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Dáil Éireann díospóireacht -
Tuesday, 28 Feb 2023

Vol. 1034 No. 3

European Union Directive: Motion (Resumed)

Debate resumed on the following motion:
That Dáil Éireann approves the exercise by the State of the option or discretion under Protocol No. 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, to take part in the adoption and application of the following proposed measure:
Proposal for a Directive of the European Parliament and of the Council on the definition of criminal offences and penalties for the violation of Union restrictive measures,
a copy of which was laid before Dáil Éireann on 19th December, 2022.
- (Minister of State at the Department of Housing, Local Government and Heritage, Deputy Malcolm Noonan).

I thank the Ceann Comhairle for facilitating the inclusion of those of us who were late for the debate. It is far from ideal that the debate on the motion is being rushed, but we will support it.

Last Friday, 24 February, was a grim milestone, marking one year since Putin’s invasion of Ukraine. I had the opportunity once again to show the support of the Social Democrats to the hundreds of mostly Ukrainian people who had gathered outside the General Post Office, GPO. Russia’s invasion and its ultimate goal of annexation are not solely a physical attack but also an attack on Ukraine’s status as a sovereign nation in complete violation of international law. Not only is civic infrastructure being targeted, including hospitals, schools and houses, but civilians have been tortured, sexually abused and murdered in huge numbers. More than half of all children in Ukraine have been forced from their homes, which is staggering. The lasting consequences this war will have for generations of Ukrainian people are difficult to fathom. People have lost their livelihoods, homes, communities, childhoods and loved ones. The true scale of the suffering inflicted on the Ukrainian people will not be clear for years to come. When this war ends, and it will end, countless issues will remain to be addressed, such as the prosecution of war crimes, reparations and funding the cost of rebuilding Ukraine. The sanctions against Russia are not likely to end soon. They were put in place for clear reasons, namely, to deny Russia the ability to fund and arm its invasion and to make it abundantly clear that there is an economic cost for illegally invading a sovereign state.

The Business Post reported recently that despite the severe sanctions that have been placed on trade with Russia, the trade figures between Russia and Ireland have been hardly impacted at all. Exports from Ireland to Russia for the first 11 months of 2021 amounted to €559 million, while the figure for the same period in 2022 was €519 million. I have to query why this number has remained static. A large portion of the trade between us and Russia comprises exports from Aughinish Alumina. That plant is operated by Rusal International, which is controlled by the Russia-registered En+ Group. Mr. Oleg Deripaska, a Kremin-linked oligarch, holds a stake of about 45% in that group. Despite claims early last year that Aughinish was going to separate from its parent company, nothing has happened, to my knowledge, and I would welcome the Minister of State's comment on that. Earlier this month, Ukraine confiscated more than 300 assets linked to Mr. Deripaska and Rusal, including a large alumina plant, under its own domestic sanctions. Will the Government explain why we are taking a different approach? Allowing individuals or companies to get away with violating sanctions is insulting to people throughout this country who have seen their energy costs sky-rocket over the past year. The European Commission has stated, “In practice, very few individuals or legal persons responsible for the violation of union restrictive measures are effectively held accountable".

Every member state has to be proactive in enforcing these sanctions, freezing and seizing assets, and closing every possible loophole. If sanctions are to work, they have to cut off the finance that fuels the war. The spiralling fuel costs as a result of these sanctions have underscored just how insecure our energy supply is, and have highlighted that energy we can develop at home, namely renewable energy, is the necessary path for our climate and for national security.

I also want to refer to the double standards in the application of sanctions. I support the points made by Deputy Boyd Barrett. This has shown how sanctions are not consistent and we have to look at the cause and effect of the arming of Saudi Arabia in the war in Yemen, for instance, and the impacts we see every day on the Palestinian people. It is really important not only that we say this here but also that the message on this glaring inconsistency goes to our European partners.

On behalf of the Minister for Justice, Deputy Harris, I thank the House for facilitating the motion today. I will try to respond to some of the Members' queries before I sum up.

Consistency was mentioned by a number of Deputies. This directive will ensure that there is consistency across all EU sanctions through the shared definition of criminal offences so it is not limited to the sanctions on Russia. It is important to make that point.

It is unfortunate that Deputy Michael Collins chose to use his speaking time to make a point about international protection applications and people coming into the country without documentation. As Deputies Kenny and Ó Ríordáin have rightly pointed out, many are fleeing conflict and are fleeing very difficult situations. It should be noted that we treat everybody fairly in this country and we try to do so. It is unfortunate that he used his time to raise that point here today.

On some of the specific points raised by Deputy Boyd Barrett, I have addressed the consistency issue. Ireland does not unilaterally impose sanctions. That is true of all sanctions, not just those related to Russia. We do implement sanctions, including UN sanctions collectively with other EU member states.

Deputy Berry raised the €1.8 billion in frozen Russian funds. That fund is frozen but not yet confiscated. Discussions are ongoing at EU level on what is a legally complicated matter in relation to the possible confiscation and use of the funds, for example for the reconstruction of Ukraine after the war has ended. The Commission's freeze-and-seize task force co-ordinates effective cross-EU implementation of the sanctions adopted against Russian and Belarusian individuals and entities. Again, there is a cross-departmental international sanction committee chaired by the Department of Foreign Affairs so work is ongoing on that.

Deputy Mattie McGrath asked if sanctions are an effective tool. Yes, they are. This is a war of attrition, in which Russia is trying to grind Ukraine, partner countries and the EU down. That is why we need a consistent partnership approach. Above all, we need unity. That is what we are doing with this approach.

Similarly, Deputy Pringle mentioned the time in relation to the debate and the negotiations and peace talks. Under current circumstances, Putin does not want peace and certainly not on the terms that have been put forward to date. It is critical that we continue to exercise this pressure. Separately, Deputy Kenny spoke about the funds. It is about consistency of approach. I note Deputy Ó Ríordáin's point about Deputy Howlin's Bill of November 2021.

I wish Deputy Catherine Murphy all the best as she stands down as co-leader of the Social Democrats. I mentioned the cross-departmental international sanctions committee, which is chaired by the Department of Foreign Affairs and co-ordinates the domestic implementation of sanctions in Ireland.

As I mentioned in my opening remarks, with Russian aggression against Ukraine ongoing, the EU wants to ensure that restrictive measures are fully implemented and the violation of those measures does not pay off. I have outlined the new measures included in the directive that we have come here today to discuss. I also gave an overview of the measures included in the tenth package of EU sanctions, which was agreed on 24 February. Since the start of the war, Ireland has been consistent in advocating for a maximalist approach to sanctions. First and foremost, sanctions deprive Russia of the funds and technology that it needs to continue fighting. The impact of sanctions on the Russian economy has been significant. Russia’s GDP fell in 2022 alone, in some reports by up to 4%. It will likely continue to shrink this year. The EU’s export restrictions have already created a technological lag, which has reduced productivity in many sectors of the Russian economy, including its military sector. This economic decline also minimises Russia’s ability to wage war. EU sanctions aim to incentivise behavioural changes. The sanctions adopted to date deliver a clear message to President Putin and all those who support and finance this unjust war that their actions have consequences.

On using frozen Russian assets to fund the reconstruction of Ukraine, Ireland has expressed openness to exploring proposals. However, it is important to be clear that this is legally very complicated. Current conversations are focused on using immobilised public funds, meaning money deposited by the Russian Central Bank in EU countries. We are not aware of any such deposits in Ireland. A new ad hoc working group has been created in Brussels to discuss this further.

In view of the gravity of the situation we are currently witnessing, it is vitally important that all necessary measures are taken to ensure that those who attempt to violate sanctions are dealt with robustly and consistently across the EU. This directive is an important part of those EU-wide efforts. Ireland opting into this proposal will ensure that we are at the table with our European partners and can be involved in the detailed discussions. I commend the motion to the House.

Question put and agreed to.
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