Russia (Sanctions) (EU Exit) (Amendment) Regulations 2025

Lord Purvis of Tweed Excerpts

Monday 12th May 2025 Grand Committee

[The Minister of State, Foreign, Commonwealth and Development Office (Baroness Chapman of Darlington) (Lab)]

My Lords, these regulations amend the Russia (Sanctions) (EU Exit) Regulations 2019. This instrument was laid on 23 April under powers in the Sanctions and Anti-Money Laundering Act 2018. The measures in this instrument, subject to the “made affirmative” parliamentary procedure, entered into force on 24 April.

Sanctions are a powerful tool in our armoury. They play an important part in promoting peace and security abroad, upholding international rules and norms, and protecting our citizens at home. Since coming to power, this Government have ramped up action with our partners. This includes leading the way on targeting Russia’s revenues, bearing down on its military-industrial complex, and deterring and disrupting Iran’s support to Russia. 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 dedicated fleet.

The Government’s support to Ukraine remains steadfast. Our total support for Ukraine now stands at £18 billion, including £3 billion a year of military aid, as well as our £2.26 billion contribution to the G7 extraordinary revenue acceleration loans scheme. Two-thirds of our extraordinary revenue acceleration scheme funding has now been disbursed and will support Ukraine to obtain vital military equipment. We are absolutely committed to securing a just and lasting peace in Ukraine, and maximising economic pressure on Russia is key to securing this. That is why we are continuing to introduce sanctions.

The UK has now sanctioned over 2,400 entities and individuals under our Russia regime, and international sanctions have deprived Putin of $450 billion since the invasion began. UK sanctions have also frustrated Russian trade. Russian imports into the UK have fallen by more than 98% compared to pre-invasion levels, and UK exports to Russia are down by more than 80%. We will maintain this relentless pressure on Putin, alongside our allies, to force him to the table and ensure that he engages seriously in negotiations.

We reiterate our call on Russia to accept a full, unconditional ceasefire in Ukraine to create space for talks on a just and lasting peace. We commend President Zelensky’s commitment to peace by expressing his openness to direct talks with Putin. That is why the Foreign Secretary is hosting the Weimar+ meeting in London with partners from across Europe at what is a key moment for Ukraine and the collective security of our continent. The time is now for Putin to come to the table and for Russia to show that it is serious about ending this war or face the consequences.

The UK stands ready to ratchet up the pressure on Russia so that it ends its brutal war of aggression. This instrument allows us to go even further in our efforts to target Russia’s revenue streams and prevent the Kremlin from building its military and industrial capabilities. It introduces a package of over 150 new trade sanctions. This includes new, innovative measures that will prevent UK expertise being used in Russia’s defence and energy sectors. It will deny Russia sophisticated UK technology and software, and it will expand our prohibitions with the aim of further constraining Russia’s economic growth.

I now turn to each measure in this instrument. First, the instrument introduces new export prohibitions on a wide range of goods, including chemicals, plastics, metals, machinery and electronics. These prohibitions will deny Russia the means to procure products that have military and industrial uses. Secondly, we are extending our prohibitions on the transfer of technology, applying the prohibitions to a broader set of technology related to goods that are important for Russia’s military-industrial sectors and for its economic development. Through these measures, we are removing UK expertise, whether that is contained in intellectual property, blueprints or industrial know-how, from critical supply chains.

Thirdly, the instrument will ban the transfer of software relating to business enterprise, industrial design and oil and gas exploration and production. Putin relies on energy production and exports to fuel his war economy. Therefore, the aim of these sanctions is to make key sectors of the Russian economy less productive.

Fourthly, we are banning the import of Russian synthetic diamonds that have been processed in third countries, and helium. These target future funding sources that Russia is developing, as well as potential circumvention routes.

Finally, this instrument clarifies the enforcement responsibilities for a small number of trade sanctions on Russia. This will enable DBT’s Office of Trade Sanctions Implementation to enforce certain trade sanctions offences and refer serious offences to HMRC for criminal enforcement consideration.

To conclude, the Government remain committed to European security, and committed to standing up for the values of democracy and the rule of law, values which continue to be attacked by Russia. Sanctions, including this trade package, are a key part of our efforts. I beg to move.

[Lord Purvis of Tweed (LD)]

My Lords, I thank the Minister for outlining in clear turns what the Government are doing. We support these measures. The Government are rightly continuously moving to ensure that any previous omissions are corrected, as these instruments do, that new and emerging technologies are covered, as these instruments do, and to ensure that there is a watching brief on the circumvention and operation of third countries, as these instruments also do. I will ask the Minister a couple of questions, but I think we all hope that the diplomatic work being done at the moment will bring about a ceasefire on terms that benefit Ukraine, its integrity and sovereignty.