Sanctions Implementation and Enforcement
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The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
With permission, Madam Deputy Speaker, I will make a statement on the cross-Government review of sanctions implementation and enforcement. I promised to update the House on this issue at the earliest opportunity, and I am glad to have the chance to do so today. For those Members who want to get into the full details, they are being published on gov.uk.
Sanctions are a powerful tool in our armoury, and a vital foreign policy and national security tool. They are used to deter and disrupt threats and malign behaviour, and to demonstrate our values. Our sanctions support UK interests, protect our citizens, and defend international peace and security. Maximising economic pressure on Russia is key to securing a just and lasting peace in Ukraine, as we debated in the House yesterday. As I said then, the UK has sanctioned over 2,400 targets under our Russia regime, and international sanctions have deprived Putin of $450 billion dollars since the invasion began—an amount of money that would have allowed him to prosecute this terrible war for many more years. Since July 2024, this Government have introduced over 500 new sanctions designations against individuals, entities and ships. Just last Friday, the Prime Minister announced a major package of sanctions to target the decrepit and dangerous shadow fleet carrying Russian oil. This is the largest package of sanctions against the shadow fleet, with 110 targets. According to some estimates, sanctions have crippled 200 ships—almost half of Putin’s entire fleet.
President Zelensky is serious about peace, agreeing in principle to a full, unconditional, and immediate ceasefire. His readiness for that peace is demonstrated by his being in Türkiye. Meanwhile, Putin has dodged and delayed, all the while raining down terror on Ukraine. If Putin does not engage seriously on peace, the UK and our allies will have no choice but to ramp up the economic pressure even further, forcing him to the table.
Alongside taking measures against Russia, we are using designations to uphold human rights and promote democracy around the world. Just last month, we targeted pro-Kremlin operatives responsible for destabilising Moldova, and we sanctioned corrupt officials in Georgia and Guatemala for undermining democracy and the rule of law. We will not stop there. We will continue to expose malign activity wherever we find it, using the full range of sanctions tools at our disposal to shape the world for the better. Sanctions play a crucial part in the Foreign Secretary’s mission to tackle corruption and dirty money, which is vital to protect the UK from criminals and safeguard our democracy. In January, the Foreign Secretary announced our new world-first legislation to use sanctions to crack down on those fuelling irregular migration.
This Government are committed not only to using sanctions effectively, but—this is the main focus of the statement—to ensuring that they are enforced rigorously. That means punishing serious breaches with large fines or criminal prosecutions. In opposition, we recognised that there was a need for greater focus on sanctions enforcement. Since we came to office, we have been working across Government on this, as well as liaising with law enforcement partners and industry. In October, we launched the office of trade sanctions implementation, which has new civil enforcement powers to crack down on those seeking to soften the blow of our sanctions. At the same time, we introduced civil powers for the Department for Transport to enforce transport sanctions.
We have reinforced the office of financial sanctions implementation in His Majesty’s Treasury—known as OFSI for short—and the multi-agency Joint Maritime Security Centre, enabling them better to tackle evasion and develop new tools targeting the Russian shadow fleet, including in the English channel. The investments and improvements that we have made are already paying off. Last month, OFSI imposed a penalty of £465,000 on a major law firm’s subsidiary for breaches of sanctions linked to Russia’s invasion of Ukraine. We also saw the UK’s first successful prosecution under the Russia financial sanctions regulations, thanks to excellent work by the National Crime Agency. I commend it and its teams for the incredible work that they have done. I expect to see more enforcement action in the coming year—I obviously cannot go into the details of that in the House, but we should be assured that our teams are working effectively in a range of agencies and across Government.
Funding from the economic deterrence initiative has been critical to strengthening our capabilities and maintaining the UK’s reputation among its allies. That initiative is bolstering sanctions work in the overseas territories and Crown dependencies. For example, in the British Virgin Islands, it has enabled the NCA to support enforcement and combat potential circumvention. Excellent work has been going on in that regard, and we hosted OTs and CDs at Lancaster House just a few months ago, to collaborate and ensure that we are improving capability across those territories.
I turn to the enforcement review. I am determined to go after those who try to evade our sanctions. In October, I launched a cross-ministerial review to look at how we can improve UK sanctions implementation and enforcement. A strong sanctions regime is crucial for achieving our foreign policy goals and, in turn, building a secure and prosperous UK. This forward-leaning review had three goals: first, to make it easier to comply with our sanctions, which will help businesses to support us in our shared goals; secondly, to increase the deterrent effect of enforcement and make it clear that avoiding sanctions does not pay; and, thirdly, to enhance our ability to take robust action against those seeking to evade our measures. We are publishing the report on the conclusions today, and I am glad of this opportunity to set out how we will ensure that the UK’s approach continues to set a gold standard.
We know that the vast majority of businesses agree with our sanctions and are keen to work with us to make sure that they are enforced. To simplify compliance, we have launched a new email alert system to keep UK businesses updated on designations, legislation, licences, and other related topics. We are also making our guidance clearer and easier to access, providing further clarity to UK industry on ownership and control, and introducing a single sanctions list for all designated persons. We will also assess the benefits of creating a single reporting point for suspected breaches. To give our sanctions extra bite and deter evasion, we will publish a new enforcement strategy, making clear the consequences of non-compliance. We will look at new options to accelerate civil penalties for financial sanctions breaches, including via an early settlement scheme, and we are dedicated to strengthening our enforcement tools and ensuring that we have the necessary powers, capabilities, and intelligence.
We have already taken action. Last month, we introduced measures to prevent designated individuals from holding director roles in the UK, protecting our brilliant British businesses. The Department for Business and Trade is updating laws to protect workers who report breaches of financial, transport and certain trade sanctions, giving them crucial whistleblower protections. Those actions, taken together and at pace, will further improve our world-class sanctions regime, allowing the UK to project strength and promote the rule of law across the world.
But we are not satisfied with just those measures. We are committed to exploring other areas, so that we can go even further and deeper to improve enforcement. A number of those areas will take longer to scope; I will be able to update the House on them in due course. We will explore options for more effective join-up on intelligence, including the merits of a new joint sanctions intelligence function. We will consider the introduction of sanctions end-use licensing controls for exports with a high risk of sanctions diversion.
We will continue to support the British overseas territories and Crown dependencies in enhancing their enforcement capabilities, and will explore enhancing transport powers to target specific aircraft with sectoral sanctions. As appropriate, we will update Parliament when additional outcomes have been scoped, including those that require new or amended legislation. We have brought forward a number of pieces of sanctions legislation recently; in addition, we expanded our Russia regime this week into a range of areas, and varied our Syria regime in the light of changed circumstances there.
Let me conclude by reiterating this Government’s commitment to strengthening the implementation and enforcement of UK sanctions. As we deliver the actions set out in the review, we will continue to engage across Departments and with industry, wider stakeholders and international partners to maximise the effectiveness of our work. I commend this statement to the House.
Wendy Morton (Aldridge-Brownhills) (Con)
This is the third time in a week that the Minister and I have met across the Dispatch Box to debate sanctions. Once again, I thank him for advance sight of his statement.
Sanctions are imperative in supporting the rules-based international system and punishing those who breach those rules. The last Conservative Government placed sanctions on Assad and his cruel regime, and helped to lead a co-ordinated approach with our allies on Syria. Britain put in place sanctions on Iran, and worked with the US to reaffirm our shared commitment to opposing those who threatened peace, security and stability in the middle east. In 2021, the UK put in place sanctions, including asset freezes, on Chinese Government officials for gross human rights abuses. Britain led international efforts to sanction Putin and those behind his war machine in response to Russia’s illegal invasion of Ukraine. We put plans in place to set up the office of trade sanctions implementation, which, as the Minister said, was formally established in October. It was set up to bolster our trade sanctions capability, crack down on companies that breach trade sanctions, and co-ordinate across Government to ensure that sanctions are implemented effectively.
At the time, the Minister announced a cross-Government review. We have not yet seen the report, but I wish to press the Minister on a few points. First, what changes are being made to the sanctions implementation and enforcement framework? What role does OTSI play in any changes? The Minister refers to robust action to increase sanctions evasion deterrence, but what specific measures are being considered? He also mentions a new enforcement strategy; when can we expect that to be published? I would welcome clarity on how the new joint sanctions intelligence function fits into our existing intelligence framework. How does he envisage that working with what we are doing with the US and our other Five Eyes partners?
As I am sure the Minister appreciates, thanks to our leaving the European Union, we now have our own sanctions framework. The flexibility to set our own framework and lead the charge with allies and partners cannot be squandered. Does the Minister expect the EU security pact to touch on the independence of our sanctions regime? We should look to build on the strong measures that we have placed on countries and entities. What progress is being made in identifying further sanctions to impose on those already targeted?
Will the Minister give us an assessment of the number of groups and militia operating in Syria? How will he ensure that the relaxation in sanctions benefits the people of Syria? How often will he review the impact of the relaxation of sanctions? Will he commit to putting sanctions on entities and people in Syria if the standards that we expect in relation to protecting rights are not met? Will the Government consider introducing a new bespoke sanctions regime and set of regulations for Syria?
The critical mass of the current UK sanctions on Iran were introduced under the last Conservative Government. Sanctions form one part of the approach to tackling Iran, but what is the Minister’s broader strategy on Iran?
When we were in government, we imposed the largest and most severe set of sanctions that Russia had ever seen. The economic pressure that we have collectively imposed with the international community has crippled the Russian economy and deprived Putin of $400 billion that could have funded his illegal war. We cannot afford to let up on exerting that pressure on Putin’s war machine. Part of that includes tackling Russian assets. What consideration has the Minister given to deploying assets from the sale of Chelsea football club to support Ukraine? Will he confirm a timeframe for deploying that money?
I would welcome clarity on what information is coming forward to the Minister about potential sanctions breaches and loopholes that are being exploited. Does the review sufficiently plug the gaps that have been identified? Will he update us on what action he is taking against any third party countries that are supporting the countries and entities we have already sanctioned?
Finally, how does the Minister plan to deepen our international co-ordination? What discussions have the Government had with the United States? Did the Government have advance knowledge of yesterday’s announcement? Will it have a bearing on UK policy on sanctions on Syria? Sanctions are a crucial tool in our diplomatic arsenal. We must ensure that they operate as effectively as possible to ensure that international norms are adhered to.
Stephen Doughty
I thank the shadow Minister for her broad welcome for this work. I will do my best to answer as many of her questions as I can.
The shadow Minister asked me about the overall review. As I said, it is being published now and she can peruse that when she can; I encourage other hon. Members to look at that as well. We welcome feedback and suggestions on it. To summarise a couple of the key themes, we recognise that different sectors are at different levels of maturity with sanctions, and that Government communications and engagement need to reflect that. Some areas need more assistance; there is a lot of will, but they need support. Some of the measures can be very technical and we want to ensure that businesses can comply. Direct engagement between Government and industry is important, as that has the highest impact on compliance.
We need to bring together our efforts so that they are understood. A range of different agencies are doing important and distinct work, but that needs to be understood by the layperson. We need to improve our guidance and ensure we bridge any gaps in unclear regulations. We need to ensure that people understand the consequences of breaching sanctions, as well as the options. If they voluntarily disclose measures, as a number of businesses and others have done, there are ways forward.
The shadow Minister asked me about intelligence and co-operation with other countries, which is crucial. We will explore how that intelligence function works, but I can assure her that there is already a huge amount of co-operation between us and key partners, including in the United States, the EU and elsewhere. Cross-Government co-operation is also important. Our officials work incredibly hard and I pay tribute to the incredible team in the sanctions unit at the Foreign, Commonwealth and Development Office, and in other Departments, because they do remarkable work.
The shadow Minister asked specifically about co-operation with the EU. It is important that we co-operate with the EU on sanctions, as we do already. That is being considered, along with a range of measures, as we approach the important summit next week. I assure her that our sanctions policy remains our own, but we can often have maximum effect when we work in co-ordination with others. The EU is progressing its own packages against Russia and others.
On third country circumvention, I have paid particular attention to that issue; indeed, I had meetings just this morning to raise concerns on that specific issue with a partner country. Such meetings are a feature of pretty much every week, and we are bearing down on all the routes that might support measures that undermine our sanctions. On the sale of Chelsea football club, we are determined to see the proceeds reach humanitarian causes in Ukraine as soon as possible, and we are doing everything we can to bring that about quickly, but this is a complex legal issue. The UK is working with international partners, has engaged with Abramovich’s team and is exploring all options to ensure that the proceeds reach vulnerable people in Ukraine who are most in need.
On Syria, the shadow Minister knows that we updated the regime this week, and we remain with those sanctions against the Assad regime, but we have removed restrictions on others. We reserve the right to introduce new sanctions in future circumstances on any regime, but we will keep the situation there under close review and respond to the changing circumstances. We will judge the new Government by their actions.
On Iran, we announced on 14 April further sanctions to tackle the domestic threat posed by the Iranian regime by sanctioning the Iranian-backed, Sweden-based Foxtrot criminal network and its leader, Rawa Majid, for their role in attacks against targets across Europe. We took very firm action in relation to the supply of ballistic missiles to Russia for use in the illegal war in Ukraine. We remain determined that Iran must never develop a nuclear weapon, and we are committed to using all tools available to ensure that, including using the UN sanctions snapback mechanism if necessary.
Lastly, the shadow Minister asked about enforcement, how we are having an impact and what difference is being made. I have already given some examples, but another example is that in April, the National Crime Agency secured the first criminal convictions for the breaches of Russian sanctions. Dmitry Ovsyannikov was found guilty of circumventing sanctions regulations and money laundering after receiving £76,000 from his wife and a new Mercedes from his brother, who was also found guilty of circumventing sanctions regulations. They were sentenced to 40 months imprisonment and 15 months imprisonment suspended for 15 months respectively, so the right hon. Lady can be absolutely assured that all the appropriate authorities are acting.
These investigations are often complex and necessarily are not made public. I urge the House to bear with some of our excellent teams in different agencies as they seek to enforce on these regimes.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Foreign Affairs Committee.
Emily Thornberry (Islington South and Finsbury) (Lab)
The Minister already knows my view that, as we develop our sanctions policy, Parliament should be more engaged so that we can have collective knowledge and all feed in to the best possible sanctions policy. We do not have enough of that at the moment, and there is more that we should do. One thing that Members would do is suggest more creative ways of using sanctions and more lateral thinking, but, in the end, it does not matter how creative or eye-catching a sanction is: if it is not enforced, it means nothing. My concern, and the concern of many, is that there are simply not enough investigations being done for breaches of sanctions, particularly against British companies. I have listened very carefully to the rapid way in which the Minister gave his statement and read carefully what is in it, but nothing in it says that more resources will be put into actually investigating potential breaches of sanctions. We can change rules and give more powers, but if there are not enough people actually kicking down doors—literally or otherwise —to ensure that companies are not breaching sanctions, we are frankly wasting a fantastic opportunity.
Stephen Doughty
My right hon. Friend is no stranger to these issues, and it has been a pleasure to engage with her on them in my conversations with her. I welcome the work of her Committee in that regard. I gently say that there has been a significant amount of parliamentary scrutiny of sanctions—including two occasions this week already, as the shadow Minister mentioned, as well as the course of our debate, FCDO oral questions and my statement today—but I am absolutely committed to engaging with parliamentarians. We have held a number of roundtables, and I hope to continue to do those on a regular basis. We welcome all advice and information from parliamentarians. It is often not possible to come back to the House, particularly on specific information and suggestions. My right hon. Friend will understand the importance of our not commenting on possible future designations, because doing so would lessen their impact.
My right hon. Friend rightly raises the challenge of the actual resources for enforcement. They are across a range of agencies and Departments and are subject to ongoing discussions in the spending review, but, having witnessed the work of a number of those organisations, I can assure her that they are doing some absolutely incredible work. I will give another example: in March, the office of financial sanctions implementation announced the imposition of a civil monetary penalty of £465,000 against HSF Moscow for breaching UK sanctions and publicised the lessons that industry can learn from that case. There is example after example, and I want to see more of them. I will continue to work with our enforcement agencies and others to ensure that is the case.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Calum Miller (Bicester and Woodstock) (LD)
I thank the Minister for advance sight of his statement. I welcome the cross-party consensus we have heard today that an effective sanctions regime is one of the most potent tools at our disposal to promote the UK’s ideals and interests abroad. It has formed a vital pillar in the strategy to punish Putin and undermine his ability to prosecute the war in Ukraine. However, our sanctions regime must be coherent and consistently applied to be effective. I know that the Minister is personally committed to that, and I welcome today’s report, yet the disparate responsibilities across Departments and agencies have sometimes worked against the effectiveness of our approach despite the hard work of officials, to which the Minister has already referred.
What lessons can the Minister point to from the review that will ensure that future development and application of our sanctions policy will be truly joined up across the many agencies in Government? Following President Trump’s meeting yesterday with President al-Sharaa, our approach to sanctions in Syria is a critical test of that approach. Can the Minister confirm that the Government will consider lifting further sanctions on Syria only if sanctions relief is preceded by clear progress towards political inclusion and the protection of minority groups and women in Syria?
The Minister knows that the Liberal Democrats have repeatedly urged the Government to use sanctions more robustly against the leaders of countries that have taken actions against British values or in violation of international law. May I therefore urge him to use the impetus from the review to take a fresh look at three cases? Will he and officials urgently review the application of sanctions on supporters of the Georgian Dream party, including Bidzina Ivanishvili and Irakli Kobakhidze, who are working to suppress democracy in Georgia? Will they review that for officials in Hong Kong who have led the suppression of democracy in the city and the extraterritorial intimidation of democracy campaigners resident in the UK? Will they also review that for the extremist members of the Israeli Cabinet, Ben-Gvir and Smotrich, who continue to advocate for the conquest of Gaza and the forced displacement of Palestinians from the occupied territories?
Stephen Doughty
I thank the Liberal Democrat spokesperson for his broad support for the thrust of these measures and agree with many of the points he made. He specifically asked me about Syria. We had an extensive discussion about this earlier this week, but I am absolutely clear that the sanctions on those individuals responsible for atrocities under the Assad regime remain in place. The changes that we have made are related to ensuring that financial and economic activity in line with the potential for peace and stability in Syria is able to emerge, but I assure him that we keep the situation under very close review and retain the ability to impose further sanctions and other measures at a future point. He made points about an inclusive political settlement and the absence of violence. We have seen some very worrying incidents in recent months, and we will watch very carefully and closely along with other partners and co-ordinate with others on that.
The hon. Gentleman also raised three specific contexts. He knows that I will not comment on future designations, but we always welcome input, and I note what he said. In relation to Georgia, we have sanctioned multiple individuals responsible in relation to the repressive actions and corruption that we have seen in recent months, and we keep the situation under close review. I am deeply concerned about the situation in Georgia. I have made that clear to Georgian Dream representatives, and I will make it absolutely clear again. Our teams are working very closely, and the hon. Gentleman knows that we have suspended wider co-operation with Georgia. That is a deep regret, because we had significant and positive relations with it, but as long as it turns away from the Euro-Atlantic path, there must be consequences, as well as consequences for the actions it has taken domestically and otherwise. I note what he has said, but, as he will understand, I will not comment on future designations.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
The Minister is doing important work on sanctions that are highly relevant to the situation in the middle east, where Israel’s aid blockade means that large numbers of children in Gaza will begin dying of starvation in the coming days. It plans to dismantle the humanitarian system and replace aid workers with mercenaries. The Israeli Government are threatening the ethnic cleansing of Palestinians and calling up the military to make it happen, while British diplomats at the UN warn of genocide. This House cannot say, “Never again”, to atrocities unless it acts when faced with them. Does the Minister agree that the UK must uphold the responsibility to protect and that concrete action, including fresh sanctions on Israeli Ministers, are needed to stop Israel in its tracks, let aid in, get hostages out and force an urgent ceasefire?
Stephen Doughty
My hon. Friend speaks with typical passion and from her experience of these matters. She will know that we do not comment on potential future sanctions, but as the Foreign Secretary said in Parliament on 1 April, we continue to keep all these issues under review. The culture of impunity for those engaging in violence is intolerable, and the Foreign Secretary has also been clear with Israeli Ministers that the Israeli Government must clamp down on settler violence and settlement expansion—my hon. Friend will know the sanctions we have imposed in that regard. She will also know the actions we have taken against Hamas and Palestinian Islamic Jihad and the designations that have been introduced, and that we have repeatedly called for an immediate ceasefire. We have restored funding to the United Nations Relief and Works Agency, suspended a number of our export licences and provided £129 million in humanitarian assistance, and we continue to work at every level to bring an end to the horrific violence we are seeing and the intolerable death toll. We will continue to work with all of our partners globally to achieve that.
Sir Julian Lewis (New Forest East) (Con)
Does the Minister agree that, now it is slowly dawning on President Trump that his friend Vladimir is stringing him along, there are good prospects that America will not weaken the level of sanctions it imposes on Russia? Can he also clarify one point? He said in his statement—and also yesterday evening—that if Putin does not engage seriously with peace, the UK and our allies will have no choice but to ramp up the economic pressure even further, forcing him to the table. I would have thought that we ought to be ramping up the economic pressure now to the maximum level that we can, so unless the Minister is just saying that that ramping up will take longer, can I suggest that the Government get on with it as quickly as possible?
Stephen Doughty
The right hon. Gentleman will know that we have been ramping up that pressure—indeed, the new measures we took just last night on support to Russia and its military industrial complex do exactly that, let alone the huge package of designations we have introduced against the shadow fleet. Again on the topic of enforcement, during its first six months of operation—from 1 October last year to 6 April this year—the UK’s voluntary insurance reporting mechanism has challenged 271 suspected shadow fleet vessels in the English channel on their insurance. Not only are we putting these measures in place, but we are following up on them. We have been very clear that President Zelensky is serious about peace—he has repeatedly shown that by his actions. Vladimir Putin has not. We are clear that our sanctions will remain in place and we will continue to do all we can to choke off support for the Russian war machine, which is causing such devastation in Ukraine.
Rachael Maskell (York Central) (Lab/Co-op)
Given that sanctions provide crucial leverage and deprive individuals and regimes of power and resources, it is vital that they are applied equally. When we see the effect that sanctions have had on Putin’s Russia, we question why the Government have not brought equality against the Israeli regime, whose treatment of the Palestinians is pushing people into starvation and famine and ultimately bringing 2.1 million people to their deaths. In light of Israel’s actions, we need equality, and while I understand that the Minister will not make pronouncements from the Dispatch Box today, could he set out how he formulates the evidence by which the thresholds are reached for sanctions to be applied? Will he look again at those frameworks to ensure that there is equality, so that we can use sanctions effectively and the world understands where this country is coming from?
Stephen Doughty
My hon. Friend asks about the broad principles that underlie our sanctions action. Essentially, there are three parts: the first is to deter malign activity, the second is to disrupt malign activity, and the third is to demonstrate values. As I referenced, we have imposed sanctions in relation to extreme settler violence, and we have worked with other partners on a range of measures. She will understand that I am not going to comment on future designations, as I said a moment ago, but we remain deeply seized of the situation in Gaza at present. The Minister for the middle east, my hon. Friend the Member for Lincoln (Mr Falconer), as well as the Foreign Secretary and others, are deeply engaged with this issue, and I have set out a number of the steps we have taken to respond to it.
My hon. Friend can be assured that we act around the world through our sanctions regime, and I have given a number of examples—not just geographic areas, but in relation to themes. I have mentioned the theme of tackling illicit finance and kleptocracy more widely. We have introduced a number of measures in that regard, so she can be assured that this is not simply about Russia and Ukraine sanctions, but about acting globally.
Steve Barclay (North East Cambridgeshire) (Con)
The right hon. Member for Islington South and Finsbury (Emily Thornberry) and I do not agree on many issues, but she is absolutely right to focus on enforcement. Before coming to this place, I was head of sanctions and anti-money laundering at a financial institution, so with respect, I found it a bit naive for the Minister to say in his statement that avoiding sanctions does not pay; these are often very profitable accounts. He also referenced the issue of compliance in his statement, but institutions often say that they are complying by filing suspicious activity reports, safe in the knowledge that insufficient action will be taken. I appreciate that the stock answer is, “We do not comment on individual enforcement cases”, but could the Minister tell us the average cost of a successful prosecution for a sanctions breach, and how many there have been since the Government came to office?
Stephen Doughty
The right hon. Gentleman knows the industry and these measures—of course, he also held senior roles in government that were responsible for these matters—so he will understand that I am not going to go into the technical details of every individual case. However, I can tell him that, for example, His Majesty’s Revenue and Customs has issued six compound settlements since 2022 against UK companies that have breached the Russia trade sanctions, for a total of £1,363,129. Those include a compound settlement in August 2023 for £1 million, so I feel absolutely justified in saying that avoiding sanctions does not pay, and I am committed to ensuring that we have more of these actions in future. Some of them will be public, while others will not be—a range of measures is in place. We are introducing new powers, particularly to find ways of settling cases in which companies have come forward and voluntarily disclosed, but equally so that those that do not do so will face penalties.
Lloyd Hatton (South Dorset) (Lab)
Too often, sanctions evasion happens via our British overseas territories, particularly through secretive havens such as the British Virgin Islands, and a lack of public ownership records complicates efforts to find out who is involved in sidestepping our sanctions regime. With that in mind, can the Minister set out how he is working with all of the overseas territories to finally meet their commitments to introduce registers of beneficial ownership, and can he reassure this place that our sanctions are robustly enforced across the entire UK family?
Stephen Doughty
My hon. Friend is absolutely right to raise this issue, which I have repeatedly raised with the leaders of the overseas territories and indeed with the Crown dependencies. We have seen robust action on sanctions, both in implementing sanctions and working with our authorities to ensure that we have the biggest enforcement effect. I have mentioned the recent meetings we had at Lancaster House with sanctions enforcement officials, as well as the specific example of BVI. The National Crime Agency has been working with the British Virgin Islands on a range of issues, and that work has been very productive, but my hon. Friend is absolutely right that transparency contributes to effective sanctions. I have repeated my expectation that OTs and CDs should introduce fully accessible public registers of beneficial ownership, but the OTs also agreed at last year’s Joint Ministerial Council to introduce legitimate interest access registers. We have seen real progress from a number of them, although some others are not quite there yet. My hon. Friend can be assured that I am not resting in raising serious concerns about this issue, and I will continue to do so over the weeks ahead.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call Richard Foord, a member of the Select Committee.
Richard Foord (Honiton and Sidmouth) (LD)
The G7 oil price cap prevents us from selling shipping and insurance services to companies carrying Russian oil when it is sold above $60 per barrel. I appreciate that the Minister might say that he cannot preannounce future sanctions—I think we all understand that—but has the UK advocated with G7 allies for reducing that price cap further, given that in recent weeks, the price of crude oil has dropped below $60 per barrel?
Stephen Doughty
The hon. Gentleman raises a very important issue. I will not comment on future actions, but since the introduction of the oil price cap, data from the Russian Ministry of Finance showed a 30% reduction in tax revenues from oil in 2023, compared with the year before. The price it has received for flagship Urals-grade crude has continued to sit below global levels, and our work—particularly on the shadow fleet—has significantly disrupted and impacted the revenues that Putin is able to get from oil to fuel his war in Ukraine. We will consider all possible lawful measures to further strengthen our efforts in that regard, but the best way to do so is by working with our international partners. We are engaged in daily conversations on these matters, but of course, I will not comment on future specific actions.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
I thank my hon. Friend for his statement. Will he commit to investigating whether further sanctions are required on regional, federal, military and legal enforcement agencies that have been involved in and made possible the continued mass abduction and deportation of Ukrainian children to Russia? At the very least, will he commit to ensuring that the UK aligns its sanctions against individuals involved in this forcible transfer of children with those imposed by the United States and the European Union?
Stephen Doughty
My hon. Friend raises a crucial point, and she knows of my personal support and indeed that of the Foreign Secretary on this important issue. She knows that we have already designated individuals in this regard. We continue to keep all future sanction possibilities under review. We will look closely at examples of anybody involved in that heinous action of taking Ukrainian children away from their families and attempting to wipe out their culture and identity.
Greg Smith (Mid Buckinghamshire) (Con)
As the sanctions regime ramps up, although perhaps not as quickly as my right hon. Friend the Member for New Forest East (Sir Julian Lewis) calls for—I endorse that call—the Minister is right to be doing the work he is doing. As part of his review and assessment as those sanctions ramp up and become more complicated, does he feel that everything possible is being done to ensure that UK-based businesses are kept up to date with that changing picture, so that no one inadvertently falls on the wrong side of the law?
Stephen Doughty
The hon. Gentleman is absolutely right to raise that issue. The vast majority of UK businesses and individuals want to comply with these regimes. They support them, and they certainly do not want to be exposing themselves or their customers to any additional risk. We want to make sure that they have the best advice in a timely, clear and understandable fashion. That is exactly what some of the measures in this review are set out to do. They consolidate information and how it is provided and ensure that there is training and capacity-building in sectors that are perhaps less used to enforcing in these areas. He can be assured that that is very much at the heart of what we are doing, because we want to help people to comply.
Patricia Ferguson (Glasgow West) (Lab)
My hon. Friend makes a powerful case for the efficacy of sanctions in achieving our diplomatic and foreign policy aims, but as we observe the 50,000 deaths, the countless injuries, the forced displacement, and now the possibility of mass starvation and the renewal of bombing of hospitals by Israel in Gaza, is it not time that sanctions were applied to Ministers such as Smotrich and Ben-Gvir? It is perfectly understandable for the Minister to say that he will not discuss future designations in the Chamber, but will he consider and discuss with colleagues the strength of feeling in this Chamber that sanctions must be placed on these individuals sooner rather than later?
Stephen Doughty
My hon. Friend raises important and serious issues. She knows that we have repeatedly condemned the extreme rhetoric of far-right Israeli Ministers. We have taken action against violent settler groups in the west bank. We are regularly supporting the humanitarian response in Gaza, whether that is through the £129 million of humanitarian assistance, the medical treatment and food, the work we have done with Jordan to fly medicines in or the work with Egypt to treat medically evacuated civilians and with Kuwait to support UNICEF. There is a range of measures, but she will understand that I will not comment on future designations.
Iqbal Mohamed (Dewsbury and Batley) (Ind)
The UK rightly has imposed sanctions on Russia for its illegal invasion of Ukraine and on Putin for war crimes. The UK has imposed sanctions on officials in Syria for breaches of international humanitarian law, for targeting hospitals, schools and aid convoys and for obstructing humanitarian aid, as well as for the use of chemical weapons and the indiscriminate bombing of civilians. How do the Government therefore justify the absence of similar sanctions on senior members of the Israeli Government, when there is clear evidence of Israel perpetrating the same violations? What actions have the UK Government taken to comply with their obligations specified in the International Court of Justice advisory opinion from July 2024 to withdraw all political, economic and diplomatic support that helps perpetuate Israel’s unlawful occupation of Palestine?
Stephen Doughty
The hon. Gentleman raises a number of questions, and it might be helpful if I get the Minister for the middle east, my hon. Friend the Member for Lincoln (Mr Falconer) to respond to him directly on a number of them. We have repeatedly been clear, as I have just said, in condemnation of the extreme rhetoric of far-right Israeli Ministers. We have been clear about the horrific situation that we see in Gaza. We have been clear about the support we are providing to make a difference on the ground. We have been clear in our support for a ceasefire and clear in our calls for immediate humanitarian access. As I have said repeatedly, he will understand that I do not comment on future designations.
Josh Fenton-Glynn (Calder Valley) (Lab)
Can my hon. Friend update us on what conversations have been had about the use of frozen and sanctioned Russian assets to support those fighting Russian aggression in Ukraine?
Stephen Doughty
That is an important question that has come up a number of times this week. My hon. Friend will know that we have already disbursed the first two tranches under the extraordinary revenue acceleration scheme, which is making a tangible difference to Ukraine right now. We have put £2.26 billion into the scheme, and I again thank colleagues for ensuring the swift passage of that measure. We are resolute in that support. We are continuing to explore all other lawful options. We are clear—at least, the majority of parties in this House are—that Russia needs to pay for the damage it has caused, but the most impact will be felt if we can work with partners and in collaboration with others.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his answers and for returning to the Chamber within 24 hours of his comments about Russian sanctions yesterday. I read an interesting article on financial sanctions that highlighted the alleged loopholes that are enabling sales and transfers of funds through estate agents, property management and so on. Can the Minister outline whether the Department’s approach will also deal with those UK citizens who may be enabling Russian assets to be diverted and therefore the circumvention of sanctions, which are right and proper?
Stephen Doughty
The hon. Gentleman will know that there are significant civil and criminal penalties for the evasion of sanctions. If he or any other Member of the House has any evidence of that, I hope that they would share that with us and the relevant authorities, and we are looking at a single reporting point for people to do that. He can be assured that we look at every way in which people are trying to circumvent the sanctions regimes. We cannot have London, the UK or our British family being a place for those who enable this type of activity. We are resolute and committed to cracking down on it.
Mark Sewards (Leeds South West and Morley) (Lab)
I welcome the Minister’s statement. It is fairly obvious that these sanctions are essential in deterring the kinds of behaviours and activities that we do not want to see internationally. The Foreign Secretary has spoken about introducing sanctions against those involved in smuggling gangs and those who cause irregular migration to the UK. The Minister made reference to it in his statement, too. Will he update the House on when we can expect to see such sanctions take effect? Will he also comment on their effectiveness in dealing with and defeating the criminal smuggling gangs?
Stephen Doughty
This Government have been clear that we will take every measure possible to crack down on irregular migration and those who facilitate the cruel trade in human beings, trafficking them across continents and countries. That is one of the reasons we are introducing the new regime. We will be bringing forward the legislation in due course, and at that time we will be able to discuss the exact details of the proposals; we aim to bring that forward as soon as possible so that we can start taking actions. That is just one of the measures we are taking, and I regularly engage with European and other partners to deal with the whole chain of smuggling gangs and illegal migration. That is exactly what the Prime Minister will be setting out in his visit to Albania.
Madam Deputy Speaker (Ms Nusrat Ghani)
The final question goes to the ever-patient Chris Vince.
Chris Vince (Harlow) (Lab/Co-op)
I thank the Minister for his statement. Listening to comments from across the House, I am reminded of a conversation I had this week with one of my constituents, Anne Strike, who is a victim of polio; she raised her concerns about the recent cases of polio found in conflict zones. I know how important residents of Harlow see it to tackle breaches of UK-imposed sanctions. The Minister has touched on this a bit already, but will he tell me what progress we have seen on enforcement measures in recent months?
Stephen Doughty
I am delighted that the residents of Harlow not only have my hon. Friend as an MP, but are interested in seeing these measures being effected. I think that is shared across the United Kingdom: people want to see these measures work. I have given a number of examples, but I will give him another. The Department for Transport has detained four transport assets under the Russian sanctions regulations: one helicopter, two private jets and one super-yacht, totalling more than £80 million. I hope the House can see today just how serious we, our enforcement agencies and all our Departments are. It is fantastic to be working in a team across Government on this issue. I again pay tribute to the fantastic officials, not only in the Departments but in our enforcement agencies. They bring the pressure to bear on those who seek to evade or divert from our sanctions regimes.