Contribution
The first point of call is to ensure that all our allies who support our efforts to try to defeat Putin’s aggression deliver on those sanctions. Along with all the other nations, we are working through the multilateral system—particularly at the United Nations; I did so last month—to ensure that our concerns are fully recognised and that we uphold international law. I hear what the noble Lord says but that is the effective route we have to address.
The noble Lord, Lord Alton, raised the question of Chelsea. I thought that he must be back-reading Hansard because he knew that I had focused on that issue when I was the shadow Minister. Let me be clear: this Government are working hard to ensure that the proceeds from the sale of Chelsea Football Club reach humanitarian causes in Ukraine as quickly as possible. The proceeds are currently frozen in a United Kingdom bank account while a new independent foundation is established to manage and distribute the money.
The United Kingdom’s unilateral declaration makes it clear that we will only issue a licence which ensures that the money from the sale is used for exclusively humanitarian purposes in Ukraine. This Government are fully committed to that position as part of our iron-clad support for Ukraine. UK officials continue to hold discussions with Abramovich’s representatives, experts and international partners, and we will double down on our efforts to reach a resolution. The fact that we want to ensure and guarantee where that money goes is key to delivering on that.
The noble Lord, Lord Purvis, and others asked how we are immobilising Russian sovereign assets, particularly regarding the actions of others such as the US and Canada. The fact is that the impact of that has not actually happened. The real impact is what we have been able to agree within the G7; it is working with G7 partners that guarantees that the amount of money we are determined to give to Ukraine will be delivered.
The noble Lord raised the question of insurers. Here, I have to repeat the script: with regard to insurance providers, we cannot comment on plans for future sanctions, not least because, as we know and as the noble Lord, Lord Ahmad, used to say, if we announce them, the people who want to evade them will have adequate notice, so I cannot comment. However, we have sanctioned Russian insurers such as Ingosstrakh. We believe that tackling tankers through insurance has been impactful, so we will continue to monitor that, but I have no doubt that we will have to keep it under effective review.
I will obviously follow up with a letter on the India trade agreement, having consulted with my colleagues in the Department for Business and Trade. I will also write on the broader issue of legal services, another point raised by the noble Lord, Lord Purvis.
I think it was the noble Lord, Lord Vaux, who raised the impact on the shadow fleet and Russian oil supply. Ship specifications, together with US and EU action, have disrupted Russia’s shadow fleet, which it spent over £8 billion on purchasing. We are determined that it will have and has had an impact. UK and partner sanctions have forced many of the sanctioned tankers to cease their irresponsible trade in Russian oil. We will closely monitor how sanctions impact specified ships and the wider impacts on Russian oil trade and oil markets. I do not want to keep repeating myself, but we have proved that this is a sharp tool that is exacting a price. Each specification must be robust and proportionate to our objectives.
The key element is enforcement, as I have raised. It is one thing to introduce regulations to say that we will sanction, and good to have a regime of laws and regulations, but those regulations are meaningful only if we are able to properly enforce them. We are committed to significantly strengthening our sanctions enforcement tools. For example, we have introduced new civil monetary penalties for transport and certain trade sanction breaches.
The new Office of Trade Sanctions Implementation, which was launched on 10 October—another issue that I raised with the previous Government was about the speed of that—is now in place, with enhanced civil enforcement powers to maximise the impact of our trade sanctions. Those new powers will include civil monetary penalties to make the details of breaches public. The Government are committed to doing whatever is necessary to clamp down on sanctions offenders. The introduction of additional capacity, which is a key element, and the powers are starting to pay off. We are seeing an increase in the reporting of suspected breaches, which we expect to result in further fines and referrals for prosecutions.