Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure effective enforcement of the UK's financial sanctions regime for UK companies suspected of breaching sanctions on Russian oil.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The action taken by the UK and its Coalition partners to limit Russian energy revenues is having a significant impact, with data from Russia’s Ministry of Finance showing there was a 30% reduction in Russian government tax revenues from oil in 2023 compared to 2022.
HM Treasury’s Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing financial sanctions and the Oil Price Cap. OFSI takes a proactive enforcement approach based on its enhanced intelligence and monitoring capabilities, and is currently undertaking a number of investigations into suspected breaches of the price cap, using powers under the Sanctions and Anti Money Laundering Act (SAMLA) to request information and working closely with our international partners in the G7+ Oil Price Cap Coalition.
Industry compliance is further strengthened through guidance and alerts, for example the compliance and enforcement alert issued in February 2024 on the Oil Price Cap, which highlighted to industry red flags for sanctions evasion.
Enforcement outcomes are never immediate, as complex investigations, including following due process, take time. The length of OFSI’s investigation process is consistent with international standards. OFSI assesses every instance of reported non-compliance and takes action in all cases where it is appropriate to do so. This was demonstrated by OFSI’s penalty against the British company Integral Concierge Services Limited on 27 September, for committing serious breaches of UK sanctions imposed as a result of Russia’s illegal invasion of Ukraine in 2022.
The UK has also taken action directly targeting shadow fleet vessels and entities that seek to undermine UK sanctions and facilitate the trade and transportation of Russian oil and oil products.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what discussions he has had with his (a) G7 and (b) EU counterparts on increasing enforcement of the price cap policy on Russian oil.
Answered by Stephen Doughty - Minister of State (Foreign, Commonwealth and Development Office)
The action taken by the UK and partners to limit Russian energy revenues is having a significant impact, with Russia forced to shoulder a 24 per cent reduction in oil and gas revenues in 2023 compared to 2022. We are working to close loopholes and crack down on ever more desperate forms of sanctions circumvention, including by sanctioning vessels which use reckless practices in an attempt to undermine our impact. The UK has led in the G7 to target oil and LNG tankers, and we will continue to work closely with EU and G7 counterparts to monitor the effectiveness of the Oil Price Cap.
Asked by: Sarah Green (Liberal Democrat - Chesham and Amersham)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential merits of banning imports of oil products from refineries using Russian crude.
Answered by Douglas Alexander - Minister of State (Department for Business and Trade)
The UK has worked closely with international partners to constrain Russian oil revenues while maintaining energy market security. The Government does not speculate on future sanctions measures as to do so could reduce their impact. We continue to monitor the effectiveness of our sanctions.
Asked by: John Glen (Conservative - Salisbury)
Question to the Home Office:
To ask the Secretary of State for the Home Department, whether she has made an assessment of the level of interference in the trade union movement by (a) Russia, (b) North Korea and (c) Iran.
Answered by Dan Jarvis - Minister of State (Home Office)
The Government’s first duty is to protect our national security and keep our country safe. We keep potential threats to the UK under constant review and, where necessary, we use all the tools at our disposal to mitigate these threats.
The UK has a strong record of responding robustly to state threats. Alongside our existing operational response, new legislation has been brought in through the National Security Act 2023 to deal with the range of modern state threats, including foreign interference. The Act includes a Foreign Interference Offence, which contributes to the toolkit available to law enforcement and the intelligence agencies to disrupt foreign interference activity, protect the British public and address the evolving threat to our national security.
As a matter of long-standing policy, the Government does not comment on the detail of matters of national security or on individual cases. This Government is committed to tackling the threat of foreign interference, wherever it originates.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what steps his Department is taking to enhance targeted sanctions against vessels in Russia's shadow fleet; and whether he plans to align his Department's vessel designations with those of the United States.
Answered by Stephen Doughty - Minister of State (Foreign, Commonwealth and Development Office)
Since gaining the power to 'specify' individual vessels in May 2024, the UK has sanctioned 25 tankers transporting Russian oil as part of Putin's shadow fleet; a higher number than that undertaken by partners over the same period. This has disrupted Russia's efforts to undermine our oil sanctions, leaving the majority of these vessels struggling to re-enter the Russian oil trade and intensifying the pressure we have placed on Russian revenues. We have also sanctioned five vessels involved in the Russian LNG sector. We continue to step up our efforts, working closely with partners including the US, to ensure effectiveness and impact.
Asked by: Steve Darling (Liberal Democrat - Torbay)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure UK insurers and other maritime service providers verify compliance with the oil price cap for shipping contracts involving vessels potentially linked to Russia’s shadow fleet.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
HM Treasury’s Office of Financial Sanctions Implementation (OFSI) supports industry in complying with the Oil Price Cap. On 16 February 2024, OFSI issued updated industry guidance (UK Maritime Services Ban and Oil Price Cap Industry Guidance). OFSI also co-authored a joint G7+ Coalition Advisory for the Maritime Oil Industry and Related Sectors, issued 12 October 2023, and a Price Cap Coalition Oil Price Cap Compliance and Enforcement Alert, issued 1 February 2024. Alongside this, OFSI has also published updated Financial Sanctions Guidance for Maritime Shipping, issued 5 March 2024.
From 19 February 2024, the price cap attestation model was updated to require attestations to be shared on a per-voyage basis, as part of a relevant transaction. As well as per-voyage attestations, the new model requires itemised ancillary costs to be recorded and provided to contractual counterparties upon request. These measures were designed to make it easier for good-faith actors to reliably comply with the price cap, through providing greater transparency for UK service providers engaging in the trade and transport of Russian oil.
OFSI takes a proactive enforcement approach and is currently undertaking a number of investigations into suspected breaches of the Oil Price Cap, using powers under SAMLA to request information and working closely with our international partners in the G7+ Coalition.
The UK has also taken action directly targeting shadow fleet vessels and entities that seek to undermine UK sanctions and facilitate the trade and transportation of Russian oil and oil products. Since Russia’s illegal invasion of Ukraine, the Foreign, Commonwealth and Development Office (FCDO) has sanctioned 25 vessels and 18 entities and individuals linked to Russia’s shadow fleet, under its ship specification and designation powers.
Asked by: Alicia Kearns (Conservative - Rutland and Stamford)
Question to the Foreign, Commonwealth & Development Office:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, whether he has had discussions with the Chinese ambassador to the UK on reports that a Russian state owned company has developed a weapons programme in China for military drones.
Answered by Catherine West - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
In my meeting with Chinese Foreign Minister Wang Yi on 26 July 2024, I urged China to prevent its companies supporting Russia's military industrial complex. Such support poses a material threat to international security and prosperity. Officials have also raised this with the Chinese Ambassador. We will continue to make our concerns clear at every opportunity.
The reports the Right Honorable Member references add to a growing body of open-source reports that Chinese companies are enabling Russia's illegal invasion of Ukraine, including through the provision of dual use goods. The supply of military UAVs would be a direct contradiction to statements from China that it would not provide weapons to relevant parties of the conflict.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government what steps the Treasury are taking to regulate higher transparency and due diligence standards in the UK’s maritime services sector to prevent Protection and Indemnity insurers from facilitating the operations of vessels within Russia's shadow fleet.
Answered by Baroness Chapman of Darlington - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
The action the UK and its partners have taken to limit Russian energy revenues is having a significant impact, including reducing Russia's oil and gas revenues by 24 percent in 2023 compared to 2022. It is illegal for UK maritime services including insurers to engage with oil tankers where the oil is traded above a given price. The FCDO regularly engages with maritime service providers including to emphasise that if they facilitate shadow fleet activity they may be in in breach of UK sanctions and could be at risk of enforcement action. The Government is committed to rigorously enforcing our sanctions and keeps all our sanctions under review.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government what steps they are taking to deter third-country service providers from engaging with UK sanctioned vessels in Russia's shadow fleet.
Answered by Baroness Chapman of Darlington - Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
The UK has sanctioned 25 oil tankers operating within Putin's shadow fleet. This has disrupted those vessels' ability to take part in the Russian oil trade. We frequently engage with third countries on the shadow fleet, as these vessels undermine international maritime standards and practices, pose environmental risks, and support Russia's illegal war in Ukraine. While the UK cannot comment on future sanctions, anyone assisting UK-sanctioned vessels and the activity of Russia's shadow fleet more generally may be in breach of our sanctions and be liable in the event of an accident.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what steps they are taking to mitigate the environmental risks posed by ageing and poorly maintained vessels in Russia’s shadow fleet, particularly those using high sulphur fuels in UK territorial waters and the Strait of Dover.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
The UK is working to deter and disrupt the Russian shadow fleet. At the European Political Community Summit in July, we led efforts to ask European partners to sign a Call for Action that seeks to address the risks that the shadow fleet poses to maritime safety and security, and, crucially, the environment.
The Department for Transport takes robust measures to ensure all sea vessels in UK territorial waters, including the Strait of Dover, comply with environmental law.