My Lords, I shall speak to the following three statutory instruments, copies of which were laid before this House on 1 and 8 March: first, the Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2022; secondly, the Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022; and. thirdly, the Russia (Sanctions) (EU Exit) (Amendment) (No. 6) Regulations 2022.
The instruments before us were laid under the powers provided by the Sanctions and Anti-Money Laundering Act 2018, also known as the sanctions Act, and came into effect under the “made affirmative” procedure. As part of our wider package of sanctions measures and designations, these new regulations ratchet up the pressure to further isolate Russia, degrade its economy, and starve out Putin’s war machine. We have worked tirelessly with allies across the world in response to Putin’s abhorrent war. Since Russia’s invasion began, the UK has delivered its largest package of sanctions ever imposed.
With your Lordships’ permission, I will tackle each of the three statutory instruments in turn. First, on the maritime statutory instrument, on 1 March the UK was the first country to turn any Russian vessels away from its ports. We introduced new restrictions, barring all ships that are Russian owned, operated, controlled, chartered, registered or flagged, and we did not stop there. These measures provide new powers to direct Russian vessels out of British ports and to detain Russian vessels already in port. These powers offer an important tool for targeting oligarchs and wealthy individuals closely associated with the Putin regime. Finally, anyone connected with Russia can no longer register a vessel and will have any existing
registrations terminated. This strips away the competitive advantage provided by being a member of the UK Ship Register. We are working closely with those in the port sector to support them in upholding the regulations, and we have issued detailed guidance to support those on the ground.
The second statutory instrument—the No. 5 regulations —relates to the Russia central bank. Also on 1 March, we introduced new restrictions that prohibit any individual or entity from providing financial services, relating to foreign exchange reserve and asset management, involving the Central Bank of Russia, the Russian National Wealth Fund, and the Ministry of Finance of the Russian Federation. This action, taken in close co-ordination with the US and the EU, prevents the Russian central bank from deploying its reserves in ways that undermine the impact of sanctions imposed by us and our allies. It undercuts the bank’s ability to make foreign exchange transactions to support the Russian rouble. Alongside the existing raft of financial sanctions, this really locks down the most severe restrictions.
The third and final SI, concerning aviation, space and insurance products, was laid on 8 March. We introduced a new suite of aircraft sanctions and established new government powers to detain Russian aircraft in the UK. We were the first country to ban Russian aircraft from our airspace, on the 25 February. We have now extended this ban, making it a criminal offence for any Russian aircraft to fly or land here. The ban includes any aircraft owned, operated or chartered by anyone connected with Russia, and any individuals operating in UK airspace. The new powers will also allow the Government to remove aircraft belonging to designated Russian individuals from the UK aircraft register. The statutory instrument builds on critical industry trade prohibitions which came into force on 1 March. It will go further by extending the above prohibitions to cover all aviation and space goods, technology and related services, including the provision of insurance and reinsurance services. With similar action taken by our partners, these measures are designed to severely constrain Russia’s commercial air operations and logistics, with consequential impact on its economy.
Noble Lords will wish to be aware that the Government are intending to make some corrections to this SI shortly.
Russia’s assault is reprehensible, unprovoked, premeditated and a barbaric attack on Ukraine and on the very foundation of our societies and the rules by which we coexist. As my right honourable friend the Foreign Secretary has said previously, the UK will continue, as promised, to impose further sanctions against Putin and his regime if he does not change course. We will ratchet up our sanctions until Putin ends this invasion of choice, which represents a clear breach of international law and the UN charter. The UK and our international partners stand united in the face of Russian aggression. Putin has led the Russian people into a quagmire and turned Russia into an international pariah.
It does not stop at Governments. Indeed, we have seen all organisations—from banks to oil companies and from football leagues to singing competitions—make it clear that Putin and his allies must be isolated from the international community for his actions. The UK’s
latest designations, announced on 14 March, mean that the UK’s total number of designated persons, entities and subsidiaries now stands above 1,000. Together with our allies, we are making Putin and his allies pay the price. Our unity demonstrates the strength of opposition against Russian aggression.
We are unwavering in our support for the people of Ukraine. We hold them in our hearts and minds at this terrible moment in their nation’s history. As a free and democratic country, Ukraine has the right to determine its own future, but it is clear that the Russian Government were never serious about engaging in diplomacy. They were only ever focused on their territorial ambitions. The UK and the international community stand against this naked aggression and for freedom, democracy and the sovereignty of nations around the world. Our new and upcoming sanctions regulations and measures will continue to show Putin that his abhorrent war is a massive strategic mistake. I beg to move.