; I certainly stand ready, as I think all colleagues across the House do, to support them.