Extracts from Parliamentary proceedings: Nord Stream 2 - Feb 23

Extract from oral answer (Lords) on Ireland: Russian Naval Military Exercises

Baroness Smith of Newnham (LD): My Lords, the Chancellor of Germany made a major statement yesterday about Nord Stream 2  If Her Majesty’s Government are trying to act in lockstep, should not the sanctions against Russians in London, and other sanctions be of a similar magnitude to those introduced by Germany?

The Minister of State, Department for the Environment, Food and Rural Affairs and Foreign, Commonwealth and Development Office (Lord Goldsmith of Richmond Park) (Con): My Lords, we greatly welcome the announcement from Germany—indeed, the Government have long argued against the project proceeding for precisely the reasons that have now become clear. We are clear that yesterday’s announcement in the UK represents the first wave of sanctions, which target some of the individuals and entities closest to the Kremlin. We are co-ordinating with our allies around the next steps, and we will continue to work with our partners to build the most powerful set of financial sanctions ever imposed on any major economy.

To read all the exchanges, CLICK HERE

Extracts from Commons debate on Countering Russian Aggression and Tackling Illicit Finance

Mr David Lammy (Tottenham) (Lab):...Labour would go deeper, broader, stronger and faster on sanctions. The Government’s targeting of just five banks and three individuals is simply not enough. They claim that these are the toughest ever sanctions on Russia, but, after the annexation of Crimea, the UK froze the assets of almost 200 individuals and 50 entities alongside a range of other measures. Labour would go much further. We would increase the depth of sanctions by targeting more oligarchs and more banks. We would increase the breadth of sanctions by widening the measures beyond just asset freezes to sectoral measures, blocking dealing in Russian sovereign debt and banning the fake-news producing Russia Today. We would ramp up the speed of sanctions—we would not wait for Putin’s next act of war but introduce the full set of sanctions now. We would increase their coherence, moving in lockstep with our allies who have sanctioned more people more quickly than us. We would have stopped Nord Stream 2 and targeted Belarus as well, and we would make our sanctions stronger by targeting the systems people operate in as well as individuals. That means reforming Companies House so that it is fit for purpose, creating a register of overseas owners of UK property, as has been mentioned, delivering a strong economic crime Bill, as has been mentioned time and again, and implementing the recommendations of the Russia report finally in this House...

Hywel Williams (Arfon) (PC): I agree with the Minister’s fine words, but two weeks ago, the Prime Minister told the House, on Ukraine, that the UK’s role was “to lead the West”. In the meantime, Germany has put Nord Stream 2 on hold indefinitely. Today, the European Union has sanctioned Duma deputies, the Russian Defence Minister and the Russian air force and Black sea fleet commanders, and it has brought in asset freezes and sanctioned 23 individuals, five banks and an internet troll factory. The USA has also extended sanctions. Is the UK actually leading the west?

The Minister for Asia and the Middle East (Amanda Milling):...To pick up on the point about Nord Stream 2  we welcome Chancellor Scholz’s strong response to Russia’s egregious actions: Germany’s decision to suspend Nord Stream 2  We in Europe must now wean ourselves off dependence on Putin’s oil and gas. For example, in 2020 less than 3% of the UK’s total gas supply came from Russia...

Alison Thewliss (Glasgow Central) (SNP):...It was billed that, post Brexit, the UK would be able to act in a nimble fashion and sanction more and more individuals as it saw fit, but it seems that we are not even going as far as the EU. Germany’s ending of Nord Stream 2 yesterday was a hugely significant move. European Union Foreign Ministers agreed unanimously on Tuesday to sanction 27 Russians and entities, as well banks and the defence sector, and to limit Russian access to European capital markets. The EU’s measures will also target as many as 351 members of the Russian Duma, as well as individuals and businesses linked to Russian actions in the separatist regions...

Mr John Baron (Basildon and Billericay) (Con):...It may be that we are not party to deliberations on the calibration of the response from western allies, and it may be that Nord Stream 2 was phase one and the City of London withdrawing its facilities will be a further step. In the absence of knowing what those deliberations are, the Government, on the face of it, have clearly not done enough in response through these petty, small sanctions considering the scale of the crime itself—the invasion of a sovereign, democratic country...

Danny Kruger (Devizes) (Con):...The same applies to the impact on wholesale gas prices, which will naturally ensue as European countries in particular restrict their imports of Russian gas. That is necessary. Thankfully, we are not dependent on Russian gas to the same extent as our friends in Europe. I commend Germany for its brave decision to suspend Nord Stream 2  I hope that that will become a permanent commitment...

Fleur Anderson (Putney) (Lab):...Labour would also implement all the recommendations of the Russia report. We would push for Russia to be excluded from financial mechanisms such as SWIFT and ban trading on Russian sovereign debt. We would tackle Putin’s campaign of misinformation. We would work with our European allies to ensure that the Nord Stream 2 pipeline is cancelled. We would take steps to ensure a robust and transparent register of beneficial owners of overseas entities. We would urgently reform Companies House. We would bring in the economic crime Bill that has been promised for six years. We would fix unexplained wealth orders. We would also not leave the sanctions at just three oligarchs and five banks, which shows that we have one weak and out-of-touch Government. By contrast, the EU has announced sanctions for the 351 Duma members and, in the US, Biden has already announced sanctions on the country’s sovereign debt. Our allies are going further than us. To say that we have to go in step with them is just an excuse; actually, we are not in step. I hope that the Minister will say something about that...

For context, CLICK HERE