That the Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022 (SI, 2022, No. 194), dated 28 February 2022, a copy of which was laid before this House on 28 February, be approved.
That the Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2022 (SI, 2022, No. 195), dated 28 February 2022, a copy of which was laid before this House on 28 February, be approved.
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. These instruments came into effect at midnight last night.
As stated by my right hon. Friend the Prime Minister, we have announced the largest and the most severe package of punitive economic and trade sanctions that Russia has ever seen in response to Putin’s pre-meditated, pre-planned and barbaric invasion. We will continue to ratchet up the pressure, working in concert with our allies around the world. We have already imposed sanctions on Vladimir Putin, Foreign Minister Sergei Lavrov, five Russian banks, 120 businesses and a long list of Russian oligarchs. Taken together, this targets assets worth hundreds of billions of pounds. Throughout, we have worked with our allies, including to agree to remove selected Russian banks from the SWIFT system and we have agreed to target the Russian central bank, but we will go further. I want to say to this House that we will continue to stand with the Ukrainian people in their heroic efforts to face up to unbridled aggression and that nothing is off the table.
Let me take the right hon. and learned Gentleman back to what he said about the number of individuals who have been sanctioned, as I do not think it is hundreds since this situation in Ukraine—it is eight. It is hundreds since 2014, and that conflation is unhelpful. As I understand it, the Government are finding it difficult to get all their ducks in a row in relation to these individual oligarchs, and the European Union is doing this much quicker. I hope he heard what I said earlier, because I think that that is because the legislative measure used in the EU is more effective in providing legal certainty for the sanctioning body. Why do we not put names of people on our sanctions? There is not a single name on the measure before us. We do this in a very legalistic way and the danger is that Mr Abramovich will have sold everything by the time we get round to sanctioning him.
I note what the hon. Gentleman says, but it is not often that people refer to the mechanisms of the EU as speedy. If he says that they are speedier than ours, clearly that is something for the system to look at. But we have a system that we are using at the moment, that has applied and that is what we have to go through. We are acting faster than ever before and we are leading the way in this area.
Will my right hon. and learned Friend update the House on what action the Government are taking to deal with the loophole that remains Scottish limited partnerships? They remain popular with Russians and Belarusians in terms of being able to invest in property and raise cash in the UK, which undoubtedly goes to support some of the very people we are seeking to stop acting in the way that they are in Ukraine at the minute.
I thank my hon. Friend for his question, and of course he is right to focus on those areas in particular, as he has a marked interest in them as regards Scotland. Where these measures are applied, they apply throughout the UK. We always want to look at any areas where he might bring issues to our attention, but these measures apply throughout the UK—
I want to make a little progress. Last night, we laid new legislation in Parliament on financial measures, including on sovereign debt; a prohibition to limit access to sterling; and a ban on any Russian company issuing securities or raising finance in the UK. That significantly further strengthens our arsenals of sanctions against Russia and it comes alongside increased trade measures, including a prohibition on sensitive “dual-use” items, which could be used by the military, and a ban on a further range of crucial industry goods, from high-tech to aircraft.
I am going to make a little progress and then I will give way. Sanctions announced by the UK and our allies are already having an impact. Yesterday, the rouble dropped 40% of its value, before closing 25% down; central bank interest rates have more than doubled, from 9% to 20%; international businesses are quickly divesting, as we have been hearing in the media; and the rouble is now trading at about a quarter of what it was when Putin took power. That will have an impact on the institutions that prop Putin up and that prop his cronies up.
I appreciate all that my right hon. and learned Friend is doing, but we are talking about the cronies and not the institutions as well. The hon. Member for Rhondda (Chris Bryant) is right; I do not see why we cannot just use privilege in this House to name some of the three dozen “dirty oligarchs”. Why can we not use privilege? What law firms and lawyers are holding this up? How much money—how many billions of pounds—will have fled the country by the time we nail these people down?
We work with our allies around the world on names. This is an effort between allies; we co-operate and discuss the matters, and officials work on that. The idea is to continue to work with our allies to bring forward further sanctions and press for further collective action to reduce western reliance, for example, on Russian energy.
I want to pursue the point made by my hon. Friend the Member for Rhondda (Chris Bryant), because 23 people on the EU sanctions list are not on the UK sanctions list. There are some surprising omissions—not just the oligarchs on the Navalny list, but the commanders in chief of the Black sea fleet, of Russian aerospace forces and of the Russian navy, and the Russian Defence Minister. We need a timetable for adding these people to the list. Crucially, I want to draw the Minister’s attention to paragraph 3.1.3 of the general guidance on sanctions implementation, which states:
“The everyday use by a designated person of their own economic resources for personal consumption is not prohibited.”
I would like the Minister to look at how we actually prohibit the use of the mansions, the jets and the economic assets that these people own. I do not just want them frozen; I want them put beyond use.
Nothing is off the table. Everything is being considered and is open for consideration. We have rightly taken unprecedented moves, which have been extremely rare in international precedent, if not unheard of, and which go further, in many instances, than what our allies have done. We have led the way in a number of different areas. That is not to say that there is not more still to do. I accept that there is, which is why I say that nothing is off the table.
Let me make a little progress and then I will give way. The solidarity of NATO is resolute, which is why the UK and our NATO allies have been moving troops to our NATO allied states. We will continue to support the legitimate Government of Ukraine and the people of Ukraine in their self-defence against this attack by Vladimir Putin. Let me reinforce this point: we are going to use every lever under our control to that end.