Sanctions Implementation and Enforcement

Wendy Morton Excerpts

Thursday 15th May 2025 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

This is the third time in a week that the Minister and I have met across the Dispatch Box to debate sanctions. Once again, I thank him for advance sight of his statement.

Sanctions are imperative in supporting the rules-based international system and punishing those who breach those rules. The last Conservative Government placed sanctions on Assad and his cruel regime, and helped to lead a co-ordinated approach with our allies on Syria. Britain put in place sanctions on Iran, and worked with the US to reaffirm our shared commitment to opposing those who threatened peace, security and stability in the middle east. In 2021, the UK put in place sanctions, including asset freezes, on Chinese Government officials for gross human rights abuses. Britain led international efforts to sanction Putin and those behind his war machine in response to Russia’s illegal invasion of Ukraine. We put plans in place to set up the office of trade sanctions implementation, which, as the Minister said, was formally established in October. It was set up to bolster our trade sanctions capability, crack down on companies that breach trade sanctions, and co-ordinate across Government to ensure that sanctions are implemented effectively.

At the time, the Minister announced a cross-Government review. We have not yet seen the report, but I wish to press the Minister on a few points. First, what changes are being made to the sanctions implementation and enforcement framework? What role does OTSI play in any changes? The Minister refers to robust action to increase sanctions evasion deterrence, but what specific measures are being considered? He also mentions a new enforcement strategy; when can we expect that to be published? I would welcome clarity on how the new joint sanctions intelligence function fits into our existing intelligence framework. How does he envisage that working with what we are doing with the US and our other Five Eyes partners?

As I am sure the Minister appreciates, thanks to our leaving the European Union, we now have our own sanctions framework. The flexibility to set our own framework and lead the charge with allies and partners cannot be squandered. Does the Minister expect the EU security pact to touch on the independence of our sanctions regime? We should look to build on the strong measures that we have placed on countries and entities. What progress is being made in identifying further sanctions to impose on those already targeted?

Will the Minister give us an assessment of the number of groups and militia operating in Syria? How will he ensure that the relaxation in sanctions benefits the people of Syria? How often will he review the impact of the relaxation of sanctions? Will he commit to putting sanctions on entities and people in Syria if the standards that we expect in relation to protecting rights are not met? Will the Government consider introducing a new bespoke sanctions regime and set of regulations for Syria?

The critical mass of the current UK sanctions on Iran were introduced under the last Conservative Government. Sanctions form one part of the approach to tackling Iran, but what is the Minister’s broader strategy on Iran?

When we were in government, we imposed the largest and most severe set of sanctions that Russia had ever seen. The economic pressure that we have collectively imposed with the international community has crippled the Russian economy and deprived Putin of $400 billion that could have funded his illegal war. We cannot afford to let up on exerting that pressure on Putin’s war machine. Part of that includes tackling Russian assets. What consideration has the Minister given to deploying assets from the sale of Chelsea football club to support Ukraine? Will he confirm a timeframe for deploying that money?

I would welcome clarity on what information is coming forward to the Minister about potential sanctions breaches and loopholes that are being exploited. Does the review sufficiently plug the gaps that have been identified? Will he update us on what action he is taking against any third party countries that are supporting the countries and entities we have already sanctioned?

Finally, how does the Minister plan to deepen our international co-ordination? What discussions have the Government had with the United States? Did the Government have advance knowledge of yesterday’s announcement? Will it have a bearing on UK policy on sanctions on Syria? Sanctions are a crucial tool in our diplomatic arsenal. We must ensure that they operate as effectively as possible to ensure that international norms are adhered to.

[Stephen Doughty]

I thank the shadow Minister for her broad welcome for this work. I will do my best to answer as many of her questions as I can.

The shadow Minister asked me about the overall review. As I said, it is being published now and she can peruse that when she can; I encourage other hon. Members to look at that as well. We welcome feedback and suggestions on it. To summarise a couple of the key themes, we recognise that different sectors are at different levels of maturity with sanctions, and that Government communications and engagement need to reflect that. Some areas need more assistance; there is a lot of will, but they need support. Some of the measures can be very technical and we want to ensure that businesses can comply. Direct engagement between Government and industry is important, as that has the highest impact on compliance.

We need to bring together our efforts so that they are understood. A range of different agencies are doing important and distinct work, but that needs to be understood by the layperson. We need to improve our guidance and ensure we bridge any gaps in unclear regulations. We need to ensure that people understand the consequences of breaching sanctions, as well as the options. If they voluntarily disclose measures, as a number of businesses and others have done, there are ways forward.

The shadow Minister asked me about intelligence and co-operation with other countries, which is crucial. We will explore how that intelligence function works, but I can assure her that there is already a huge amount of co-operation between us and key partners, including in the United States, the EU and elsewhere. Cross-Government co-operation is also important. Our officials work incredibly hard and I pay tribute to the incredible team in the sanctions unit at the Foreign, Commonwealth and Development Office, and in other Departments, because they do remarkable work.

The shadow Minister asked specifically about co-operation with the EU. It is important that we co-operate with the EU on sanctions, as we do already. That is being considered, along with a range of measures, as we approach the important summit next week. I assure her that our sanctions policy remains our own, but we can often have maximum effect when we work in co-ordination with others. The EU is progressing its own packages against Russia and others.

On third country circumvention, I have paid particular attention to that issue; indeed, I had meetings just this morning to raise concerns on that specific issue with a partner country. Such meetings are a feature of pretty much every week, and we are bearing down on all the routes that might support measures that undermine our sanctions. On the sale of Chelsea football club, we are determined to see the proceeds reach humanitarian causes in Ukraine as soon as possible, and we are doing everything we can to bring that about quickly, but this is a complex legal issue. The UK is working with international partners, has engaged with Abramovich’s team and is exploring all options to ensure that the proceeds reach vulnerable people in Ukraine who are most in need.

On Syria, the shadow Minister knows that we updated the regime this week, and we remain with those sanctions against the Assad regime, but we have removed restrictions on others. We reserve the right to introduce new sanctions in future circumstances on any regime, but we will keep the situation there under close review and respond to the changing circumstances. We will judge the new Government by their actions.

On Iran, we announced on 14 April further sanctions to tackle the domestic threat posed by the Iranian regime by sanctioning the Iranian-backed, Sweden-based Foxtrot criminal network and its leader, Rawa Majid, for their role in attacks against targets across Europe. We took very firm action in relation to the supply of ballistic missiles to Russia for use in the illegal war in Ukraine. We remain determined that Iran must never develop a nuclear weapon, and we are committed to using all tools available to ensure that, including using the UN sanctions snapback mechanism if necessary.

Lastly, the shadow Minister asked about enforcement, how we are having an impact and what difference is being made. I have already given some examples, but another example is that in April, the National Crime Agency secured the first criminal convictions for the breaches of Russian sanctions. Dmitry Ovsyannikov was found guilty of circumventing sanctions regulations and money laundering after receiving £76,000 from his wife and a new Mercedes from his brother, who was also found guilty of circumventing sanctions regulations. They were sentenced to 40 months imprisonment and 15 months imprisonment suspended for 15 months respectively, so the right hon. Lady can be absolutely assured that all the appropriate authorities are acting.

These investigations are often complex and necessarily are not made public. I urge the House to bear with some of our excellent teams in different agencies as they seek to enforce on these regimes.