Russia (Sanctions) (EU Exit) (Amendment) (No. 7) Regulations 2022

The third and final power is that of designation by description. As the Government sharpen their measures against Mr Putin and his regime, this power enables us to designate groups of individuals and entities. The economic crime Act removed some of the constraints on the Government’s power to designate by description, offering the Government maximum flexibility in designating persons, such as members of political bodies, as a group rather than individually. This legislation now ensures that this power is available to the Government to deploy in respect of the Russia sanctions regime. This will help us to target our sanctions against members of defined political bodies such as the Russian Duma and Federation Council. This is the first time that a designation by description power has been included in a UK sanctions regime, and it underlines our commitment to exploring all options.

As my noble friend Lord Sharpe committed to in the previous Grand Committee debate on Russia sanctions legislation, we have also corrected errors made in SIs Nos. 3, 5 and 6. Noble Lords will be aware that, given the context of Russia’s invasion, legislation has had to be drafted at significant pace. We will continue to deliver further legislation at pace, working to minimise further errors.

The second set of regulations that I shall cover are the trade measures set out in the Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2022. These measures are designed to constrain the Russian Government by disrupting the oil industry and other advanced industries that are critical to fuelling the Russian economy and Mr Putin’s regime. Through these measures, we have limited access to goods required by the Russian military-industrial complex to maintain and develop its capabilities. In addition, it is vital that we demonstrate to those supporting Russia’s behaviour that the United Kingdom recognises the role that they are playing and will hold them to account. That is why, further to our previous sanctions against oligarchs close to Putin, we have introduced a ban on the export of luxury goods. These regulations, developed in close co-ordination with our allies, will cut off Russian access to strategic supplies critical to key exporting markets, including in the energy sector, while increasing the economic pressure on Mr Putin’s regime.

Russia’s war against Ukraine is a barbaric attack on a sovereign democratic state, a point that we have all emphasised. It is an egregious violation of international law and the UN charter. The United Kingdom and our allies will continue to hold the Russian Government to account, including through sanctions and other economic measures. Those we have already imposed in co-ordination with our partners are having damaging and lasting consequences for Mr Putin’s regime. As I speak, 60% of its foreign currency reserves, worth more than £275 billion, are frozen. Our measures cutting off key revenue streams are also working. Russia is struggling to find buyers for its seaborne oil, which is threatening major export revenues.

This debate also follows our announcement last week of fresh sanctions against Mr Putin’s war leaders. We have imposed sanctions on key leaders in Russia’s army, targeting those commanding the front line to commit these heinous acts. We have also targeted individuals outside Mr Putin’s military who are actively supporting his illegal invasion of Ukraine. These include Oleg Belozyorov, the CEO and chairman of Russian Railways, and Ilya Kiva, the defecting and expelled Ukrainian MP, who has publicly supported Russia’s actions in Ukraine.

We will continue our co-ordinated action against Russia in partnership with our allies, and encourage more and more countries to join us and act together. Working together, we can have the biggest possible impact on Mr Putin and his regime and, one hopes, end this abhorrent war. I beg to move.

More briefly, on No. 8, I declare an interest in that I drive a diesel vehicle, which are heavily relied on in rural areas. In north Yorkshire and the north of England generally, diesel vehicles are vehicles of choice, particularly in inclement weather. We are not out of the woods yet; we may have a snowfall yet before spring is over. So, in bad weather—and also as a vehicle of choice for farming and off-road—we rely on diesel vehicles. I would like to understand the implications of targeting the fuel industry, to which my noble friend referred. I had no idea how dependent we are on Russia for our resources of diesel oil. I would like to understand what the alternative sources will be, and whether this will contribute to the ever-rising cost of diesel fuel.

I am grateful for the opportunity to raise my concerns, and I do support the regulations before us this afternoon.

I am pleased that the Government are introducing the No. 8 sanctions, which focus on a variety of goods, as he indicated, including luxury items and technology as well as iron and steel products. However, questions remain over the time it has taken to close these loopholes. In addition, the Explanatory Memorandum notes that these sanctions are also intended to correct a series of defects, as the noble Lord, Lord Purvis, indicated. I hope the Minister can expand on the effect of the defects and on what impact they may have had.

As the Minister said, it is important that we explore all options. It would be good if we could hear from him exactly how we can act against those who act as proxies for individuals and organisations in order for them to bypass sanctions. The US has implemented such laws and it would be good to see how they will be impacted. Enforcement is crucial to making sanctions work, and the Minister has repeatedly said that this means acting in concert with our allies, but it is also about ensuring that we have sufficient resources to do the job that Parliament asked the Government to undertake. James Cleverly said yesterday that increasing staffing levels in this area is not easy, but he assured my honourable friend Stephen Doughty that Ministers have tripled the number of people working in enforcement at the FCDO since January. I hope the noble Lord can tell us what tripling means. What are the precise numbers involved? The drafting and development of the sanctions packages are separate from the Office of Financial Sanctions Implementation and other bodies involved in enforcement. I hope the noble Lord can tell us this afternoon that resourcing has gone up in both the development of policy and the enforcement bodies.

The Minister previously assured us about the application of sanctions in the UK’s overseas territories and Crown dependencies. Can he tell us what discussions the Government have had with them to ensure the effective enforcement of sanctions across all jurisdictions? He and the Government will continue to have the support of these Benches in bringing forward sanctions and new designations, but I hope that further steps will be taken in the next Session to reflect the immense bravery shown by the people and political leaders of Ukraine.

I hope the Minister will not mind me, like the noble Lord, Lord Purvis, seeking an update on a number of other issues not strictly related to sanctions. One is the humanitarian support that we give. The Government have admitted that only one-third of the £220 million pledged had been delivered by 1 April. Will the Minister explain the barriers to the full amount of promised humanitarian aid being delivered? Will he tell us a bit more about what we are doing to support Ukraine’s neighbours in dealing with the influx of arrivals fleeing the war? I know that the Minister has been focused on the Preventing Sexual Violence in Conflict Initiative and that we have a ministerial conference coming up. One of the most horrendous pieces of evidence we have seen has been the use of rape as a weapon of war in Ukraine. Will he update us on what support we are able to give not only in gathering the evidence of such crimes against humanity but in supporting the victims of such shocking crimes?