HANSARDCommons16 Jun 202614 contributions
Russian Oil Sales
4. What diplomatic steps she is taking with international partners to help prevent the sale of Russian oil to companies in China, Turkey and India.
18. What recent discussions she has had with international partners on the potential merits of increasing sanctions against Russia.
As you will know, Mr Speaker, Jo Cox was a good friend of mine long before we came into this place, as well as a colleague of mine at Oxfam, and I have to say that coming in today on this anniversary is particularly sad. I also know that Jo would have told me to stop getting so emotional and to get on with the job in her inimitable way, as she often did—so I will do just that.
We are committed to increasing the economic pressure on Russia by disrupting the revenue the Kremlin generates from Russia’s energy trade, including oil, which remains its primary means of financing the illegal war in Ukraine. The Prime Minister has today announced further sanctions, designating and specifying 70 individuals, entities and ships under the UK’s sanctions regulations, including 20 shadow fleet vessels.
While diplomatic pressure on China, India and Turkey is essential, we must also do more militarily to disrupt the shadow fleet carrying Putin’s oil. I pay tribute to our armed forces who, this weekend, boarded a Russia-linked tanker in UK waters under new Government powers. Since those powers were announced in March, 184 sanctioned shadow fleet vessels have made 238 journeys through UK waters, including 94 journeys into territorial waters, without a single interdiction until now. What is the Department doing with the Ministry of Defence and international partners to ensure that this is a sustained approach, rather than a one-off?
The hon. Gentleman will understand that I am not going to comment on future operational matters. What I can say is that we have also assisted in the interdictions of other vessels, including by working with the French and the United States in relation to the Bella 1. We keep Russia’s activities under very close review and designate hundreds of vessels under the shadow fleet measures, and we will look at all opportunities to ensure that they cannot evade sanctions.
Two years ago, I visited Ukraine, taking medical supplies in refurbished ambulances; we had to stop only twice to fill up with diesel, which made us realise just how close to us the frontline really is. It is deeply troubling that the Government are now reneging on their full support of Ukraine by pursuing an indefinite waiver on imports of Russian oil via third countries. I ask the Foreign Secretary to reverse course on this, and to close any loopholes putting any money into Putin’s war machine.
With respect, the hon. Gentleman may not have caught up with developments on that front. First, it was never an indefinite waiver; we said that we were keeping it under two-weekly review—my colleagues in the Department for Business and Trade made that very clear. Yesterday in the House, and indeed in announcements over the weekend, we set clear end dates for those temporary licences, which are to phase in these measures. Of course, these are new measures—we were never watering down previous sanctions; these are toughening the sanctions on Russia, but with sensible provisions in place to phase them in.
The Minister will be aware that the sanctioned oil and gas that is sold by Russia to Turkey and China is often used by companies in those countries to manufacture products, including ceramics. Those products are then dumped into the UK, distorting our domestic manufacturing base. That is a secondary impact of the profits coming from that sanctioned material. What evidence is the Department sharing with the Department for Business and Trade so that it can put in place the trade remedies necessary to protect our domestic manufacturing from the impacts of this illegal trading?
My hon. Friend raises an important issue. I would be happy to discuss it further with him, as, I am sure, would colleagues from the Department for Business and Trade.
I call the shadow Minister.
We pay tribute to our armed forces for their courage and bravery in boarding and seizing the Russian shadow fleet vessel at the weekend. We also welcome the further sanctions announced today, including those targeting the shadow fleet. We urge the Government to put pressure on those who buy and refine Russian oil, as the freedom of Ukraine depends on cutting off the funds that finance Putin’s illegal war. Given the urgency on the battlefields of Ukraine and the inflated revenue Putin has recently had from Russian oil, does the Minister think that the situation can wait until 2027 for the introduction of the ban on Russian-originated diesel and jet fuel imports?
The shadow Minister asks an important question. I made it clear in yesterday’s Delegated Legislation Committee that that is the end date, but we are keeping it under review every two weeks and the licence could end before then, with the appropriate notice in place for industry. I am clear that our sanctions are having a categorical impact on the Russian economy. Russia has slashed its economic growth forecasts, and collectively our sanctions have denied Russia access to $450 billion, which could have fuelled the war for many more years. Our sanctions are having an impact, but we will continue to toughen them.
We both agree that this is important. While Putin uses globally inflated oil prices to fund his war machine, our own defence investment plan is in tatters. The former Defence Secretary’s shocking resignation letter said that the Prime Minister was “unable”, and the Chancellor “unwilling”, to provide the funding for the defence investment plan. That is absolutely damning. Astonishingly, the very next day the Government announced £4.5 billion to paint 10,000 new zebra crossings. Given that the FCDO made a big cut to its own budget to fund defence last year, does the Minister share my anger that other Departments are refusing to contribute to keep our country safe?
Order. We have to be careful not to go very wide of the original question—and I think that was well wide, so I will call Rachel Hopkins to ask the next question.