May I echo your comments, Mr Speaker, about the Deputy Speakers who are, sadly, stepping down at the snap general election? I also thank the Minister for setting out the purpose of the regulations, for her general cross-party working, and for her assurance that the Security Minister and the Treasury are looking at such sanctions, because they need a cross-Government approach. I also echo her comments about the excellent work of officials at the Office of Financial Sanctions Implementation.
Labour supports the necessary and common-sense steps being taken in the statutory instrument. We will not seek to divide the House on it, although it might have been nice to have considered it last week, rather than this morning, from the point of view of one’s nerves. As a party, we have consistently supported the Government in expanding the UK sanctions regime as it relates to a variety of countries, but particularly Russia since the unlawful and barbaric invasion of Ukraine.
We have also been candid and honest where we think that Ministers are not going far enough or have acted too slowly in holding global actors to account, or where there are considerable loopholes in our regimes that they continue to exploit. When it comes to the integrity of our sanctions regime, we have made it clear that Labour will work assiduously with partners and allies to counter the plethora of threats posed by actors across the world, will ensure proper enforcement, and will bring about the seizure of Russian state assets for the purpose of supporting Ukrainian reconstruction.
Before turning to the measures, I will raise a more general issue that my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), the shadow Minister for Europe, has brought to our attention on several occasions. On the enforcement of monetary penalties for breaches of the UK sanctions regime, the OFSI website shows that only one penalty has been issued against the Russian regime since the start of the war in Ukraine. Can the Minister elucidate whether that is the case? Is the website out of date, or is there another reason why our enforcement is woefully low—in comparison with the USA, for example? I hope that she can supply clarity on that.
Labour supports the measures. They will prevent a designated person being a director of a company or overseeing the promotion, formation or management of companies, which is a necessary step in dismantling the ecosystem of illicit finance in which designated persons skirt sanctions and retain access to their wealth.
I ask the Minister for clarity on one point. Concerns have been raised by hon. Members on both sides of the House about the issuing of licences that grant designated persons dispensation to become exempt from given provisions. Can she clarify whether there will be ministerial oversight of the granting of those licences? Will the Treasury, the Foreign, Commonwealth and Development Office and the Department for Business and Trade work in lockstep to ensure cohesion and co-ordination when it comes to their granting? Last year, revelations came to light regarding a licence issued to none other than Yevgeny Prigozhin that allowed him to sue a UK journalist. That is what can happen when licences are issued without proper scrutiny. I hope that the Minister can provide clarity on their granting.
We also support the measures relating to the mandate of His Majesty’s Revenue and Customs on Belarus, as well as the new reporting obligation on persons designated under the asset freeze to disclose the value and nature of any funds or economic resources that they own, hold or control in the UK. We also support the prohibition of export from the UK of items critical to Russian weapon systems and military development, in addition to certain aerospace goods; the prohibition of Belarusian aluminium imports; and the ban on the provision of ancillary services.
Why has it taken so long to bring in those prohibition measures? It seems unconscionable that well over two years since the onset of the war in Ukraine—do not forget that the House’s Belarusian concerns were raised before then—UK items that could be used in Russian weaponry are making their way via Belarus to the frontlines, potentially aiding and abetting Russia’s war effort against the people of Ukraine. We understand that any sanctions regime is a work in progress, but we cannot continue to countenance UK exports filtering through to Putin and the cronies who facilitate his war machine, especially given the situation in and around Kharkiv at present.
I thank the Minister for setting out the measures, though, as I said, they could have come earlier. I hope that she can provide clarity on the concerns that I raised. Labour will continue to support further expansion of our sanctions regime, but it is becoming ever clearer that the actions that we take today will have lasting ramifications. In devising such actions in the next Parliament, we will strive to be even bolder, swifter and more ambitious.