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.

I thank all noble Lords for their contributions today. It is great to follow the noble Lord, Lord Collins, and let me tell him, in the spirit of cross-party politics, that every morning I am proud to walk up the steps in King Charles Street, walk past the statue of...

I thank all noble Lords for their contributions today. It is great to follow the noble Lord, Lord Collins, and let me tell him, in the spirit of cross-party politics, that every morning I am proud to walk up the steps in King Charles Street, walk past the statue of...

Be careful.

Action has also involved talking to people who we do not agree with, including sitting down directly with the Iranian Foreign Minister and delivering some very tough messages about what Iran is doing in the region and around the world. I have also had some pretty frank bilateral conversations...

Be careful.

Action has also involved talking to people who we do not agree with, including sitting down directly with the Iranian Foreign Minister and delivering some very tough messages about what Iran is doing in the region and around the world. I have also had some pretty frank bilateral conversations...

I am very sorry. If I have time at the end, I will take interventions. It is a challenge to try to answer 63 speeches—I am determined to be equal to it.

The noble Lord, Lord Polak, made a powerful speech and I want to answer directly his question: do we...

I am very sorry. If I have time at the end, I will take interventions. It is a challenge to try to answer 63 speeches—I am determined to be equal to it.

The noble Lord, Lord Polak, made a powerful speech and I want to answer directly his question: do we...

You are very kind, thank you.

The most reverend Primate, the noble Lord, Lord Boateng, and a number of others made speeches about the importance of peacemaking. The Archbishop reminded us of an important fact when he mentioned that acronym of the Foreign Office preventing conflict, and building peace, and whatever...

You are very kind, thank you.

The most reverend Primate, the noble Lord, Lord Boateng, and a number of others made speeches about the importance of peacemaking. The Archbishop reminded us of an important fact when he mentioned that acronym of the Foreign Office preventing conflict, and building peace, and whatever...

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 attended the G7 Summit in Ise Shima, Japan, on 26-27 May. This was the 42nd G7 Summit, and the third without Russia since its exclusion in March 2014, following the illegal annexation of Crimea.

This was the first summit under Japan’s chairmanship since 2008. Under Prime Minister Abe’s leadership,...

I attended the G7 Summit in Ise Shima, Japan, on 26-27 May. This was the 42nd G7 Summit, and the third without Russia since its exclusion in March 2014, following the illegal annexation of Crimea.

This was the first summit under Japan’s chairmanship since 2008. Under Prime Minister Abe’s leadership,...

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 know that the whole House will join me in welcoming David Natzler as the new Clerk of the House. Mr Speaker, you went to the ends of the earth in search of the best candidate, but I am glad that we found the right answer right here in Britain.

Before...

I know that the whole House will join me in welcoming David Natzler as the new Clerk of the House. Mr Speaker, you went to the ends of the earth in search of the best candidate, but I am glad that we found the right answer right here in Britain.

Before...