Republic of Belarus and the Russian Federation: Sanctions and Tariffs

Marie Rimmer Excerpts

Wednesday 8th March 2023 Westminster Hall

[David Rutley]

I thank my hon. Friend for his contribution and I recognise the point he has made. As I will discuss at greater length later in my speech, the sanction lists are reviewed regularly. I understand his point about comparing the lists side by side. Clearly, there are differences in the approach we take to both those countries, but I understand the points that he makes.

In the face of President Putin’s illegal and barbaric war, Britain is doing everything possible to support Ukraine and to make Russia pay the price. I will begin by outlining the extensive sanctions we have already imposed on Russia and Belarus, before turning to more detailed points set out by the hon. Member for Mitcham and Morden—the nuts and bolts, as she called them in her very well crafted speech.

We have co-ordinated with our international allies to respond to this unprovoked and barbaric invasion, and together we have unleashed the most severe package of sanctions ever imposed on a major economy. I know it is supported by many people and encouraged by many colleagues in this room. The UK alone has sanctioned over 1,500 individuals and entities since the start of the invasion.

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

I congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on securing the debate and thank the Minister for allowing me to intervene, especially as I was late to the debate. The US Secretary of State recently announced further sanctions to tackle the sanctions evasion network, notably against Igor Zimenkov, who was cleverly in possession of a Cypriot golden passport and therefore sanctions could not be placed upon him. Does the Minister agree that our own Government need to take further action on individuals and countries that are helping Russia to bypass sanctions, which is exactly what Igor Zimenkov did?

[David Rutley]

I thank the hon. Member for that contribution, and I recognise that it is sometimes difficult to arrive bang on time for the start of a debate. I am not familiar with that particular case. Where people seek to circumvent our sanctions regime, we will review that in two ways: first, by continually reviewing and updating our sanctions lists; and, secondly, through HMRC’s serious enforcement action, which I will come to in a minute.

The latest package of internationally co-ordinated sanctions and trade measures announced on 24 February includes export bans on every item that Russia has been found to be using on the battlefield to date. These are important sanctions. Our sanctions toolkit extends far beyond the designations of individuals or entities.

In the year since Russia’s full-scale invasion of Ukraine, the UK has introduced an array of measures targeting the trade, finance, military and industrial sectors. These measures target industries that support the war and prohibit all new investments in Russia via third countries. They are constraining Putin’s ability to maintain the occupation of Ukraine, and they are weakening and isolating the Russian economy.

Our trade measures alone reduced Russian goods imports to the UK by 99% between September and November last year, compared with the same period in 2021. UK goods exports to Russia fell by nearly 80% over the same period. More than £20 billion of UK-Russia trade in goods is now under full or partial sanction. By anybody’s metrics, these are substantive measures. But Putin has not acted alone. Lukashenko’s regime in Belarus has actively supported Russia’s illegal and unprovoked actions. That is why UK sanctions also apply to Belarusian individuals, entities and organisations who have aided and abetted this reckless aggression.

In July 2022, we introduced legislation imposing further sanctions on Belarus in response to its support for Russia’s war. These sanctions included giving the UK the power to detain and de-register Belarusian aircraft, and measures prohibiting Belarusian ships from entering UK ports. We also expanded existing financial sanctions measures, banning more Belarusian companies from issuing debt and securities in London or obtaining loans from UK banks, among other measures. The legislation introduced trade measures against Belarus, including bans on the export of critical industry goods and technologies, as well as luxury goods, and a ban on the import of iron and steel.

Since before Russia’s invasion of Ukraine, Lukashenko’s regime in Belarus has shown continued disregard for international law and has committed ongoing violations of the fundamental freedoms and human rights of the Belarusian people. The regime initiated a brutal crackdown in 2020, which continues today, in response to protests which followed the flawed 2020 elections.

The UK previously introduced sanctions against Belarusian individuals, entities and organisations who have supported and facilitated the Lukashenko regime’s human rights violations. These sanctions signal our discontent and are intended to coerce the Belarusian regime to change their behaviour. In total, with the addition of our designations since Russia’s illegal invasion of Ukraine, the UK has targeted more than 120 Belarusian individuals and entities.

Tariff measures are adding further weight to our response, tightening the screws on Putin and his supporters. Between March last year and January this year, we introduced four batches of 35% tariff increases on a wide range of goods from Russia and Belarus worth over £2.4 billion, from vodka and caviar to certain metals, chemicals and plastics. Tariff increases on Belarus have been made in line with the evolving sanctions positions as part of our co-ordinated response.