Sanctions — House of Commons, 2022-03-01
Topic: International Affairs
Robert Edward Jenrick (Conservative, Centre-right): As I am speaking at a late stage in the debate, much of what needed to be said has already been said, so I will not repeat any of it. Let me instead make three brief points First, what really matter now are those things that have a systemic impact on the Russian economy and on Vladimir Putin’s ability to finance the war in which he is engaged in Ukraine. We must be careful, as a House, not to fail to see the wood for the trees and go down the rabbit hole of interest in individuals and oligarchs. That is of course important, and I will return to it in my second point, but it will not make a material difference in the short term. Many of those individuals are not close to Vladimir Putin today. Many of them left Russia or are dual nationals. The situation is highly complex. I will return to that in a moment, but what really matter, and will make a serious impact, are the measures that have, broadly speaking, been put in place over the last few days Like a number of Members on both sides of the House, I was disappointed that, when we had a debate on this subject towards the end of last week, the initial package of measures was very limited indeed, but now we find ourselves in a position where the UK, broadly in concert with our allies, has brought forward significant measures. For some time I advocated the move on SWIFT, and we were told that that was unlikely to happen. It has happened, and I am pleased that the UK played a significant part in advocating it, although I find it disappointing that it has been done in a partial manner. I wish that we could move to a point at which SWIFT is turned off from Russia more substantially, if not in its entirety, and I suspect that that is the UK Government’s ambition, but it is being held back by some others, particularly European allies, who rely on it to remit payments for oil and gas to Russian entities I think the sanctions that were put in place against the Russian central bank were by far the most significant that we have imposed as an international community, because part of the effort put in by Vladimir Putin over the last two or three years was to build up £600 billion of foreign currency reserves. The fact that half of that is based overseas, in foreign banks and foreign central banks, is extremely important and material, if we can truly freeze those assets and prevent the Putin regime from accessing them. I warmly support those changes and hope that they are effective; we will all have to follow events to see whether they really are in practice I am still not certain why the UK has not sanctioned all the major Russian banks. There are still some that we have not sanctioned, and I should like to hear a good answer to the question of why that is. There may be an answer, but I do not see it. There are vested interests across Europe; for example, some major banks in Russia are owned by SocGen—Société Générale, the French bank—so it is quite clear to me why the French Government would not want to sanction that particular bank, but I cannot see a good reason why the UK Government would not want now to sanction all the Russian banks, which is something that we could do quite quickly. I should be grateful if the Minister could, on this occasion or in future, make it clear why we are not doing it. When it comes to individuals, as I have said, I am sceptical about the impact of this in the short term. The term "oligarch" is bandied around, and there is a spectrum of those individuals, from people who are clearly gangsters to people who made money out of Russia in a way that none of us would regard as legitimate, but who are now quite distanced from the Putin regime. It will make very little difference in some cases, and in fact I suspect that Vladimir Putin will find it highly amusing and satisfying to see those individuals being punished.