UK Parliament / Open data

Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022

My Lords, I thank all noble Lords for their strong support for the sanctions more broadly and specifically for the measures that we are debating today. I say from the outset that I agree totally with the noble Lord, Lord Fox. Existing laws and processes should be fully leveraged to ensure that those actions that have been taken can be fully applied rather than our just waiting for new legislation to pass. The noble Lord, Lord Austin, and others, pointed to the importance of resourcing. I assure him that it is at the forefront of our thinking, both in the context of the FCDO and across government, including the Home Office.

I am grateful to all noble Lords who have contributed on the specific sanctions before us, but as I expected—it is no surprise to anyone—our discussion this afternoon has gone much wider. I am sure that will be reflective of the upcoming debates both on the legislation and on specific issues relating to the unravelling of the situation in Ukraine.

The noble Lord, Lord McDonald—I nearly said “noble friend”; he was certainly a friend when he was a PUS—will know all too well that I cannot comment on specific designations. Nevertheless, I hear what he says. In this regard, I assure him and all in your Lordships’ House that we are aligning ourselves. Where there are designations which are reflective of partners who may have moved forward more quickly or broadly, we are working closely with them. Questions are often asked about our alignment particularly with the EU. Noble Lords may be aware that my right honourable friend the Foreign Secretary has been invited, along with representatives of the United States, to attend the European Union Foreign Affairs Council to ensure that we are fully aligned in how we move forward, both in the governance structures and in the specific designations. That underlines the challenge that we face but also, importantly, the collaboration and collective response from the Government of the United Kingdom and Governments of key partners, including those within the European Union. My right honourable friend the Foreign Secretary is visiting key partners today as I speak.

The measures that we have taken are already having a significant impact, but I assure noble Lords that I have listened carefully to and made note of their suggestions as to what more we can do in consultation with our allies. As we debate legislation which enables what action we can take, further announcements will be made. The noble Lord, Lord Collins, talked about Belarus. We will debate the specific application of those sanctions in the coming days. We will introduce further sanctions and prohibitions on financial services relating to foreign reserves exchange and asset management by the Russian central bank. These too will be before us in the coming days.

My noble friend Lady McIntosh rightly talked about ensuring humanitarian carve-outs from our sanctions. From our experience in Afghanistan, I have been very minded to ensure that this is part and parcel not just of our thinking but of our processes. My engagement earlier this week in Geneva with key

partners working on the ground, including the various agencies of the UN but also the likes of the ICRC, was focused on the very issue that she highlighted.

The United Kingdom has also said that we will work with our allies in NATO. On Friday, NATO leaders reiterated their commitment to Article 5 in solidarity and support for Ukraine, which many noble Lords mentioned. We will also provide further humanitarian support, which has been announced by my right honourable friend the Prime Minister. The UK has also announced £100 million of new funding to aid efforts to build Ukraine’s resilience and reduce reliance on Russian energy supplies. I listened very carefully to the noble Lord, Lord Austin, about particular assets held and how they are best utilised. Past conflicts have also demonstrated the legal challenges that apply, depending on who owns what assets and the legitimacy of the Government of a given country to have a right to those assets. We can talk of conflicts past, on which we are still trying to unravel some of those issues. I am sure that noble Lords welcome the additional £100 million of new funding from the United Kingdom to build Ukraine’s resilience and reduce reliance on other areas, including energy and security.

My noble and learned friend Lord Garnier rightly highlighted the different groups. Again, that is very much part and parcel of our thinking on how we can target further work and co-ordination with our key partners. I am also minded very much to agree with him on the important issue of Russian disinformation. The Russian Government are conducting an aggressive set of information operations against Ukraine and NATO in a shameful attempt to justify action against Ukraine. I have to say to my noble and learned friend that I think we all take encouragement that the protests against Russia’s actions are not limited to countries outside Russia. We have certainly seen disgraceful scenes today of protests being again put down in St Petersburg by Russian military and security forces, but they show that the Russian people totally despise the actions being taken by President Putin, and we will work to see how we can strengthen our influence through soft power.

Whoever we target under designation criteria will remain subject to a test of appropriateness, as set out under the sanctions Act. I have made this point before: our values and our system acknowledges that we have a robust legal framework to our sanctions, and we will need to consider carefully how sanctioning individuals helps to achieve the purposes of the regime. The whole essence—and I say this as the UK’s Human Rights Minister—is very important to me in the fairness that we apply when we look at such issues. However, equally, we are very much committed as a champion of freedom and democracy to tackle corruption and illicit finance that directly undermine security and democracy. The UK will use our autonomous sanctions and other tools to send the clearest possible message that the UK is not a safe haven for illicit wealth or financial flows, including those from Russia.

The noble Baroness, Lady Kramer, rightly raised the issue of cryptocurrencies, which are not so specific to the current instrument, but crypto-assets are economic resources and are therefore covered by the UK’s financial sanctions. I believe that with the economic crime Bill

and other measures that will be taken there will be broader discussions about that issue. The noble Baroness is totally right that where we identify the so-called loopholes that have been used creatively, to put it that way, by those seeking to avoid particular rules, regulations and sanctions, we need to close them down as quickly as possible, but in conjunction with our partners and allies.

My noble friend Lady Wheatcroft raised the issue of property. My understanding is that properties subject to asset freezes are not directly seized, but they cannot be sold and employees cannot work in those properties. She raised the issue of the 18-month figure, which I think is very much within the provisions of the economic crime Bill that has been introduced. If I may, I shall write detailing the specifics. There are qualifications within that, but she is right to raise the issue. As I say, I am sure that it will come up in the debates we have on the Bill.

My noble and learned friend Lord Garnier also raised the issue of EU comparisons. As I have already said, we are working together closely. Where we are perhaps ahead or behind any of our key partners we are looking to align as quickly as possible on specific steps that we are taking.

On the issue raised by my noble and learned friend Lord Clarke, he may not remember, but I remember as a much younger man listening to one of his speeches in a think tank. We were discussing Iraq at that time. My noble and learned friend articulated very clearly—and his views have come to pass—that an intervention in Iraq would not resolve the conflict, as some of it was embedded in religious differences based on 1,500 years of different perspectives. I agree with him that this is about the long haul. I assure my noble and learned friend that we are absolutely determined that the actions we are taking today will remain robust. The United Kingdom has been playing a leading role in ensuring that as we work with our international partners, particularly those in the European Union, we recognise their challenges and where there are issues, for example with Germany and energy, we make the case powerfully and constructively while recognising that we need to move together.

I say to my noble and learned friend that it will not just be about the resolve of the United Kingdom. This resolve will need to be reflected within the wider international community to ensure we are fully aligned. That is why, in terms of our ministerial engagement, we are speaking extensively with our key partners, not just on a daily basis but on an hourly one. My right honourable friend the Prime Minister, the Foreign Secretary, other Ministers and I are travelling quite extensively. We are taking action, as was shown by the United Nations vote yesterday. We are working with the US, the EU, the G7 and the OSCE. It is good to see how we are working with other key partners and perhaps even with those partners or other countries where we do not see eye to eye and with countries where we have big differences, including China. The fact that China abstained not once but twice—once at the Security Council and then yesterday at the General Assembly—shows that diplomacy and diplomatic efforts are also vital in our response.

I have sought to cover the specifics—

Type
Proceeding contribution
Reference
819 cc1004-6 
Session
2021-22
Chamber / Committee
House of Lords chamber
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