Today the House of Commons is debating all stages of the Economic Crime (Transparency and Enforcement) Bill. This is a hugely important Bill will ensure the measures we take to tackle financial fraud, or those funding or assisting conflict such as in the Ukraine, can be applied swiftly and directly to achieve their full aim.
It is clear that the sanctions we have applied to date are having an immediate and severe effect on the Russian economy. As part of a coordinated efforts by allies in NATO and the G7, and supported by the withdrawal of services from a large number of international businesses, Russia has already had to taken steps with limit withdrawals of money from the country. The hope is that this limits the ability of Putin to fund his war, and the ban on exports which could be used for the military will prevent him from being able to maintain current operations.
But this will not bring immediate results for the people of Ukraine, and every day we see more heartbreaking stories of civilians bombed and killed, families torn apart and over 1 million European citizens having to flee their homes in fear of their lives. As a father I cannot imagine having to say goodbye to my family as they risk the journey through a conflict zone, not knowing if I would have the opportunity to see my children grow up. This tragedy is unfolding right in front of us. We must do even more to support those suffering, to increase the sanctions and the economic cost of this war for Russia and Belarus, in the hope this will bring them to the negotiating table and stop this senseless conflict and bloodshed.
The Bill debated today will reduce time limits for businesses to declare true ownership of companies and assets. I support these proposals, and we must ensure that where we take action it is swift and effective, and its impact is felt as intended.
We also need to go further still and place an embargo on Russian oil and gas, and I have written to the Foreign Secretary, Liz Truss MP, to press for an embargo. While this will mean even higher prices, and we will have to find ways to support those hardest hit, we cannot continue to fund the Russian state and war machine in this way.
So, we will also have to address directly the difficult reality that by hurting the Russian economy we will also affect global trade and our own economy. The measures we take will have negative impacts at home too, which we are already seeing through rising energy costs and warnings over the impact the conflict will have on food costs. I know this is difficult, especially when already facing huge increases in energy prices and following from the disruption and economic consequence of the pandemic. But this cannot be a reason not to act to support the Ukrainian people, and frankly, if we don’t act now things are only going to get worse.
Unfortunately, I cannot be at today’s debate in Parliament as I recently contracted covid. While there is no longer a legal requirement to self-isolate, I am following the public health guidance to stay at home and avoid contact with others. However, I will continue to support the strongest measures to address this crisis, tackle financial fraud, and press for even further sanctions against Russia until their hostilities cease.
