Sanctions

Debate between Stephen Doughty and David Davis

Tuesday 1st March 2022 Commons Chamber

[Stephen Doughty]

The hon. Lady makes an important point. The Minister can be assured of our co-operation in getting these measures through quickly. He has already heard some suggestions for ways in which we might name individuals more quickly; I hope we will hear back from him about them.

We believe that we need to go further to widen financial and banking sectoral measures beyond Sberbank. My second question is about whether the Minister can explain why measures on corresponding banks have not been applied to all Russian financial institutions today, rather than just to Sberbank. Indeed, we understand that the measures have been expanded to include sovereign debt. The Opposition have called for that to apply to UK subsidiaries of entities as well. Will the Minister confirm the position?

[Mr Davis]

I am going to pose a question for which I seek an actual answer—an unusual thing in this House. The Minister spoke about the problem of speed and co-ordination, and indeed the question of which banks were excluded from this process, which strikes me as a key issue.

These financial measures are like a hand grenade—a weapon that can kill or do damage to both sides: they will undoubtedly do damage to Germany, they will do some damage to us, and so on. We must seek financial weapons that do much more harm to the other side than to us because we may keep this up for years, and if we are to maintain support behind it we need to design it in that way. The Minister did not answer in those terms when I asked him the question, so I am interested to know whether the Opposition spokesman can.

[Stephen Doughty]

It will clearly be necessary for us to propose and potentially impose measures for quite some time—for a number of years, according to the explanatory notes—and we have agreed to work with the Government on that. Obviously, as I have said, we hope that they are acting robustly, deeply and broadly now. It is crucial to send a very strong signal, not least given what we have seen. I certainly hope that Russia turns around and ends this illegal invasion, but at the moment we have to send that very strong signal.

Thirdly, there are some exemptions in the legislation, and it is not clear on the surface why they apply. For example, there is an exemption for correspondent clearing services relating to aviation assets. Can the Minister explain the reasoning behind that? There are other exemptions that clearly make sense, relating to humanitarian affairs and extraordinary circumstances, and I can understand why they are there, but can the Minister provide a fuller explanation?

Fourthly, the Government have previously referred to an intention to limit the deposits that can be made by Russian nationals. Do they still intend to introduce such a measure, which is not part of the package that we are discussing today?

Fifthly, we think that there are additional things that the Government could do. For example, the US immediately introduced a ban on all imports from Donbas regions controlled by Russia. Have the Government considered that? We have also proposed a ban on the export of luxury goods, comparable with what has been in place against Syria. If that were undertaken with our partners and allies, it could have a major effect in putting

the squeeze on those around Putin who enjoy their luxury lifestyles.