Ukraine — House of Lords, 2022-01-26
Topic: International Affairs
Richard Newby (Liberal Democrats, Centre to centre-left): My Lords, as the Statement makes clear, the situation in Ukraine is now extremely perilous. The precise intentions of Russia are unclear, but if it were to launch a major invasion, as the Statement makes clear, the consequences would be horrendous. The Prime Minister set out the three strands of action which any attack would provoke from the UK and our allies: first, tougher sanctions on Russia; secondly, further steps to help Ukraine defend itself; and, thirdly, an increased NATO presence to protect our allies on the eastern front. These are all sensible and necessary, but I would like to concentrate on the issue of sanctions The Statement talks about imposing co-ordinated and severe sanctions against Russia should an attack take place. Clearly, economic sanctions are one area where we can really impact on the ability of the Russian regime to continue business as usual. It is, of course, unfortunate that sanctions are being discussed by the EU and the US with the UK often not being in the room. This means in reality that we will have no option but simply to follow what they decide. In practice, this may be of relatively little consequence, but it demonstrates how being outside the EU reduces Britain’s influence. More generally, it has been notable how small a diplomatic role the UK has played compared to France, Germany and the US. Having a Prime Minister who is spending several hours a day attempting to persuade his own Back-Benchers not to end his own political career does not help, nor does the Foreign Secretary’s peculiar sense of priorities, which puts a visit to Australia ahead of being involved in European and broader international discussions on Ukraine Whatever common sanctions are adopted, the UK has an ability to take unilateral action that can have a major impact on the kleptocratic Russian regime. This is by moving against Russians and their money in the UK, particularly in London. A number of measures need to be taken, but three could be instituted immediately. First, the Conservative Party is a major beneficiary of Russian money. This includes 14 members of the current Government, of whom six are in the Cabinet, including the Chancellor. The Conservative Party could decide today to stop taking donations from wealthy Russians, many of whom have links to the Putin regime. Will it do so? Secondly, one of the reasons so much Russian money is laundered in London is that it can done secretly. The noble Baroness, Lady Smith, has already alluded to this. For six years, the Government have promised to introduce a register of beneficial interests in overseas companies. Indeed, yesterday the Prime Minister stated—incorrectly, incidentally—that the Government were already doing so, but they are not. My colleague Layla Moran MP has just introduced a Bill to this effect in another place. Will the Government now fast-track this Bill, given that it enacts government policy, so that it can be in place before the end of the Session? Thirdly, Russian oligarchs benefit from "golden" visas which enable them to buy the right to live in the UK. Will the Government now stop this practice The Government are going to be faced with some extremely difficult judgment calls in the weeks ahead, as events on the Ukrainian border unfold. The measures I have just proposed are simple, easy to effect and would hit the Russian elite where it hurts most—in their pockets. The measures are all long overdue in any event, but the current emergency makes them even more necessary President Putin’s understandable desire to keep any vestige of democracy at bay in Russia means that he is willing to threaten, bully and, if he thinks he can get away with it, act illegally to preserve the regime. However, he acts only having weighed the costs. By the range of actions which we now take, or signal that we will take, if he crosses the Ukrainian border, I hope we can persuade him that the game is not worth the candle. Sanctions form a key part of those costs, and the Government should start acting on them without delay.