Sanctions

Anne-Marie Trevelyan Excerpts

Wednesday 19th July 2023 Commons Chamber

[The Minister of State, Foreign, Commonwealth and Development Office (Anne-Marie Trevelyan)]

I beg to move,

That the Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2023 (SI, 2023, No. 713), dated 27 June, a copy of which was laid before this House on 29 June, be approved.

The regulations amend the Russia (Sanctions) (EU Exit) Regulations 2019. The instrument was laid on 29 June 2023 under powers in the Sanctions and Anti-Money Laundering Act 2018. The measures in the instrument, which entered into force on 30 June 2023, have been co-ordinated with our international partners, while refining the approach to accommodate the particular circumstances of the UK’s legal sector. By restricting access to additional services from the UK, they will contribute to increasing the pressure on Putin for waging his illegal and brutal war against Ukraine. The measures place further constraints on the Russian economy, and therefore Putin’s war machine. They add force to the largest, most substantial package of economic sanctions that Russia has ever faced.

The instrument delivers on the commitment made by the UK Government to ban legal advisory services on specified commercial activities. That will further hamper the ability of Russian businesses to operate internationally. The legislation will make it illegal for any person working in the UK, as well as all British nationals working abroad, to advise on or facilitate certain commercial activities that would be sanctioned by the UK Government if they involved a British national or entity, or were taking place in the UK. In practice, that will make it harder for Russia to benefit from the UK’s world-class legal expertise. That goes beyond prohibitions already in place, which cover a range of professional services, including accountancy, architecture and management consultancy. This latest measure demonstrates our determination to ratchet up pressure on Putin for continuing his illegal war.

Although the legislation will close down opportunities for Putin’s associates and supporters to benefit commercially from the UK’s legal expertise, it is important that we ensure that legal services can continue to be provided where they contribute to upholding the rule of law and compliance with our sanctions framework. By protecting the fundamental right to legal representation, we distinguish ourselves from Putin’s oppressive regime. By ensuring that legal advice can continue to be provided for the purposes of compliance with our sanctions framework, we enhance the effectiveness of our regulations and intensify the pressure on Putin.

Legal professionals are under a strict obligation to ensure that their services support their clients to be sanctions-compliant, and do not stray into enabling them to circumvent restrictions. It has become apparent, however, that the legislation can be interpreted as having the unintended consequence of prohibiting persons in the UK and British nationals abroad from providing legal advice to clients seeking to comply with the sanctions regimes of our international partners. It is not the intent of these regulations to prohibit that type of legal service. UK lawyers should be able to support their clients to be sanctions-compliant beyond UK law as we work closely with our allies to tighten the net on Russia’s economy.

We have looked at this issue thoroughly and, as an immediate response, we are working across Government and alongside representatives of the legal sector to implement a general licence that will make it clear that that type of activity can continue.

[Sir Chris Bryant (Rhondda) (Lab)]

The Minister is addressing a point that the Law Society has made to quite a few of us, and I guess quite a few of us will be referring to it later in the debate. If this had been primary legislation, we would have tabled an amendment. Is it not normally better for us to do all the scrutiny of this kind of work on primary rather than secondary legislation? Then we can always help the Government to get it right first time.

[Anne-Marie Trevelyan]

The hon. Gentleman is generous as ever in offering to assist us to make progress. I hope that, as we bring in the secondary legislation, it will be another step towards tightening the pressure on those who would wish to use legal representation for the wrong things.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

I welcome the Minister’s willingness to engage on the general licence; it is very important to the Law Society, and for good and sound reasons. We all share the policy objective, so will she perhaps agree to meet, at both official and ministerial level, with representatives of the Law Society so we can thrash out the exact detail and get it right?

[Anne-Marie Trevelyan]

I will be happy to do so. I know that we aim to have this in place in the coming days. As I said, we are working closely with the legal sector and are grateful for its constructive engagement on this important issue. I am happy to commit to my officials meeting the Law Society to hear its particular concerns and indeed, I have no doubt, offers of its views on how we can make the scheme as effective as possible.

Once we have issued the licence, we will consider whether amendments to the SI to address the issue are appropriate and necessary. We will do that in conjunction with the legal sector and bring such amendments forward, if needed, at the earliest opportunity.

As with all other sanctions, this latest package has been developed in co-ordination with our international partners. We will continue to work with the legal community to monitor the effects of the legislation to ensure that it is achieving its objectives. We will also continue to co-ordinate with our international allies to identify and address any gaps or loopholes that emerge in our respective sanctions regimes.

To conclude, this latest measure demonstrates our determination to target those who participate in or facilitate Putin’s illegal war of choice. Through our sanctions regime and those of our allies, Russia is increasingly isolated, cut off from western markets, services and supply chains. Key sectors of the Russian economy have taken a significant hit and its economic outlook is bleak. The UK Government will use actions to intensify the military and economic pressure on Russia until Putin ends his brutal invasion of Ukraine. We welcome the clear and continued cross-party support for this action and for the sanctions regime. I commend the regulations to the House.

--- Later in debate ---

[Anne-Marie Trevelyan]

I thank all hon. Members who have made contributions this afternoon. I will do my best to address the questions they have raised, and as ever, where I do not have the information to hand, I will ensure that I write to them.

This latest measure reflects the reality that legal advisory services can play a fundamental role in facilitating border trade and investment, and that by restricting those services, we will further constrain the Russian economy and Putin’s war chest. While we have worked to ensure that Russia cannot access our legal expertise in relation to certain commercial activities, we have not hindered work, but have helped to provide judicial rights and access to justice. We have also not hampered legal advice that facilitates compliance with our sanctions network and framework, and we are working to ensure that advice in relation to compliance with the sanctions laws of our international partners is also permitted.

I absolutely commit to write to the hon. Member for Cardiff South and Penarth (Stephen Doughty) about the questions he has raised, including his important point about third-party circumvention risks. Discussions and work are ongoing with a number of colleagues; I have been talking with colleagues internationally about how we tackle those risks and find tools to address the enforcement challenge they present.

As ever, my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill) has brought his wisdom to the debate about this important piece of legislation. I will ensure that he and the Law Society are able to discuss their concerns about the detail of the general licence in the very near future, conscious—as a number of colleagues have said—of the timeframe over which we are keen to move it forward. He made the important point that access to legal advice should be taken early to reduce the risk of error or breach. We must ensure that the general licence will work in practice, providing the right support while constraining those who wish to abuse the system.

I put on record that the continued leadership of my hon. Friend the Member for Henley (John Howell) at the Council of Europe is hugely welcomed and appreciated by all Members across the House. I thank him for his offer of support and for sharing the expertise that sits in the Council of Europe. As we continue to work in what is a complex and, sadly, ever-changing and ever-developing environment, we continue to get ahead of those who wish to abuse the system.

[Stephen Doughty]

It was good to hear the Minister confirm again that she is going to work on the issues that have been raised about the general licence. However, can she say whether Ministers such as herself are actively involved in the issuing of all licences and exemptions in relation to our sanctions regime, or is it still just being done by officials without ministerial sign-off?

[Anne-Marie Trevelyan]

Obviously, the hon. Member would not expect me to discuss the detail of matters that are live and ongoing. However, we work as a team and across Government: while it is the Foreign, Commonwealth and Development Office that holds the pen, and it is me at the Dispatch Box today, the legislation, work, management and enforcement issues are covered across Whitehall. We all work together very closely on those issues, and as I say, it is a live and continually changing environment as we keep track of what we are trying to achieve. One part of that, of course, is ensuring that enforcement can be monitored. The commitment of £50 million following the integrated review refresh was an important part of that and it will help us build even stronger enforcement tools to ensure we make the most effective use of the sanctions we bring in.

This, Madam Deputy Speaker, is the latest edition of our package of sanctions. We will continue to use sanctions to keep up the pressure until Putin ends his horrific, senseless war and Ukraine is allowed its territories back to live peacefully once again.

[Sir Chris Bryant]

Will the Minister allow me to intervene before she sits down?

[Anne-Marie Trevelyan]

Yes, I will.

[Sir Chris Bryant]

I would just like to put on the record how much we respect and admire the team of roughly 150 people who work in the sanctions group. It is not easy work—it is tough to get it right—and they are magnificent. Is that in order?

[Madam Deputy Speaker (Dame Eleanor Laing)]

That is in order.

[Anne-Marie Trevelyan]

I thank the hon. Gentleman for his kind and thoughtful intervention. They are an extraordinary team—they are working flat out all the time. Sadly, until such time as Putin loses this war, we will continue to work flat out to ensure that we have as many sanctions tools available to us as possible. In the meantime, I hope and trust that the House will support the regulations.

Question put and agreed to.

Resolved,

That the Russia (Sanctions) (EU Exit) (Amendment) (No. 3) Regulations 2023 (SI, 2023, No. 713), dated 27 June, a copy of which was laid before this House on 29 June, be approved.