My Lords, I very much welcome these additional amendments on further sanctions. I certainly welcome the fact that we are focusing on trying to weaken the war machine that this illegal invasion of Ukraine is supporting. I certainty welcome Regulation 5, on luxury goods, too.
In the previous debate, the Minister mentioned the Office of Trade Sanctions Implementation, which aims to crack down on sanctions evasion. I very much welcome that because, as I mentioned, we have seen before evidence of companies circumventing the sanctions. He also mentioned the toolkit, which will, I hope, enable us to avoid repeating some mistakes made in the past. It would be good to better engage on how we will support this new office.
One thing that the noble Lord, Lord Purvis, has raised previously is this: how do we ensure that Britain’s offshore financial centres are properly able to implement the sanctions? Of course, we have been extremely concerned about transparency and the need to introduce public beneficial ownership registers speedily. Without them, we will not be able to see exactly what UK firms or individuals are up to. With opaque entities, sanctions will sometimes be evaded, though perhaps not deliberately. We need to address this properly.
The Government recently updated Parliament with another timeline for the expected delivery of public registers. However, I note that the British Virgin Islands will not have its appropriate frameworks in place as late as 2025. I hope that the Minister will express the same opinion as me: that this is too late and we really need to speed things up.
The noble Lord, Lord Purvis—I nearly called him Lord Putin then—mentioned frozen assets. We will certainly address them in our debate on Friday. Since we also raised this issue in Oral Questions, I note that the Foreign Secretary—the noble Lord, Lord Cameron—mentioned his belief at Davos that frozen assets are an issue that need international co-operation. Can the Minister give us a bit more detail on that?
The noble Lord, Lord Purvis, also referred to the stats that were mentioned by the Minister. I have here a letter dated 19 January from Anne-Marie Trevelyan. It repeats those figures but she says that we have
“sanctioned more than £20 billion of UK-Russia goods trade, contributing to a 99% drop in UK goods imports from Russia and a 82% drop in UK goods exports to Russia”.
I do not know why there is a difference there, especially as it is so recently put. I welcome that letter because it gives a lot of detailed information. One thing that Minister Trevelyan says, in referring to metals, diamonds, oil and stuff, is what we have addressed before: the leakage that seems to happen, particularly with luxury goods. Her letter says:
“The UK, EU and US have sent joint delegations to the UAE, Kazakhstan … Uzbekistan, Georgia, and Armenia, and we have delivered senior bilateral engagement with Turkey and Serbia, yielding positive results”.
I am not sure from the letter whether we have received positive results from all of these visits.
I was in Tbilisi late last year, and I noted that there was a big increase in the import of luxury cars into Georgia. It was also reported that, since the war, trade going from Georgia into Russia has increased, despite its public position. I welcome the fact that we have sent delegations and that the Minister is saying that there are positive results, but can he tell us exactly what they are? Even from my observations, it certainly looks as though there is an ability to evade sanctions.
With those brief comments, I reiterate the Opposition’s position: we are absolutely at one with the Government in supporting Ukraine and ensuring effective sanctions against Russia’s illegal invasion. We welcome these amendments to the sanctions regulations.