Gavin Irwin comments on yesterday’s House of Commons Library Briefing Paper on the UK’s approach to financial sanctions against Russia
On 12th April 2018, the House of Commons Library published a Briefing Paper entitled ‘Sanctions Against Russia’.
The introduction to the Briefing poses the following question:
With the alleged chemical weapons deployment in Syria and the poisoning incident in Salisbury, pressure has increased for further sanctions against Russia. But what measures are already in place?
It begins by:
Sergei Magnitsky was a Russian lawyer who specialised in anti-corruption work. He was arrested in 2008 after alleging that there had been a large-scale theft from the Russian state, sanctioned and carried out by Russian officials. He died after being held in custody for almost a year without charge. During that time, he had been denied treatment for existing medical conditions and had been physically assaulted just before his death.
The original, 2012, US Magnitsky Act targeted only the Russian officials allegedly involved with Sergei Magnitsky’s mistreatment and death in custody. Later versions of the law provided for sanctions against violators of human rights, wherever located, and whatever the nature of the violation.
The current UK sanctions regime against Russia is derived, in large part, from the EU regime and is constituted of Crimea specific sanctions:
and sanctions of a more general nature:
All require periodic review.
However, in light of the Salisbury incident – the alleged poisoning, with a military-grade nerve agent, of Sergei Skripal and his daughter Yulia – the Briefing describes further action being considered by the UK authorities.
On 14th March 2018, the Prime Minister confirmed that the Government would table Magnitsky amendments to the Sanctions and Anti-Money Laundering Bill, currently before Parliament:
…to strengthen our powers to impose sanctions in response to the violation of human rights. In doing so, we will play our part in an international effort to punish those responsible for the sorts of abuses suffered by Sergei Magnitsky
Adding:
… we will continue to bring all the capabilities of UK law enforcement to bear against serious criminals and corrupt elites. There is no place for these people, or their money, in our country.
On 6th April 2018, the US Treasury Office of Foreign Assets Control (‘OFAC’) updated its Specially Designated Nationals List by adding a raft of Russian individuals and entities in relation to whom / which relevant financial transactions and activities are now prohibited. (Certain exemptions apply until 5th June 2018 provided that they relate to: Maintenance or Wind down of Operations or Existing Contracts; and/or, Transactions Necessary to Divest or Transfer Debt, Equity, or other Holdings in Blocked Persons.)
An immediate impact was felt on the share prices of the extractive industry giants Gazprom (energy), Polyus (gold), Rusal (aluminium), Norilsk Nickel and various Russian banking entities.
On 11th April 2018, the Times described OFAC’s action as:
It remains to be seen whether the UK’s Magnitsky amendments, and the alacrity with which they will be enforced, will measure up to OFACs extraordinary action.
On the 3rd November 2020, Kadian Nelson abducted and raped a 13 year old girl…
SUMMARY In 2017 a 24-year-old woman, Louella Fletcher Michie, died at the Bestival Music Festival,…