Russia: Sanctions

David Lammy Excerpts

Monday 31st January 2022 Commons Chamber

[Mr David Lammy (Tottenham) (Lab)]

I thank the right hon. Lady for advance sight of her statement, and for our discussions on this issue. I am very grateful.

As we in the Opposition have made clear since this crisis began, we stand in resolute support of Ukraine’s sovereignty and in opposition to Russian aggression. We support the essential international diplomatic efforts to achieve de-escalation and the defensive support provided to Ukraine. I said it in Kyiv two weeks ago, and I say it again now: we on these Benches believe that it is important to send a united message from the whole House. That is why we welcome moves by the Government to lay the groundwork for a robust and extensive package of sanctions against Russia in the event of any incursion or attack on Ukraine.

We believe that these measures must be broad, severe and comprehensive. They must apply widely to crucial sectors of the Russian economy, without gaps or loopholes.

They must target corrupt elites who store their money in our country. They must target not just relevant Russian entities, but those who enable, support, service or facilitate their activities. Can the Foreign Secretary confirm that UK subsidiaries of any new sanctioned targets would not be carved out of scope? We know that some oligarchs have used their wealth to seek influence and protect themselves from criticism, so may I ask for her assurance that these measures will be applied without fear or favour? Given that the measures were pre-briefed and include broad categories of potential targets, may I ask what assessment she has made of the risks of asset flight, and what steps she has taken to protect against it?

These sanctions are conditional on Russia’s actions. Their purpose is to form a serious deterrent, which when matched by unified action and the work of the G7, NATO and the OSCE, will make President Putin think again. However, there is much more that we must do irrespective of the decisions made by President Putin—things that it should not have taken an army threatening Ukraine to put in place; things that the Opposition have repeatedly urged the Government to address. For years, the Labour party and colleagues across the House have raised the alarm about the role of dirty money in keeping Putin in power.

For too long, our defences have been let down at home while the Government looked abroad. Despite warning after warning and report after report, the Government have been asleep at the wheel. London is the destination of choice for the world’s kleptocrats. We are home to the services and enablers who help corrupt elites to hide their ill-gotten wealth. We have a system of corporate transparency that permits the products of larceny on a grand scale to be hidden under our noses—and the result is the embarrassing spectacle of President Biden being warned that the widespread presence of suspect Russian money in the UK could jeopardise Britain’s response to this crisis. This is not a matter simply of individuals, welcome though that action is; it is about fixing a broken system—our openness to fraud and money laundering, our inadequate regulation of political donations, our lax mechanisms of corporate governance, and our weakness to foreign interference.

I therefore ask the right hon. Lady the following questions. Where is the economic crime Bill that the Government have just pulled? Where is the comprehensive reform of Companies House? Where is the register of overseas entities Bill? Where is the foreign agent registration law? Where are the new counter-espionage laws? Where are the new rules on political donations? Where is the reform of tier 1 golden visas? Where is the replacement of the outdated Computer Misuse Act 1990? Where is the reform of the Electoral Commission, and why does the Government’s Elections Bill make these problems worse by enabling political donations from donors based overseas?

The right hon. Lady’s movement on sanctions is welcome, but there is much, much more to do. These steps at home are not distinct from sanctions or diplomacy abroad. They must form part of a unified and coherent response—one that has been urged consistently by the right hon. Member for New Forest East (Dr Lewis), the Chair of the Intelligence and Security Committee. If she truly wants to fix the problem, she must start there.

[Elizabeth Truss]

First, may I thank the shadow Foreign Secretary for his constructive approach? It is vital that all Members of the House demonstrate their support for freedom and democracy in the face of severe aggression by the Russian regime, not just on the borders of Ukraine, but through Belarus, into the western Balkans, and across the world. I will take forward the united message that I have heard from the whole House to our friends in Ukraine, who very much welcome the support that they have been offered by the United Kingdom—the economic support, the support in terms of defensive weaponry, and the support in the face of Russian aggression.

The package that we are putting forward in legislation will be in place by 10 February, which means that we are able to enact wide-ranging sanctions in broad categories that really target anybody who is providing strategic or economic support to the Russian regime. There will be nowhere to hide, and I am very clear that we will apply those sanctions without fear or favour.

We have already taken steps to tighten up our regime on corruption and illicit finance through the Criminal Finances Act 2017, the global anti-corruption sanctions regimes that we have put in place and our review of all tier 1 visas granted before 5 April. We will also be introducing the economic crime Bill. The Prime Minister committed to that at the summit for democracy with President Biden at the end of last year. Let me assure the House that our priority is the defence of freedom and democracy. That comes before any short-term economic interest not only for our country, but for the whole of Europe. We must wean ourselves and others off dependence on Russian gas. We must target the criminal and corrupt money, and that is what we are determined to do with this extension of our sanctions regime, the most radical that we have put together yet.