Commons Sense

House of Commons · Westminster Hall

Republic of Belarus and the Russian Federation: Sanctions and Tariffs

08 March 2023 · 6 other contributors · 3,993 words

Opened by Siobhain McDonagh Lab Mitcham and Morden

Responding minister: David Rutley

UkraineForeign AffairsBusiness & Trade

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

Read the full transcript on Parliament.uk

At a glance

Siobhain McDonagh raised concerns about republic of belarus and the russian federation: sanctions and tariffs in Westminster Hall. A government minister responded.

Key points

  • Businesses in the constituency are facing competition from Belarusian goods that avoid UK sanctions by claiming Russian origin.
  • The debate highlights the exploitation of loopholes in sanctions lists by Russian and Belarusian entities to evade tariffs.
  • The hon. Member requests the Government to update the sanctions list and increase tariffs on metals to render goods from sanctioned countries uncompetitive.

Key requests to Government

I ask the Minister to address the detail of this issue and explain how we will close the loopholes that Russia and Belarus are using, ensuring our sanctions and tariffs are effective in practice. Additionally, I urge the Government to update the sanctions list and increase tariffs on metals, making goods originating from sanctioned countries uncompetitive.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Siobhain McDonagh Lab Mitcham and Morden

Businesses in my constituency have been impacted by sanctions evasion tactics employed by a Belarusian company. This company is circumventing UK sanctions on Belarusian goods by claiming that its products originate from Russia, allowing it to import sanctioned items without facing the additional tariff and thus undercutting local businesses. The case exemplifies how sanctions lists can be drawn up in such a way as to create loopholes exploited by Russian and Belarusian entities.

Other contributors (6)
  • Hywel Williams

    Grateful to add support to the hon. Lady's comments, concerned that sanctions are not being extended far enough, especially to countries in the developing world trading with Russia. An intervention inquiring how Russia is evading western sanctions through trading with developing or emerging market countries.

  • Iain Duncan Smith Con Chingford and Woodford Green

    Congratulates the hon. Lady on securing this debate and calls for an increase in the number of sanctioned individuals and businesses, emphasizing proper implementation. The MP questioned the inconsistency between Departments on sanction implementation and suggested treating Belarus and Russia exactly the same in their approach to sanctions.

  • Jim Shannon DUP Strangford

    Commends the hon. Lady for securing the debate and agrees that sanctions on Russia and Belarus must be increased to hurt oligarchs economically.

  • Jonathan Lord

    An intervention suggesting that making product lists the same for Belarus and Russia could undermine attempts to evade sanctions.

  • Marie Rimmer Lab St Helens South and Whiston

    The MP congratulated Siobhain McDonagh on securing the debate and asked the Minister about further action against individuals helping Russia bypass sanctions, citing Igor Zimenkov as an example.

  • Matt Rodda Lab Reading Central

    The MP expressed support for sanctions against Russia and called for a comprehensive package of action including continued UK Government support for Ukraine through military means.

Government Response

David Rutley

It is a pleasure to serve with you in the Chair, Ms Fovargue. I congratulate the hon. Member for Mitcham and Morden on securing this important debate and her commitment in broadly backing His Majesty's Government's approach to sanctions. The UK has co-ordinated with international allies to respond to Russia's unprovoked invasion of Ukraine, imposing over 1,500 individuals and entities since the start of the invasion. Since the year of Russia's full-scale invasion of Ukraine, the UK introduced an array of measures targeting trade, finance, military, and industrial sectors, reducing Russian goods imports by 99% between September and November last year compared to the same period in 2021. More than £20 billion of UK-Russia trade in goods is now under full or partial sanction. Tariff measures were also introduced tightening screws on Putin and his supporters. The latest package includes export bans on every item Russia has been found to be using on the battlefield, adding further weight to our response. To tackle circumvention, the Government and HMRC take all reported alleged sanctions violations very seriously indeed. Businesses play a crucial role in providing information about suspected breaches. Different regimes serve different foreign policy objectives, although there are links between Russia and Belarus sanctions; they are distinct. The UK has worked closely with international partners to maximise impact, demonstrating leadership in the most impactful areas such as designating top executives at Rosatom. We will continue to bear down on Russia and Belarus by implementing further sanctions and leaning in to tackle circumvention attempts.

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