Sanctions

18:40:00

I beg to move, That the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2025 (SI, 2025, No. 504), dated 22 April 2025, a copy of which was laid before this House on 23 April, be approved. This instrument amends the Russia (Sanctions) (EU Exit) Regulations 2019. It was laid before Parliament on 23 April under powers in the Sanctions and Anti-Money Laundering Act 2018, and the measures in the regulations, which subject to the affirmative 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 norms and rules, and protecting our citizens at home. Since coming into power, this Government have ramped up action with our partners, and that includes leading the way on targeting Russia’s revenues, bearing down on its military industrial complex, and deterring and disrupting Iran’s support for Russia. Just last Friday, the Prime Minister announced a major package of sanctions to target the decrepit and dangerous shadow fleet carrying Russian oil. It 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 for Ukraine remains steadfast. Our total support for Ukraine now stands at £18 billion, including £3 billion a year of military aid and our £2.26 billion contribution to the G7 extraordinary revenue acceleration loans scheme.

First, I commend the Minister on bringing the measure forward. I do not think there is anybody in this House who would not be encouraged by what the Minister and Government are doing in bringing in the sanctions. The one thing that always concerns everybody—the Minister knows this—is the £22.7 billion of frozen Russian assets. We all wish to know whether the Government can pursue those assets with a vengeance and an evangelical zest. That would be a better zest than any other. If we put a squeeze on the frozen Russian assets, we can use them for the benefit of Ukraine, and strengthen everyone who supports Ukraine.

I thank the hon. Gentleman again for his steadfast support for Ukraine, and for raising this important issue. As I said, we have already ensured that important resources get to Ukraine. Thanks to the speedy passage of measures through this House, and support from all parts of the House, we made sure that happened, and it is making a tangible difference. Two thirds of the ERA loan scheme funding that I mentioned has been disbursed and is immediately supporting Ukraine in obtaining vital military equipment. He rightly asks about frozen Russian sovereign assets more widely. As the Foreign Secretary said yesterday, we are working apace with international partners to look at all lawful means of ensuring that Russia pays for the horrific damage and destruction that it has done in Ukraine. I can assure the hon. Gentleman on that point. We will of course come back to the House in due course to update Members.

The Minister referred to the attempts to cripple the ghost ships and fleet. Does that have any effect on the shipments of oil to third parties, such as India, that refine the oil and then sell it on to countries that, like us, are trying to sanction Russia directly?

The right hon. Gentleman asks an important question. We take up all possible avenues of limiting Putin’s war machine and the energy revenues that go towards it. We keep all options under consideration, and we look at them carefully. As he knows, I will not comment on any future actions or designations for obvious reasons, but I can tell him that this action on the shadow fleet has had a significant real-time impact on Putin’s ability to wage war. I have given this figure on a number of occasions, but our sanctions programme overall has denied Russia $450 billion, which would have been enough to keep this war going for many more years. The action has had a tangible impact. Action taken under the last Government, and the action taken by this Government, which has been accelerated, is having a real impact on Putin’s war machine. Again, I thank the right hon. Gentleman for his consistent support for Ukraine, and his support for these measures. We are absolutely committed to securing a just and lasting peace in Ukraine. Maximising economic pressure on Russia is key to that, which is why we are continuing to introduce sanctions. We have now sanctioned more than 2,400 entities and individuals under the Russia regime. UK sanctions have also frustrated Russian trade: Russian imports to the UK have fallen by more than 98% since the invasion, and UK exports to Russia are down by more than 80%. We will maintain the 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 in order to create the space for talks on a just and lasting peace, and we commend President Zelensky for making his own commitment to peace by expressing his openness to engaging in direct talks with Putin. On Monday, the Foreign Secretary hosted Foreign Ministers from the Weimar+ group of key European allies to discuss our joint efforts to strengthen European security and secure a just and lasting peace in Ukraine. The House can be assured that these conversations form part of all our engagement with partners and allies across the world; indeed, I had such conversations today. Now is the time for Putin to come to the table, and for Russia to show that it is serious about ending this war or else face the consequences. The UK stands ready to ratchet up the pressure on Russia, so that it ends its brutal war of aggression. As I have said, we will continue to explore all measures through which we can ratchet up economic pressure. The statutory instrument allows us to go even further in our efforts to target Russia’s revenue streams and prevent the Kremlin building its military and industrial capabilities. It introduces a package of more than 150 new trade sanctions, including new, innovative measures that will prevent UK expertise from being used in Russia’s defence and energy sectors. It will deny Russia sophisticated UK technology and software, and will expand our prohibitions, with the aim of further constraining Russia’s economic growth and ability to fuel its war machine. Let me deal with each of the measures in the instrument. First, it introduces new export prohibitions that apply to a wide range of goods, including chemicals, plastics, metals, machinery and electronics. These prohibitions will deny Russia the means of procuring products that have military and industrial uses. Secondly, we are extending our prohibitions on the transfer of technology, applying them to a broader set of technologies relating 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 in intellectual property, blueprints or industrial know-how—from Putin’s 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. As has been said, Putin relies on energy production and exports to fuel his war economy, so the aim of these sanctions is to make key sectors of the Russian economy less productive and therefore less able to fuel this illegal and barbarous war against Ukraine. Fourthly, we are banning the import of Russian synthetic diamonds that have been processed in third countries, and helium. This targets future funding sources that Russia is developing, as well as potential circumvention routes. Finally, the instrument clarifies the enforcement responsibilities for a small number of trade sanctions on Russia. This will enable the office of trade sanctions implementation in the Department for Business and Trade to enforce certain trade sanctions offences, and to refer serious offences to His Majesty’s Revenue and Customs for criminal enforcement consideration. This Government remain committed to European security, and to our steadfast support for Ukraine. We are committed to standing up for the values of democracy and the rule of law, values that continue to be attacked so brutally by Russia. Sanctions, including this important package, are a key part of our efforts, and I commend the regulations to the House.

I call the shadow Minister.

18:49:00

We on the Opposition Benches support this statutory instrument and all measures that bear down on Putin’s regime and undermine his ability to prosecute the barbaric, illegal invasion of Ukraine. We support the further measures on technology transfers and software, and on diamonds and chemicals, and the other measures to tighten the import and export regimes. Of course, all of those are built on the critical mass of sanctions introduced by the Conservative Government. Working with allies, we imposed the largest and most severe set of sanctions that Russia had ever seen, in order to cripple Putin’s war machine. We sanctioned around 2,000 individuals, companies and groups. All of us should be in no doubt that the economic pressure that we and our allies have been exerting means that Russia cannot afford to sustain the cost of this illegal invasion. Indeed, Russian interest rates are at levels not seen for decades, and welfare payments are being cut. The international community’s sanctions have deprived Putin of $400 billion since February 2022—money that Russia could otherwise have spent on the war in Ukraine. On that note, I want to push the Government on four points, because we must strive ceaselessly to constrain Putin’s war machine and never see our actions as an end state. First, we recognise that some measures in today’s SI will deal with specific issues relating to third countries, but can the Minister confirm whether his Department is currently looking into wider secondary sanctions? If so, what is the scope? What kind of diplomatic engagement is he having with countries whose economies are being used to circumnavigate the international sanctions response, and what measures is he considering on the big-ticket issues that are well understood in this House? Secondly, when is the Minister’s internal deadline for getting the proceeds from the sale of Chelsea football club out the door, and how exactly does he envisage the money being spent? Can he update us on the Foreign Secretary’s engagement with the trustees, the Government of Portugal and the European Commission on this issue? We need to act with urgency, because we are talking about more than £2 billion. It goes without saying that this money could be a huge boost to the humanitarian effort supporting those affected by the invasion. Thirdly, can the Minister explain why the £2.26 billion loan to Ukraine, backed by the profits of sanctioned Russian assets, will be paid by the Treasury over three years rather than in one immediate instalment, especially given that it is earmarked for military equipment? Can he confirm, with a simple yes or no, whether work is actively ongoing in the FCDO and the Treasury to find additional legal solutions to allow for the mobilisation of sanctioned assets? Finally, there has been much commentary in recent weeks about initiatives to secure peace, but we urge the Government—in the strongest terms—to leverage Britain’s influence in every way that they can to help ensure that peace is secured on Ukraine’s terms. As has been the case from the outset, it remains ultimately for Ukraine, as a proud and sovereign nation that has sacrificed so much to defend itself and the fundamental freedoms that we all hold dear, to decide its own future. Of course, we want this terrible war to be brought to an end. Like President Zelensky, we hope for a lasting, reliable peace, but the Euro-Atlantic community must continue to be robust in the face of Putin’s aggression. The lesson of the past 20 years is clear: he only comes back for more. Today we have the added threat that the axis of authoritarian states is collaborating to wreak destruction on our continent, with Iran providing weapons and North Korea providing troops to support Putin. We even understand that a number of Chinese civilians are supporting Russia’s campaign. The stakes could not be higher, but there remains nothing inevitable about a victory for Russia, which thought it could capture Kyiv and subjugate Ukraine within days. Three years on, the cost to Russia has been enormous and unsustainable. We acknowledge that the UK Government are now proactively seeking to end the war through negotiations and that this takes UK policy on Ukraine in a new direction, but we must also remember that we and our NATO allies have a collective GDP that is 20 times greater than Russia’s, and a collective defence inventory that is many times larger than Putin’s. The Ukrainians are fighting valiantly, and we must ensure that they have the capabilities they need in their hands and the diplomatic support they require. The Government need to bring allies with us in supporting Ukraine to achieve a just and fair peace on its terms.

I call the Liberal Democrat spokesperson.

18:54:00

I congratulate the Minister and the Government on their work to date on sanctioning Russia. The UK must continue to stand shoulder to shoulder with our allies and the brave Ukrainian people in resisting Putin’s aggression. The support for Ukraine across this House sends a really strong message to the Kremlin, so we welcome this latest statutory instrument, which rightly tightens the screw on Russia’s ability to wage its illegal war. These amendments expand our sanctions regime in three important ways. First, by extending export bans on a wide range of products—chemicals, electronics, plastics, metals and machinery—we are further disrupting the industrial base that fuels Putin’s war machine. Secondly, by banning the transfer of associated software and technical knowledge, including cloud-based solutions, we will prevent the back-door flow of intellectual capital into the Kremlin’s hands. Thirdly, by introducing import bans on Russian synthetic diamonds and helium products, even when processed in third countries, we will cut off future revenue streams to help fund this war. These measures respond to the real-world attempts by Russia to sidestep sanctions by using complex supply chains and third-country networks. They align the UK with our allies—the EU, the United States and the G7—making our collective response far more powerful than going it alone. However, while I support these measures, I hope that Ministers will consider going further. If the Government are serious about holding Putin to account, sanctions must be not only enforced but escalated. The Liberal Democrats have been saying this for months: the UK should begin the seizure, not just the freezing, of Russian state assets.

I am grateful to my hon. Friend for what he is laying out, and I absolutely agree with him that the support for these measures across this House is really powerful. I was most recently in Kyiv two weeks ago, and the look on the faces of the people subjected to war crimes by the Russian army will stay with me for a very long time. That underlined to me the importance of UK efforts to support them, and I completely agree with his point about moving from freezing to seizing Russian assets. The Minister today and the Foreign Secretary earlier this week talked about working on a multilateral basis. Does my hon. Friend agree that if such an agreement cannot be found, we should consider moving on a unilateral basis in a leadership role for the United Kingdom?

I absolutely agree with my hon. Friend. There is an estimated £22 billion in frozen assets from Russian central bank reserves held and locked up in the UK at the moment. That money could and should be used to help rebuild Ukraine, provide humanitarian assistance and purchase the matériel that the Ukrainians need to defend themselves, and the UK should certainly be taking a leadership role in seizing those assets as soon as we can. The United States is already moving in that direction, as are EU member states. The United Kingdom, as we have said, should be leading, not lagging behind. We must also close the loopholes that have allowed Russian oligarchs to continue laundering their dirty money in London. That means properly resourcing the National Crime Agency, strengthening the economic crime legislation, and demanding the use of Magnitsky sanctions not just for individuals but for their family members when wealth is transferred in an attempt to dodge accountability. As a member of the UK’s parliamentary delegation to the Council of Europe, I strongly support the register that the Council of Europe has established, on which the UK is taking a leading role, to record the damage that Russia has done to Ukraine. I know that the Government are backing that work, but I hope that Ministers will promote the register, which does not have a very high profile at the moment, to ensure that victims’ claims are properly documented and Russia is held meaningfully to account for its actions. Let us not forget that Putin’s ambitions do not end with Ukraine. He is actively working to destabilise other sovereign states, including Georgia, Moldova, Romania, Bosnia and Herzegovina, and others in a wider attempt to erode European stability and democratic resilience. Let me be clear: the Liberal Democrats believe in the rule of law, the sovereignty of nations and the right of people to choose peace over tyranny, and Putin’s war is a grotesque assault on all those principles. This legislation is a necessary step, but it must be the beginning, not the end, of our efforts to hold Putin and the Russian state to account. We support the motion, but we will keep pushing this Government to be bolder, faster and more determined in their support for Ukraine and its defence of the values we all hold dear.

18:58:00

I thank all right hon. and hon. Members who have contributed to this debate. The measures introduced by this statutory instrument show how the UK continues to use its powers to apply further pressure on Putin, which, crucially, is to help secure an enduring peace and show that we remain fully behind Ukraine. I really welcome the strong support there always is across this House, from almost everybody—I note that one party is absent again. We have strong support, and although we may have disagreements with the Official Opposition across the Dispatch Boxes, but on Ukraine there has been absolute unity. I am glad that that has continued, and I thank them for that, and indeed the Liberal Democrats and other parties, too.

On the regulations, does the Minister agree that work also needs to be done on the shadow oil fleet, which is out there supplying money and support to Putin?

The hon. Gentleman might have missed it earlier on, but I outlined the significant work that we have done on that, including targeting hundreds of vessels, which is having a real impact. I will come to that impact in a moment. The shadow Minister, the right hon. Member for Aldridge-Brownhills (Wendy Morton), asked a number of specific questions. She asked about third-country circumvention and the measures we are taking diplomatically—

Order. We must now take the motion relating to deferred Divisions. DEFERRED DIVISIONS Motion made, and Question put forthwith (Standing Order No. 41A(3)),That, at this day’s sitting, Standing Order No. 41A (Deferred divisions) shall not apply to the Motionin the name of Stephen Doughty relating to Sanctions.—(Kate Dearden.) Question agreed to.

Thank you, Madam Deputy Speaker. I had forgotten about that particular procedural aspect of talking past 7 o’clock. Thank you for giving me the eye to remind me that that was coming; I appreciate it. As I was saying, on third-country circumvention, the shadow Minister asked me what measures we are taking. I can assure her and the House that this has been an extremely high priority for me and the Foreign Secretary. I regularly raise issues and we have a number of countries that we are particularly focused on. We have the common high priority list of items that are of most value to Russia’s military industrial complex. I assure her that we have also taken robust action against entities and individuals who have been involved in those matters. We have set out a number of those measures in past sanctions packages. I raise them on an almost weekly basis to try to bear down on that. The right hon. Lady asked about the proceeds from Chelsea football club. We are determined for the proceeds to reach humanitarian causes in Ukraine as soon as possible, and we are doing everything we can to bring that about quickly. The shadow Minister will understand that this is a complex legal issue, but we are working with our international partners. We have engaged with Abramovich’s team and we are exploring all options to ensure that the proceeds reach vulnerable people in Ukraine who are most in need. The right hon. Lady asked about the tranches of the ERA funding. I can assure her that two of the tranches, over two thirds of that funding, is already out the door. I spoke to Ukrainian Ministers about that and its availability, and they confirmed that they had access to it. She asked a detailed question about why it is being done in three tranches. I have just written to the shadow Foreign Secretary to set that out in more detail. We can make sure that she gets a copy of that letter. There are technical and other reasons for that, but we are ensuring that Ukraine gets what it needs right now, and is able to plan and deliver in its own defence. The right hon. Lady asked, as others did—it was raised by the Liberal Democrat spokesperson, the hon. Member for Lewes (James MacCleary)—about Russian sovereign assets. I repeat what I said to my friend the hon. Member for Strangford (Jim Shannon), which is that we are working at pace on that with others. We are exploring all lawful options to ensure that Russia pays. We have been leading; we have not been lagging. Indeed, the ERA loan is very much a testament to our leadership on this issue and I can assure the Liberal Democrat spokesperson that we are engaging very closely with international partners on that, as the Foreign Secretary said yesterday. The right hon. Member for Aldridge-Brownhills (Wendy Morton) rightly talked about the importance of continued and absolute support for Ukraine. I can assure her that that is the case, particularly at this time. The leadership shown by President Zelensky, President Trump and others in seeking an unconditional ceasefire and a just and lasting peace is crucial. We will continue to work with them on that and we will continue to support Ukraine in its endeavours. She rightly drew attention to the activities of others—North Korea, Iran and others—in supporting Russia’s barbarous actions. We have taken action on many of those things. The hon. Member for Lewes raised a couple of other points. On enforcement, I hope to have more news imminently and to be able to update the House on those matters. I promised that we would undertake an important review on the enforcement of sanctions across Government. It has been a crucial piece of work, which was rightly raised by many people. I hope we will have more to say on that very soon. I would also point him to the illicit finance and kleptocracy campaign led by the Foreign Secretary and me. We are taking a series of measures, working with Departments across Government, to ensure that London, our country and our wider British family are not used to support kleptocrats and those contrary to our national interests, or indeed Ukraine’s interests in this specific case. The hon. Gentleman raised the important role of the Council of Europe. I completely agree with him. My ministerial colleague the noble Lord Collins is currently attending a meeting of the Council of Europe’s Committee of Ministers. We have taken important work there—not only on the register of loss and damage, but on crucial issues such as the special tribunal against Russian aggression, as the Foreign Secretary spoke about yesterday. There were, rightly, a number of questions about the impact that these sanctions are having. The impact is substantial: the Russian Government have been forced to take their first major tax hike in more than 20 years, and, following a loss of $7.6 billion in 2023—its first loss in 25 years—Gazprom, one of Putin’s main sources of incomes, lost $12.9 billion in 2024. Russian oil delivery now takes significantly longer due to sanctions, showing how they and the work on the shadow fleet have disrupted and impeded Russian trade.

The Minister is speaking of the ways in which we are disrupting the Russian regime, but could he say a few words about those who are resisting the regime within Russia? We often speak about pressure being put on Russia to stop Putin’s aggression, but we sometimes forget about those within Russia who are putting themselves at huge risk to resist the actions of the Russian President. Will the Minister mention how we look to support those who bravely stand up and resist the regime within Russia?

The hon. Gentleman raises an important point. Of course, our opposition here is to Putin’s regime and what it is doing in Ukraine. We do not have a quarrel with the Russian people or with Russia; our quarrel is with Putin’s regime, what it is doing and what he has brought his country to. It was hugely humbling to meet a number of leading figures in the past few weeks, including Vladimir Kara-Murza, who was brutally imprisoned by Putin’s regime, and Yulia Navalnaya, whose husband, Alexei Navalny, died in prison. We continue to call for the release of Russian political prisoners; their imprisonment is absolutely abhorrent. These measures are hugely important and are having an impact, and I welcome the unified support across the House for them. I commend these regulations to the House. Question put and agreed to. Speaker’s Committee for the Independent Parliamentary Standards Authority Resolved, That, in pursuance of paragraph 2A of Schedule 3 to the Parliamentary Standards Act 2009, Mary Curnock Cook CBE be appointed as a lay member of the Speaker’s Committee for the Independent Parliamentary Standards Authority for a period of five years from 2 June 2025 to 31 May 2030.—(Lucy Powell.)