To ask the Secretary of State for Foreign, Commonwealth and Development Affairs what assessment he has made of the effectiveness of UK sanctions on Russia, and in particular on the number of tankers and other ships trading in Russian oil despite those sanctions.

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs what assessment he has made of the effectiveness of UK sanctions on Russia, and in particular on the number of tankers and other ships trading in Russian oil despite those sanctions.

My Lords, sanctions by the United Kingdom and G7 partners have cost Russia an estimated $400 billion, equivalent to four years of war funding, and contributed to a 30% fall in oil tax revenues in 2023. In many ways, the existence of the shadow fleet is a sign that sanctions are working. They are forcing Russia to spend billions to try to circumvent them. The UK is investing in the Joint Maritime Security Centre to track shadow fleet activity, and we are finalising new powers to sanction individual vessels.

My Lords, sanctions by the United Kingdom and G7 partners have cost Russia an estimated $400 billion, equivalent to four years of war funding, and contributed to a 30% fall in oil tax revenues in 2023. In many ways, the existence of the shadow fleet is a sign that sanctions are working. They are forcing Russia to spend billions to try to circumvent them. The UK is investing in the Joint Maritime Security Centre to track shadow fleet activity, and we are finalising new powers to sanction individual vessels.

The noble Lord is absolutely right to raise this. As he knows, we have invested money in the Joint Maritime Security Centre, and that is making a difference. We have sanctioned Turkish and Emirati shipping company owners involved in facilitating this shadow fleet. We deploy our diplomatic network to deter third countries where we can, and we are working through the IMO. We are going to have the power to sanction individual vessels and their owners. However, the noble Lord is right to say that there is more we can do. Fundamentally, these are mostly uninsured, leaky, unsafe, environmentally unsound ships, and we should be going after them whenever and wherever we can. It is possible to do more, particularly when they potentially threaten environmental disasters in the countries they are going past. One of the things we want to do at the forthcoming European Political Community meeting is to work with partners to see what more we can do to take this weapon out of Putin’s hands.

The noble Lord is absolutely right to raise this. As he knows, we have invested money in the Joint Maritime Security Centre, and that is making a difference. We have sanctioned Turkish and Emirati shipping company owners involved in facilitating this shadow fleet. We deploy our diplomatic network to deter third countries where we can, and we are working through the IMO. We are going to have the power to sanction individual vessels and their owners. However, the noble Lord is right to say that there is more we can do. Fundamentally, these are mostly uninsured, leaky, unsafe, environmentally unsound ships, and we should be going after them whenever and wherever we can. It is possible to do more, particularly when they potentially threaten environmental disasters in the countries they are going past. One of the things we want to do at the forthcoming European Political Community meeting is to work with partners to see what more we can do to take this weapon out of Putin’s hands.

The noble Baroness makes a good point. There has been an effect on Russian revenue because of the price cap, but a lot of sales are still going through, using shadow tankers, and into other markets. One thing we are trying to do here to make sure that refined product does not leak back into the UK is to make sure that all importers of oil and oil products into the UK provide proof of origin to relevant enforcement authorities to demonstrate that the goods are not of Russian origin. We will do that, but, as I said in my earlier answer, there is probably more we can do with other countries and allies to chase down this shadow fleet wherever we can.

The noble Baroness makes a good point. There has been an effect on Russian revenue because of the price cap, but a lot of sales are still going through, using shadow tankers, and into other markets. One thing we are trying to do here to make sure that refined product does not leak back into the UK is to make sure that all importers of oil and oil products into the UK provide proof of origin to relevant enforcement authorities to demonstrate that the goods are not of Russian origin. We will do that, but, as I said in my earlier answer, there is probably more we can do with other countries and allies to chase down this shadow fleet wherever we can.

The noble Lord with all his experience makes a very good point. I will certainly take it away and discuss with colleagues across government whether there is more we can do to bear down on the price and whether that would be effective. It is worth remembering that we are talking about 600 ageing oil tankers transporting predominantly Russian oil around the world. They do not have the support of any G7 services, such as insurance, so whether it is insurance, sanctions, environmental measures or the price cap, we are looking at everything we can.

The noble Lord with all his experience makes a very good point. I will certainly take it away and discuss with colleagues across government whether there is more we can do to bear down on the price and whether that would be effective. It is worth remembering that we are talking about 600 ageing oil tankers transporting predominantly Russian oil around the world. They do not have the support of any G7 services, such as insurance, so whether it is insurance, sanctions, environmental measures or the price cap, we are looking at everything we can.

What I can say to the noble Baroness is that good progress has been made. To be frank, we would perhaps have gone for a more maximalist version of trying to use the frozen assets themselves, but the idea of taking the interest from the assets and using that for Ukraine to pay the interest on a larger loan—which could be as much as £50 billion—is the lead proposal at the moment, and is being discussed by Finance Ministers in the G7. I am confident that we will get there, but, as we do, it is very important to say that we do not rule out taking further action on the frozen assets themselves. We may well get to a time when Russia is, or should be, paying reparations to Ukraine for the damage that has been done. At that point, those underlying assets that we still hold could be very important.

What I can say to the noble Baroness is that good progress has been made. To be frank, we would perhaps have gone for a more maximalist version of trying to use the frozen assets themselves, but the idea of taking the interest from the assets and using that for Ukraine to pay the interest on a larger loan—which could be as much as £50 billion—is the lead proposal at the moment, and is being discussed by Finance Ministers in the G7. I am confident that we will get there, but, as we do, it is very important to say that we do not rule out taking further action on the frozen assets themselves. We may well get to a time when Russia is, or should be, paying reparations to Ukraine for the damage that has been done. At that point, those underlying assets that we still hold could be very important.

What I have done about it this. We have had discussions with the G7 Foreign Ministers, where I have been talking to all our allies about why we should be doing this—the economic case, the moral case, the political case. I think that is widely accepted, but there is nervousness, particularly in some of the European countries where a lot of the assets reside—a lot of them are held in Euroclear, for instance—about using the underlying assets straight away. That is where this idea comes in,

using the windfall interest from these assets to roll into something that is given to Ukraine so that it can pay the interest on a much bigger loan. That is the lead idea. We must not let the best be the enemy of the good; let us try to get the money out of the door and into the hands of Ukrainians so that they can pay for the war effort against Russia at this vital time. As I have said, that will not rule out looking at the underlying assets, which will of course still be frozen and will not be going back to Russia. We can look at those again later.

What I have done about it this. We have had discussions with the G7 Foreign Ministers, where I have been talking to all our allies about why we should be doing this—the economic case, the moral case, the political case. I think that is widely accepted, but there is nervousness, particularly in some of the European countries where a lot of the assets reside—a lot of them are held in Euroclear, for instance—about using the underlying assets straight away. That is where this idea comes in,

using the windfall interest from these assets to roll into something that is given to Ukraine so that it can pay the interest on a much bigger loan. That is the lead idea. We must not let the best be the enemy of the good; let us try to get the money out of the door and into the hands of Ukrainians so that they can pay for the war effort against Russia at this vital time. As I have said, that will not rule out looking at the underlying assets, which will of course still be frozen and will not be going back to Russia. We can look at those again later.

The best thing we have done is to announce that the £3 billion— the noble Lord is right about that figure—is not just for this year and next year but for as many years as Ukraine needs it. That gives us the ability, just as with the 2.5% spending pledge, to go to other partners in NATO and elsewhere and say, “We have made this pledge. If you make this pledge too, we can give Ukrainians the certainty they need that the money will be there to support not just the munitions but the vital economic measures that they need as well”.

The best thing we have done is to announce that the £3 billion— the noble Lord is right about that figure—is not just for this year and next year but for as many years as Ukraine needs it. That gives us the ability, just as with the 2.5% spending pledge, to go to other partners in NATO and elsewhere and say, “We have made this pledge. If you make this pledge too, we can give Ukrainians the certainty they need that the money will be there to support not just the munitions but the vital economic measures that they need as well”.

That is an excellent question. I will double check, but my understanding is that we are trying to track this shadow fleet wherever it goes, and use that information so that countries can use environmental legislation, insurance legislation and other legislation to confiscate shipments and stop them moving. That must be the case in our overseas territories, but I will double check that it is so.

That is an excellent question. I will double check, but my understanding is that we are trying to track this shadow fleet wherever it goes, and use that information so that countries can use environmental legislation, insurance legislation and other legislation to confiscate shipments and stop them moving. That must be the case in our overseas territories, but I will double check that it is so.

We have taken real action: we have sanctioned 2,000 individuals and entities under the Russia sanctions regime, over 1,700 of which were sanctioned since the full-scale invasion. We have taken huge steps. The point I would make is that there is a difference in scale, even with the riches of Abramovich—and we will come on to that—between the individuals who we have sanctioned and the Russian sovereign assets that are invested in things such as Euroclear and central banks in Europe and elsewhere. There is a difference in scale, and that is why the windfall interest from them is so important. On the issue of Abramovich, we are doing everything we can to try to make sure that this massive amount of money, which is in trust, can start flowing into Ukraine for the benefit of Ukrainian people and Ukrainian charities. It is a complicated issue—I can go into more detail if the noble Lord would like—but we are working very hard on it.

We have taken real action: we have sanctioned 2,000 individuals and entities under the Russia sanctions regime, over 1,700 of which were sanctioned since the full-scale invasion. We have taken huge steps. The point I would make is that there is a difference in scale, even with the riches of Abramovich—and we will come on to that—between the individuals who we have sanctioned and the Russian sovereign assets that are invested in things such as Euroclear and central banks in Europe and elsewhere. There is a difference in scale, and that is why the windfall interest from them is so important. On the issue of Abramovich, we are doing everything we can to try to make sure that this massive amount of money, which is in trust, can start flowing into Ukraine for the benefit of Ukrainian people and Ukrainian charities. It is a complicated issue—I can go into more detail if the noble Lord would like—but we are working very hard on it.

Lords motion to take note of the United Kingdom's position on foreign affairs. (Part 1 of 2).

Lords motion to take note of the United Kingdom's position on foreign affairs. (Part 1 of 2).

Lords motion to take note of the United Kingdom's position on foreign affairs. Agreed to on question. (Part 2 of 2).

Lords motion to take note of the United Kingdom's position on foreign affairs. Agreed to on question. (Part 2 of 2).

I am grateful to my hon. Friend for raising this issue. It was an honour to meet former President Nasheed, who I think did an excellent job for his country in cutting out corruption and turning that important country round. He suffered terribly from being in prison, and it is good that he is able to get out to seek medical treatment, but we want to see a change in behaviour from the Maldivian Government to make sure that political prisoners are set free. Yes, we are prepared to consider targeted action against individuals if further progress is not made. Let us hope that the diplomatic efforts, including by the Commonwealth action group, will lead to the changes we want to see. Britain and its allies, including Sri Lanka and India, are watching the situation very closely.

I am grateful to my hon. Friend for raising this issue. It was an honour to meet former President Nasheed, who I think did an excellent job for his country in cutting out corruption and turning that important country round. He suffered terribly from being in prison, and it is good that he is able to get out to seek medical treatment, but we want to see a change in behaviour from the Maldivian Government to make sure that political prisoners are set free. Yes, we are prepared to consider targeted action against individuals if further progress is not made. Let us hope that the diplomatic efforts, including by the Commonwealth action group, will lead to the changes we want to see. Britain and its allies, including Sri Lanka and India, are watching the situation very closely.

As I said yesterday, we play a leading role in ensuring that the supply of money, weapons and support is cut off. However, we should be clear about where ISIL got its money from originally. Because we did not have a Government in Iraq that effectively represented all their people, and because in Syria there is a leader who is butchering his own people, ISIL was able to get hold of oil, weapons, territory and banks, and they have used that to fund their hatred and their violence. We cannot dodge forever the question of how to degrade and destroy ISIL in both Iraq in Syria, and that is why I will be setting out my response to the Foreign Affairs Select Committee. Yes, we should go after the money and the banks, and cut off supplies to ISIL, but we should not make that a substitute for the action that is required to beat those people where they are.

As I said yesterday, we play a leading role in ensuring that the supply of money, weapons and support is cut off. However, we should be clear about where ISIL got its money from originally. Because we did not have a Government in Iraq that effectively represented all their people, and because in Syria there is a leader who is butchering his own people, ISIL was able to get hold of oil, weapons, territory and banks, and they have used that to fund their hatred and their violence. We cannot dodge forever the question of how to degrade and destroy ISIL in both Iraq in Syria, and that is why I will be setting out my response to the Foreign Affairs Select Committee. Yes, we should go after the money and the banks, and cut off supplies to ISIL, but we should not make that a substitute for the action that is required to beat those people where they are.

I will be talking to the emir very shortly, and of course we will discuss all these issues, particularly how we can work together to combat extremism. Qatar has recently introduced a new Act to ensure that charities are not abusing charitable status and giving money to inappropriate organisations, and we will want to ensure that that is working properly. I commend my hon. Friend for his persistence on this issue, because it really does matter that we work with all our allies to ensure that extremist and terrorist groups do not get the support that they seem to be.

I will be talking to the emir very shortly, and of course we will discuss all these issues, particularly how we can work together to combat extremism. Qatar has recently introduced a new Act to ensure that charities are not abusing charitable status and giving money to inappropriate organisations, and we will want to ensure that that is working properly. I commend my hon. Friend for his persistence on this issue, because it really does matter that we work with all our allies to ensure that extremist and terrorist groups do not get the support that they seem to be.

We have been very clear that we do not support boycotts and we do not support measures that are intended to delegitimise the state of Israel, which has a right to exist and which we argue has a right to peace within its proper borders. My hon. Friend makes an important point, which is that we should be absolutely clear that you can criticise Israel and the Israeli Government for their actions without being anti-Semitic, but in recent weeks we have seen a rise in anti-Semitic attacks in our country, and as I said on Monday, that is completely unacceptable.

We have been very clear that we do not support boycotts and we do not support measures that are intended to delegitimise the state of Israel, which has a right to exist and which we argue has a right to peace within its proper borders. My hon. Friend makes an important point, which is that we should be absolutely clear that you can criticise Israel and the Israeli Government for their actions without being anti-Semitic, but in recent weeks we have seen a rise in anti-Semitic attacks in our country, and as I said on Monday, that is completely unacceptable.

My right hon. Friend is absolutely right on that issue. We have set out a clear set of sanctions as a result of Russia’s behaviour towards Ukraine. We have taken a series of steps so far in terms of putting asset freezes and travel bans on named individuals. We have taken a series of diplomatic and other steps, and we have set out the so-called stage 3 sanctions that should be taken if further incursions and further destabilisation of south and eastern Ukraine are set out, and restrictions on arms sales should certainly be part of that.

My right hon. Friend is absolutely right on that issue. We have set out a clear set of sanctions as a result of Russia’s behaviour towards Ukraine. We have taken a series of steps so far in terms of putting asset freezes and travel bans on named individuals. We have taken a series of diplomatic and other steps, and we have set out the so-called stage 3 sanctions that should be taken if further incursions and further destabilisation of south and eastern Ukraine are set out, and restrictions on arms sales should certainly be part of that.

First of all, let us look at what we have already achieved in terms of amending the arms embargo. We asked specifically for it to be changed so that we could give technical support to the opposition. We have achieved that, but the French President and I discussed at the European Council looking for further changes to the arms embargo, which will be discussed by Foreign Affairs Ministers this weekend. The reason for that is twofold. First, that the arms embargo still applies pretty much equally to this hateful regime and to the opposition, who we now recognise as legitimate representatives of the Syrian people, sends a peculiar message. Secondly, the French President and I are concerned that we should not be restricted for months and months ahead when we do not know exactly what could happen in Syria—there are very worrying reports of the use of chemical weapons.

First of all, let us look at what we have already achieved in terms of amending the arms embargo. We asked specifically for it to be changed so that we could give technical support to the opposition. We have achieved that, but the French President and I discussed at the European Council looking for further changes to the arms embargo, which will be discussed by Foreign Affairs Ministers this weekend. The reason for that is twofold. First, that the arms embargo still applies pretty much equally to this hateful regime and to the opposition, who we now recognise as legitimate representatives of the Syrian people, sends a peculiar message. Secondly, the French President and I are concerned that we should not be restricted for months and months ahead when we do not know exactly what could happen in Syria—there are very worrying reports of the use of chemical weapons.

The Leader of the Opposition puts the point absolutely rightly. There is widespread concern about the nature of the opposition. The argument we must engage in is this: are we more likely to help the good elements of the opposition by standing back, or are we more likely to help by getting in there and shaping and giving that technical assistance, so that we can play a part in building up the Syrian opposition, so that they are a legitimate and credible alternative to this hateful regime?

It is worth recalling—we should all recall it—the fact that current policies are not working for the people of Syria. Seventy thousand people are dead and this hateful regime is still in place.

The Leader of the Opposition puts the point absolutely rightly. There is widespread concern about the nature of the opposition. The argument we must engage in is this: are we more likely to help the good elements of the opposition by standing back, or are we more likely to help by getting in there and shaping and giving that technical assistance, so that we can play a part in building up the Syrian opposition, so that they are a legitimate and credible alternative to this hateful regime?

It is worth recalling—we should all recall it—the fact that current policies are not working for the people of Syria. Seventy thousand people are dead and this hateful regime is still in place.

We are taking specific steps to help the UN with this vital initiative. Trying to achieve a diplomatic solution, with transition at the top of the regime, is worth while. That is why we have had detailed talks with the Russian Foreign and Defence Ministers in the past week. I would just make one other point about the arms embargo. Sitting in the European Council chamber, I felt that there was a slight similarity between some of the arguments being made about not putting more weapons into Syria and the discussions we had on Bosnia, with the appalling events that followed. In my view, it is better to be engaged and working with the Syrian opposition and trying to bring this conflict to an end.

We are taking specific steps to help the UN with this vital initiative. Trying to achieve a diplomatic solution, with transition at the top of the regime, is worth while. That is why we have had detailed talks with the Russian Foreign and Defence Ministers in the past week. I would just make one other point about the arms embargo. Sitting in the European Council chamber, I felt that there was a slight similarity between some of the arguments being made about not putting more weapons into Syria and the discussions we had on Bosnia, with the appalling events that followed. In my view, it is better to be engaged and working with the Syrian opposition and trying to bring this conflict to an end.