Russian Shadow Fleet

My Lords, I begin by expressing my huge admiration for all those personnel involved in the seizure of the “Smyrtos” at the weekend, from the Royal Marine commandos and officers of the National Crime Agency to the sailors of HMS “Sutherland” and HMS “Ledbury” and the airmen aboard the Poseidon P-8 and the Merlin and Wildcat helicopters. They executed their duties with characteristic—indeed, exemplary—professionalism, and I thank all involved. It is welcome that the Government have finally begun interdicting sanctions-busting Russian ships, and that is the right move to disrupt Putin’s war machine, to degrade Russia’s efforts to undermine Britain’s security, and to help our allies in Ukraine. It is the duty of all political parties to stand by the Government in their efforts to help Ukraine defeat Putin’s vicious invasion. But many unanswered questions remain. The Government announced back in March that they would start boarding and seizing vessels of the Russian shadow fleet, and yet the first instance of such action occurring was this past weekend, so why the delay? The new Secretary of State for Defence failed to answer this question from my honourable friend James Cartlidge in the other place, so I hope the Minister will do better. Why did it take so long to start boarding these sanctioned law-breaking vessels? Surely it does not take three months to plan for one operation. According to the BBC, there have been at least 94 instances since March of shadow fleet vessels crossing into British territorial waters without being interdicted, and that is in addition to almost 200 that have entered our exclusive economic zone. That is 94 vessels carrying sanctioned Russian oil that have been allowed to pass unimpeded through our waters, with the cash flowing directly back to Putin. That is not acceptable. Shortly after the Government announced that British forces would be boarding these vessels, we heard reports that the Attorney-General, the noble and learned Lord, Lord Hermer, was bizarrely concerned about breaching international law. The Government were very coy about responding to that allegation and refused to respond to my honourable friend David Reed when he asked that question on 13 April. Can the Minister confirm whether concerns about international law were holding the Government back and causing this delay, and if so, how has this situation changed? Can the Minister tell the House whether this is a one-off, or will the Government start hitting every ship of the Russian shadow fleet that enters British waters? There have been further reports that after the operation at the weekend, six shadow fleet vessels that were heading for the channel have now turned round. There seems to be a likelihood that they may head up through the North Sea and around Scotland. This, of course, elongates their journey, but if they are permitted to continue, they will still reach their destination, offload their illegal oil and send that money back to Russia. So will the Government intercept vessels making that journey north? Finally, this all leads back to resource. The Minister and I have had many exchanges on this topic recently, so he is fully aware of my position, but I have to repeat it. If we are to continue seizing Russian vessels; if we are to play a leading role in keeping the Strait of Hormuz open, as the Prime Minister announced today at the G7; if we are to maintain a military presence abroad, particularly in our overseas territories; and if we are to continue to deter our adversaries, our Armed Forces must have the funding they truly require. The funding they truly require far exceeds that which the Government have committed to date. We know that the Chief of the Defence Staff has asked for £28 billion as a minimum. Why will the Government not commit to that level of funding for the defence investment plan?

My Lords, the boarding of the “Smyrtos” was conducted speedily, efficiently and without any casualties. It is a real credit to our Armed Forces. We all agree that it was a very impressive effort, and we should be grateful to them, but it is the first that has happened, as the noble Baroness has pointed out. My understanding is that the “Smyrtos” was operating under a Cameroonian flag, but Cameroon abruptly purged 36 shadow fleet vessels from its shipping registry last week. Can I ask where the other 35 are, and indeed who is pursuing them, and who is going to take any action to block them, deter them or prevent them from completing their journey towards Russia? What are we doing, either by ourselves or in co-ordination with others, to ensure that collectively we stop this shadow fleet? If you are talking about that number of ships, there is a huge amount of oil that is still being got through to Russia and that Russia is using to finance the Ukraine war. On the oil that has been seized—which I think is 100,000 tonnes—what will happen to that? I assume that it will be sold on the market, but will those funds go to Ukraine to compensate it for the war? I hope the Government will consider that. Does this not also raise the case to lift the waiver on Russian fossil fuels now, rather than at the end of the year? Is it not quite ironic that we are launching military escapades to capture shadow ships while at the same time allowing oil to go to Russia legally? That is a huge contradiction, and a total lack of common sense. So I ask the Government: what are we doing to try to eliminate this shadow fleet—not by ourselves, but collectively with our allies? What are we doing to end the Russians’ waiver and apply the sanctions? Can we ensure that any oil seized is used for the benefit of the Ukraine war effort?

My Lords, I thank the noble Lord and the noble Baroness for the comments that they have made. I particularly thank the noble Baroness for her thanks—and I know it is a sentiment shared by us all—to our Armed Forces for the work that they did. It is important that we recognise that, as well as the military, specialist officers from the National Crime Agency were involved. I know that noble Lords will join me in thanking them for the work that they did as well. I will share a factual update which may be of use to the House, before I come to the questions that have been posed by the noble Lord and the noble Baroness. One Indian national who was the captain of the ship has been arrested and is currently at Bournemouth police station. There were a further 24 Georgian and Indian crew on the vessel. The ship has been seized and is currently off Weymouth, and all those 24 members of the crew remain on the ship. The ship, having been seized, is now under the control of the Department for Transport. Many noble Lords will be aware of some of those facts, but they are worth repeating for the awareness of noble Lords, and there may be questions that will come from them. I am not sure that I am going to do a lot better than my right honourable friend in the other place—I am not sure that the noble Baroness expects me to—but the situation is that the Prime Minister made the statement about acting when all the circumstances aligned, and when preparations were made. It was based on the briefing from the military and others that this was the right time to act, and it was a time when we could act. In the way that it was conducted, no shots were fired, and nobody was injured or hurt, but it was the right time to act, and that is why we did. That is the answer to the noble Baroness’s question; I am not sure that she will be totally satisfied, but that is the answer. As far as I am aware, there has been no problem with respect to the law or being held back because of the law. The Government have always said we will act in accordance with the law, and there has been no barrier to action with respect to that. This operation was conducted totally in accordance with the law. In answer to the noble Baroness’s question about whether this was a one-off, no, it was not a one-off. This was a purely UK personnel operation, and we will take action at any point, should it be appropriate. If the advice that we receive from our military and others is that it is appropriate, of course we will act. The noble Baroness is right to say that the action was a deterrent. Some ships were immediately rerouted, with some veering off around the English Channel past Cornwall. It is my understanding, as she is right to point out, that other ships moved around the top of Scotland. We keep under consideration any other activity that we may wish to undertake. I stress the importance of the noble Baroness’ s point that we must show that we will act. It is important for others to hear that from this Chamber. We will act when all the circumstances are right, when all the legalities are in place, when the military capability is there and when the military advice that we receive says that it is appropriate to do so. None the less, the noble Baroness’s point about deterrence is really important, so I say again that this should not be seen as a one-off. The Government will act, with the support of everyone, where that action is appropriate. More generally, on the noble Lord’s point, we have sanctioned 570 ships and we assess that some 200 of them have been restrained to port—in other words, they have become non-operational. I am aware of the actions to which the noble Lord referred, but sanctioning ships is also important. In answer to the noble Lord’s question, of course we always work with others. We liaised with others on this operation, but it was led by the UK. He will know of other operations off our own coast, where we supported the Americans, and recently in the Mediterranean, where we supported the French. There is a lot of work going on, in which we act in the way that the noble Lord suggests. We work hard to ensure that we do all we can to impact Russia economically. In this respect, it is oil, but there are other ways to ensure that we undermine Russia economically to have an impact on the war in Ukraine and to ensure the defence of our own country. What happens to the oil will be considered by the Department for Transport, which will no doubt have heard the noble Lord’s point on that. The noble Baroness made a point at the end of her question about resources. I cannot add a lot to what I have already said on that, other than to repeat a point that I often make: the defence budget has gone up. From memory, it was approximately £60 billion in 2024-25, and it will be £73 billion in 2028-29. That is before we get the uplift from whatever happens with the DIP and, following the Prime Minister’s comments to the BBC, the spending review in 2027, when defence will be the number one priority. We should be under no illusion about the actions that we have seen recently and the many others that we have seen in the Middle East and the north Atlantic, and the various other operations that take place. Notwithstanding the debate about resources and their adequacy or not, it is important to recognise, as I know your Lordships do, the significant amount of activity that our Armed Forces conduct on our behalf, in Europe and around the world. It is important to recognise that, notwithstanding the present challenges.

While the Minister may have handed this off to the Department for Transport, can he comment on the likely fate of the crews of the ships that are being detained and on the future expectation of what will happen to the oil and to the ships themselves, many of which may be poorly maintained? I have a vision of our anchorages becoming full of these oil-filled rust buckets, which pose a real risk to our maritime environment. Anyone who remembers what happened with the Armada will know what happened to the ships that tried to go around the north of Scotland and down the coast. That poses a substantial environmental risk to us, should one of them come to grief. Could the Minister comment on that?

I can comment on the environmental risk. Obviously that is important, and we will do all we can to ensure that we do not see any adverse impact or consequence of what we have done in that respect. As I have said, apart from the captain, who is in custody with the police in Bournemouth, the 24 others remain on board. The only legal way that they could come on to the UK mainland would be if they were to be repatriated—in other words, if they were coming here to be sent back to their country of origin. That answers that specific point. As for the ship, then noble Lord will remember the “Bella 1”, which was interdicted a few months ago. It was just off the coast of Scotland for a time, but, as I understand it, it is now in the Caribbean, far away from our shores. That is, I hope, an example of how, while we deal with the specific consequence of the interdiction, we are mindful of the potential environmental consequence. We are also mindful of what we do with the crew, but we do not want any environmental damage from the ships. However, that should not alter the fact that we will take action where we need to do so.

To deter these ships, surely it is important that the Government tell them what would happen to their cargo and what would happen to their vessel if they persist.

The noble Lord is right to raise that. Let us be clear that the Department for Transport will ensure that the way in which the oil is dealt with in no way benefits the Russian war effort. That is a matter for the Department for Transport. One of the important things is to make sure that we as a country stand up for the law. The noble Lord will appreciate that the really important point is for Russia to understand that we will not stand idly by, whether that means sanctioning ships or taking action where we need to.

The Minister has stated that the reason why this ship was stopped and many others were let through was that the circumstances aligned. Does he mean to say that, when all the other ships went through our territorial waters, for none of them did the circumstances align?

Without going into the criteria, which would benefit only those who seek to circumvent the work we are trying to do, all I can say to the noble Lord—he will know this from his own experience—is that I receive advice from people who are much more qualified than I am to say what is and is not an appropriate way to act in the circumstances. We had advice from a wide range of people that this was an appropriate sanctioned vessel for which we could take action, at minimum risk to our own personnel, ensuring that we could be effective in what we did.

I join my noble friend in commending those who were responsible for this remarkable operation and the success that it represents. I also commend the Prime Minister, who today announced further sanctions on Russia, tightening further the screws on Vladimir Putin and his regime. Can we be assured that the Government will continue now to look at any of the loopholes that may be being used by people to provide money that allows Vladimir Putin to continue this dreadful war against Ukraine and the Ukrainian people?

I thank my noble friend for his question. He is right to point out that this is an important action by the Government, but it has to be seen alongside all the various other actions that were taken, which I know are supported by all noble Lords in this House. I agree with him about looking at any loopholes that might exist, as well as at what further sanctions we might take. The Government and the Prime Minister are keen to do that. It is important to say that, notwithstanding what is happening in the Middle East and in other parts of the world, our determination to continue to stand with Ukraine in defence of its territory against the illegal invasion by Putin—I know this is a sentiment shared by all—remains absolute. That is a really important point.