Commons Sense

House of Commons · Ministers' Questions

Financial Sanctions Regime

Tuesday 20 June 2023 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 5 Not answered 0

Key points

  • The Government assesses the financial sanctions regime as effective, eroding Russia's financial base through sanctions on banks and asset freezes.
  • The Office of Financial Sanctions Implementation works with G7 allies to coordinate sanctions and has frozen assets of 1,600 individuals and entities.
  • The Minister is willing to expedite applications and is expanding OFSI resources to improve efficiency in handling sanctions-related matters.

Topics (select to filter)

Questions & Answers

Q1 Rachel Hopkins Lab Luton South and South Bedfordshire
Foreign Affairs
Context

Constituents have raised concerns about the impact of the financial sanctions regime.

Question

What recent assessment has been made of the effectiveness of the financial sanctions regime?

Answer from John Glen

The Government undertake extensive assessment of the sanction regimes, which are eroding Russia's financial base. We have sanctioned 28 Russian banks covering 80% of Russia's banking sector and frozen more than £18 billion of Russian assets, and we have implemented unprecedented trade sanctions in addition.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q2 Rachel Hopkins Lab Luton South and South Bedfordshire
Taxation Foreign Affairs
Context

Concerns raised about Russian account holders holding assets over £50,000 in their accounts.

Question

Can the Government confirm whether it is still the case that Russian account holders in the UK can hold £50,000 or more in their accounts? What is to prevent individuals of concern from simply parcelling up assets through proxies into a large network of accounts below the permitted level?

Answer from John Glen

The Office of Financial Sanctions Implementation works closely with our allies across the G7 to ensure that we have co-ordinated action among our international partners on this unprecedented package of sanctions. We have frozen the assets of 1,600 individuals and entities. We have implemented 35 different sanction regimes across government. I would be happy to take away the specific question she has asked, because it is technical, and respond.

Partly answered

Not addressed: Did not provide confirmation or clarification on asset limits for sanctioned individuals.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q3 David Mundell Con Dumfriesshire, Clydesdale and Tweeddale
Business Compliance
Context

A start-up project in the constituency is at risk due to a pending asset freeze license application.

Question

What steps is the Minister taking to ensure that such applications are dealt with swiftly? If I provide him with details of the company, will he ensure that the application's progress is expedited?

Answer from John Glen

I am happy to take up my right hon. Friend's case. We have expanded the OFSI resources. We have a monthly monitoring and efficiency dashboard. I accept how frustrating it can be for constituents' businesses when such situations arise, and I am happy to take the matter away and get back to him swiftly.

Partly answered

Not addressed: Did not provide specific steps or commitment on expediting an application.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q4 James Murray Labour (Co-op) Ealing North
Foreign Affairs
Context

Continued efforts are needed to tighten the net on Russian oligarchs and their enablers.

Question

Can the Minister confirm whether those measures will close all the loopholes, specifically the ownership thresholds that Russian oligarchs and their enablers have been able to exploit to evade sanctions?

Answer from John Glen

The Government will be relentless in their pursuit of illicit assets. We have sanctioned 24 banks with global assets of over £940 billion and 120 elites with a combined worth of £140 billion. Working closely with our allies, we have incrementally and sequentially tightened that net and immobilised more than 60% of Putin's war chest of foreign reserves worth £275 billion.

Partly answered

Not addressed: Did not confirm closing all loopholes or specific ownership thresholds.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q5 Robert Syms Con
Economy Taxation Employment
Context

Some constituents lost their jobs because companies they worked for were owned by sanctioned Russians.

Question

May I have a word with the Minister about cases where people have not been able to get P60s due to difficulties in obtaining loans from banks, affecting businesses that cannot pay accountants?

Answer from John Glen

Those points demonstrate how serious and extensive the Government's actions are, but I recognise that sometimes unfortunate situations arise and I am happy to look at that case and take it back to the Office of Financial Sanctions Implementation.

Partly answered

Not addressed: Did not provide commitment or concrete steps for intervention.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q6 John Cryer Lab
Foreign Affairs
Context

Am I right in thinking that the Minister is prepared to examine the possibility of taking action against proxies and those persons of interest who use proxies?

Question

To pursue the issue of proxies raised by my hon. Friend, am I correct in understanding that he is prepared to examine the possibility of taking action against proxies and individuals using them?

Answer from John Glen

The Government are committed to an ever-tighter grip on illicit finance and those individuals close to Putin who make a material contribution to his regime. I am happy to receive representations on whatever case he wishes to bring to me, but I will not commit on the Floor of the House to individual extensions.

Partly answered

Not addressed: Did not confirm examining or taking action against proxies directly.

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email