Sanctions Implementation and Enforcement
Debate between Wendy Morton and Stephen Doughty(2 weeks, 6 days ago)
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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.
Oral Answers to Questions
Debate between Wendy Morton and Stephen Doughty(2 months ago)
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Wendy Morton (Aldridge-Brownhills) (Con)
It is very clear from Ministers’ answers that we still have no indication about which programmes and where will be affected by the planned reductions to ODA and from when exactly the cuts will be effective. We are told to wait for the spending review, but many organisations, including those tackling infectious diseases, are left to face uncertainty and to work at risk. Will the Minister tell us what instructions have been issued to his Department’s humanitarian aid programmes about what they are expected to do between now and the spending review in June?
Stephen Doughty
We clearly have difficult decisions to make, but the FCDO is not pausing all ODA programming and not creating a cliff edge in this year. We are focusing on ensuring that every pound will be spent in the most impactful way in the new context. That is a very difficult decision, as the Prime Minister, the Foreign Secretary and I have set out. We will set out the details in due course, but we are listening closely to Members in this House and, indeed, to the many partners and stakeholders we work with on these important issues.
Oral Answers to Questions
Debate between Wendy Morton and Stephen Doughty(3 months, 1 week ago)
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Wendy Morton (Aldridge-Brownhills) (Con)
The UK can be proud of the leadership it has shown in supporting Ukraine and rallying our international partners around this cause. What work is the Minister leading, with European allies, on unfreezing sanctioned assets, so that they can be used to equip Ukraine, and what is his timeframe for releasing critical sanctioned funds, so that they can be used to strengthen Europe’s defence of our values, security and defence?
Stephen Doughty
As the right hon. Lady knows, we have already done important work with European partners to secure the extraordinary revenue acceleration loan, which will make a tangible difference to Ukraine. We continue to work with European partners on sanctions, and of course, we are considering all lawful options going forward. We have had important discussions in the Weimar group and through the G7, and will continue to look, with European counterparts, at all options for supporting Ukraine.
UK-US Bilateral Relationship
Debate between Wendy Morton and Stephen Doughty(4 months ago)
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The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
It is good to see you in the Chair, Sir John. I know you are also a strong supporter of the UK-US relationship. I thank all right hon. and hon. Members for their contributions, particularly the hon. Member for Dumfries and Galloway (John Cooper). I also extend my heartfelt condolences to the families of those who lost their lives in the tragic accidents in Washington DC and Pennsylvania in recent days. Our thoughts are with the American people and the people of those cities at this time. I also pay tribute to the emergency services for their dedicated work in such challenging conditions, as we saw after the terrible attacks in Las Vegas and New Orleans, and in the terrible forest fires in Los Angeles.
I am grateful to the hon. Member for securing the debate, and for his work on the Business and Trade Committee. He will not be surprised to hear that I did not agree with all his comments, but there are some areas of agreement. I certainly agree with his characterisation of the very balanced trading relationship that we have with the United States; that point was also made by other Members on both sides of the House. I agree about some of the global threats that we must work on together, and about the fundamental values that bind us together in relation to defence, security and liberty. I gently say to him that there are no “toadying diplomats”; they are motivated by a great degree of duty and service, exemplified by Dame Karen Pierce, who will be retiring shortly from her role. I would take issue with him on that.
The partnership between the United Kingdom and the United States is strong and historic, and it is understandably of huge interest to Members of this House and the wider public. We have heard reference to the important role that BAPG and others play; many individual parliamentarians’ links and histories are crucial to the relationship.
We will always do what is right for the British people, and a crucial part of that is a strong United Kingdom-US relationship. My hon. Friend the Member for Birmingham Edgbaston (Preet Kaur Gill) made powerful comments on that point. Our US links have a powerful role to play in delivering on many UK missions: ensuring long-term peace and security in the middle east, Europe and the Indo-Pacific; growing the economy in both our countries; delivering on security for our citizens; and propelling the tech revolution to achieve a sustainable and prosperous future for us all—to name just a few. This is a timely and important debate, and I am grateful for the many contributions. I will try my best to respond to them all.
We all recognise the extraordinary mandate that President Trump received from the American people in November. It was truly historic, as rightly emphasised by my hon. Friend the Member for Mansfield (Steve Yemm). My hon. Friend was also right to talk about the challenges faced by the American people—indeed, his own constituents —in relation to growth in the economy, a matter that we are resolute in attempting to address as a Government. We see that election as an opportunity to engage with the United States with a renewed sense of energy, dynamism and purpose, and we have been forthright in extending our congratulations to President Trump on his victory. Indeed, the Prime Minister and the Foreign Secretary have reiterated their commitment to working closely with him and his Administration.
The Prime Minister spoke to the President on 26 January, and the warmth of their discussion demonstrated that the friendship between our countries is not restricted to any one political party or tradition; our relationship transcends them, as several hon. Members have rightly said. The Foreign Secretary, similarly, was delighted to speak to Secretary of State Marco Rubio on 27 January, and they expressed their eagerness to commence work together to address our many shared challenges, including the situation in the middle east, Russia’s illegal war in Ukraine and the challenges posed by China. I pay tribute to President Trump’s work on securing the ceasefire and the release of hostages, which was referred to in the debate.
Stephen Doughty
I will make some progress. I will try to come back to the right hon. Lady if I have time at the end, but a lot of points were made.
The Foreign Secretary and Secretary of State Marco Rubio also reaffirmed our enduring commitment to the AUKUS partnership. Many Opposition Members rightly referred to the depth of our defence relationship, including the hon. Member for Spelthorne (Lincoln Jopp), who did so very aptly and whom I thank for his service. The depth of that relationship remains an essential pillar of our collective security.
In an increasingly unstable world, we agree that NATO should be strengthened and defence spending increased to adapt to new threats, which is why the Prime Minister has underlined our cast-iron commitment to spend 2.5% of GDP on defence. The UK looks forward to working with President Trump to ensure that our NATO alliance keeps Americans and Europeans safe, including in regions such as the Arctic. We will not tolerate attempts to disrupt critical infrastructure or restrict freedom of navigation by our adversaries. There is no global security without Arctic security. Alongside our closest allies, we are ready to support security in that region. That is one of the reasons I recently travelled there for the Arctic Circle Assembly.
Equally, as has been rightly mentioned, including by the shadow Minister, the right hon. Member for Aldridge-Brownhills (Wendy Morton), our support for Ukraine is iron-clad. When the Prime Minister was in Kyiv last month, he saw at first hand the unrelenting aggression from Russia that Ukrainians face every day. As the PM said, the US has played a vital role alongside allies in supporting Ukraine. Our collective stance should be to help Ukraine to be in the strongest possible position in the months to come. I thank the shadow Minister and other right hon. and hon. Members for their support and comments on that.
A number of hon. Members have mentioned the British Indian Ocean Territory and I know many feel strongly about it. I advise them to take much of the reporting on that, especially regarding the finances, with a large pinch of salt. I will repeat what I have said in the House: the Government inherited a situation where the long-term future of the UK-US military base on Diego Garcia, which is so vital to UK and US security, was under threat. Finalising a deal means we can secure that base with strong protections, including from malign influence, that will allow the base to operate unchanged well into the next century. In close collaboration with the US—it is right that we give it time to consider—we will only agree to a deal that is in the UK’s best interests and those of our allies, and that protects our collective national security.
Stephen Doughty
I have answered many questions on Chagos. I am going to make progress, because I am conscious of the time.
Since taking office, the UK Government have shown strong international leadership on climate, and a steadfast commitment to the sustainable development goals. We remain committed to an impactful and reformed WHO. However, global issues require collective action, which is why the UK will continue to work with partners, including the US, our closest ally, to advance shared goals.
A lot of comments today rightly focused on the strength of our economic and trading partnership, which is a crucial pillar of our relationship. Strengthening that partnership with the US is a core component of the Government’s growth mission. We only have to reflect on Robert Lighthizer’s past statement that the Anglo-American trade relationship
“may be the healthiest…in the world”—
almost a decade later, the same can be said today.
Crucially, as has been said, I emphasise that we have a fair and balanced trading relationship that benefits both sides of the Atlantic. That relationship is worth more than £300 billion a year—nearly a fifth of all UK trade. We have more than a £1 trillion invested in each other’s economies, and more than 1 million Americans work for UK-owned businesses, and the same the other way. Those relationships go far beyond London and Washington DC. We heard about the important relationship with Scotland and Scotch whisky, as outlined by the hon. Member for Dumfries and Galloway, who sponsored the debate. There are strong ties in my own community in Wales. We also heard about the strong ties with Northern Ireland.
From US defence manufacturing in Bedfordshire to the close to 50,000 jobs supported by UK companies in Vice-President Vance’s home state of Ohio, the US is an extraordinarily dynamic economy with a huge amount of potential for the UK. Our countries share a determination to drive economic growth, which is the UK Government’s core aim. We are committed to open and free trade, and its crucial role in delivering economic growth.
Although we might have a different philosophical approach to tariffs, we will continue to seize opportunities to boost trade with the US in a way that promotes growth, creates jobs and aligns with the UK’s national interests. Indeed, we seek to strengthen relationships at all levels of the US economy, including with cities and states. I have had the pleasure of meeting many governors and lieutenant governors over the past few months to discuss that.
We are not going to choose between our allies, as the Prime Minister has said. It is not a case of either America or Europe. That is apparently my own family history, which I will come to later. We are inexorably bound together and face the same global threats and challenges. We have a strong will to overcome those together. Our national interest demands that we work with both, which is exactly what we will do.
I cannot end without reflecting on the vibrant links between the peoples of the United States and the United Kingdom. I am particularly proud, in that regard, of my own family ties to the United States, including my American grandfather, Harold, who fought in Europe in world war two. He came over from the Bronx in New York, in that strong tradition of service and duty that binds our two peoples together, including in the armed forces. My family history goes back to Pennsylvania in the 1700s, and I have many ties across the United States. I have visited 25 of the United States in my life, and counting. I am honoured to be the Minister with the responsibility for those relationships. As I said, those relationships exist across all of the United States and all parts of the United Kingdom of Great Britain and Northern Ireland.
I am looking forward to marking the 250th anniversary of US independence next year, as well as the FIFA world cup, which will be hosted by Canada, Mexico and the US, not to mention the LA Olympics in 2028. Speaking of sports, the hon. Member for Dumfries and Galloway is, as he said, well aware of President Trump’s deep affection for Scotland, with his mother having been born on the Isle of Lewis and with his golf resort Trump Turnberry. I have some family history in Kirkcudbrightshire in Scotland, and I studied at the University of St Andrews, another key Scottish golfing location.
The President’s deep affection for our country and all its parts, as well as for our royal family, is well understood. We really welcome that affection and those special ties, which are another side of our special relationship. We also have incredible educational ties, including through the Marshall scholarship programme. I have met many of the Marshall scholars. We count a CIA director, five US ambassadors, two members of Congress, six Pulitzer prize winners, a NASA astronaut and a Nobel laureate among our Marshall alumni.