Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations

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.

I am mindful of the fact that, since we left the European Union, we have been particularly dependent on Ukrainian workers, as we were told by my noble friend Lord Benyon in answer to a Question in the House recently. Ukrainian workers make up 75% to 80% of those who pick our local crops of fruit and vegetables. As we near the time of year when that happens, we will have to look at how we can work on the supply chains in this regard. Also, I know for a fact that DFDS carries a lot of supplies between continental Europe and the UK. It is a slightly separate issue, I know, but to what extent might the supply chain be impacted by the fact that we now have this little difficulty with P&O Ferries? I hope that it can be resolved.

Although I welcome the sanctions, I am concerned about whether we will be able to handle and deal with the impact of higher food prices, which we are seeing in the shops. Those of us who live in rural areas are seeing that impact on the cost of deliveries in the cost of diesel, the cost of heating fuel and the other measures that I referred to. However, I wish my noble friend the Minister and the department every speed in hopefully bringing the Russian invasion to a swift conclusion.

On the other hand, the ongoing resilience and bravery of the Ukrainian people, who are sacrificing their lives for the hopes and aspirations of liberty and the freedom to choose their partnerships and alliances—and, indeed, to join the European Union—is literally awesome and inspiring, even in such grim circumstances. We will have consensus in this Committee, but I want to put on the record that I share others’ general revulsion at the Prime Minister making a connection between the Brexit debate in this country and this horrible war. I hope that the Minister will distance himself from such remarks; I do not think I would hear the Minister say that in the Chamber, but it was a jarring moment.