Russia (Sanctions) (EU Exit) (Amendment) (No. 15) Regulations 2022

Stella Creasy Excerpts

Monday 14th November 2022 General Committees

[Stella Creasy (Walthamstow) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship this afternoon, Mr McCabe. I rise to speak in support of the comments made by my Front-Bench colleague, my hon. Friend the Member for Hornsey and Wood Green, on the importance of addressing the gaps that might exist.

These measures are welcomed across the House; there is strong support for sanctions against Russia and for cracking down on what had previously been a stain on our international reputation. The challenge for all of us is in the gaps that many companies and entities use to undermine the sanctions. I am struck by the fact that the Minister talked strongly about things we could do in the UK. She will have heard my colleague on the Front Bench talk about the Crown dependencies, where many of the cracks and fissures in the sanctions regime can be found, and it is important that we see action taken. It is in the secrecy of ownership in the Crown dependencies that the Russians have found the friends that they do not find among ourselves and other nations on the world stage.

It is worth looking at just how big those gaps are. A piece of work by Transparency International last year discovered 237 large-scale corruption and money laundering cases that involved six out of the 14 UK overseas territories—countries in which we have direct control and influence. That amounted to £250 billion-worth of funds diverted from some of the world’s poorest people to these entities by around 1,200 different company measures. Many of the cases involved former Soviet states, so we know the connection to what we are talking about today.

My hon. Friend set out some strong questions, and I will add to them. What conversations has the Minister had with the overseas territories about this SI and about the need for a comprehensive designation of all these companies so that there is nowhere to hide money in the way in which we see right now, which undermines the sanctions regime that we are all trying to strengthen? What progress has been made on public company registers in those Crown territories?

We all want to see a speedy end to the conflict in Ukraine. We stand firmly with President Zelensky, but we cannot do that if we turn a blind eye to the gaps in our current legislation that allow companies to flourish and money to be diverted. I know the Minister shares that concern, but we need to set out on the record what we are going to do about it. If she wants to find cross-party agreement on the need to go further, faster in closing those gaps, she will find it in this place.