That the Iran (Sanctions) (Amendment) Regulations 2024 (SI, 2024, No. 944), dated 11 September 2024, a copy of which was laid before this House on 12 September, be approved.
These regulations amend the Iran (Sanctions) Regulations 2023. The instrument was laid before Parliament on 12 September under powers contained in the Sanctions and Anti-Money Laundering Act 2018, and the measures entered into force the following day. As the Minister responsible for sanctions, I would like to start by setting out the Government’s priorities in this area. Since coming into office, I have been clear that we must have the necessary powers and tools to implement and enforce our sanctions regimes effectively.
The proper implementation and enforcement of UK sanctions is critical to maximising their impact, and this Government are committed to improving the UK’s track record on sanctions enforcement. That is why, on 10 October, we launched the Office of Trade Sanctions Implementation—OTSI—which enhanced civil enforcement powers to maximise the impact of the UK’s trade sanctions. These powers include the ability to issue civil monetary penalties for sanctions breaches, and for OTSI to make details of breaches public. There are also new reporting requirements on sectors that are well positioned to find evidence of trade sanctions breaches. We have put in place similar civil enforcement powers for transport sanctions, aligning the enforcement of trade and transport sanctions with our approach to financial sanctions.
I have also brought together ministerial colleagues on sanctions enforcement, and colleagues in the Treasury, the Home Office, the Department for Business and Trade, the Department for Transport and the Department for Energy Security and Net Zero are working towards a shared vision of how to enhance it. That will include ways in which we can further support UK overseas territories and Crown dependencies with their sanctions enforcement. We plan to be transparent on what we are doing, and I look forward to updating Parliament on enforcement actions in due course.
The Government have deployed sanctions in innovative and impactful ways, including in the sanctions package we are putting forward today. We have taken swift and decisive action to increase pressure on Russia’s war machine, spearheading a call to action at the European Political Community in July to tackle Russia’s shadow fleet. We have sanctioned 43 oil tankers that were transporting Russian oil, as well as nine liquefied natural gas vessels involved in shipping Russian LNG, including from Russia’s flagship Arctic LNG 2 project, to target the Kremlin’s energy revenues.
We have also enhanced our response to the threat from the Iranian regime, and I will now turn to the details of the instrument before us. It contains measures to deter the Government of Iran from causing regional and international instability, by disrupting its unmanned aerial vehicle and missile industries and its access to items critical for military development. I hope the House will support these important measures today.
The Iranian regime’s development and proliferation of large volumes of advanced conventional weapons, including UAVs and missiles, continues to destabilise the middle east and also prolongs Russia’s illegal war in Ukraine. Iran’s use of an unprecedented number of UAVs and missiles during its attack on Israel on 13 April demonstrated how Iranian weapons development and proliferation is fuelling conflict and escalation in the middle east.
The Iranian regime also used hundreds of these arms in its attack against Israel on 1 October, which we condemn in the strongest terms. That attack once more endangered the lives of innocent civilians and escalated an already incredibly dangerous situation, and that cannot be tolerated. In response to Iran’s 1 October attack on Israel, the UK has designated nine individuals and entities involved in facilitating Iran’s destabilising activity. That includes senior military figures and the Iranian Space Agency, which develops technologies that have applications in ballistic missile development.
We are deeply concerned about the prospect of further escalation, and all efforts must now be concentrated on breaking the cycle of violence. At this moment, when tensions are at their peak, calm heads must prevail and all sides must take immediate steps to de-escalate. A regional war is, of course, in no one’s interest. However, this is the latest incident in the long history of Iran destabilising the region, including through its political, financial and military support for its proxies and partners, such as Hezbollah, Hamas, the Houthis and its aligned militia groups in Iraq and Syria. We have been clear and consistent that Iran must cease this support.
I thank the hon. Gentleman for his generosity in giving way. Does he accept that the Islamic Revolutionary Guard Corps is a key component of the destabilisation sponsored by the Iranian regime? Will he update the House on the Government’s thinking on proscribing that organisation? I think he would find many allies across the House who would be keen to see that happen.
I thank the right hon. Gentleman for his comments. We of course recognise the huge threat that the IRGC poses, and we will take the necessary measures to counter it at home and around the world. He will understand that the Government keep the list of proscribed terrorist organisations under careful review, and we do not, of course, comment in the House on whether an organisation may be under consideration.
As I said, Iran is now one of Russia’s top military backers and has supplied it with hundreds of UAVs since 2022, including different models of drones. Russia has used those to target Ukraine’s critical infrastructure and to kill innocent civilians, prolonging the suffering of the Ukrainian people. In September, Iran supplied Russia with hundreds of close-range ballistic missiles. That is a further escalation of Iran’s military support for Russia’s war of aggression against Ukraine and will further enable Russia’s invasion. In return, Iran is receiving Russian military and technological support, enabling it to further develop its military capabilities and enhancing the risk it poses to the region and beyond.
The legislation before us expands the UK’s trade sanctions against Iran, with the aim of disrupting its UAV and missile industry and its access to items critical to military development. It includes sanctions in relation to the items on the Russia common high priority list. The list, which was jointly agreed by the UK, the EU, the US and Japan in the context of Russia’s war against Ukraine, identifies items that Russia is using in its weapons systems, ranging from semiconductors to machine tools. Those items are also significant in Iran’s production of advanced conventional weapons. As the House will know, there have been many public reports about Iran’s supply of weapons to Russia. Through the instrument, we are therefore prohibiting the export, supply, delivery and making available of those items to Iran.
Order. May I remind Members that if they intend to speak in a debate, they need to be here for the opening? It is a particular discourtesy to the House if the Front-Bench spokespersons are not here at the beginning.
The Conservative party supports the regulations, which extend the Iran sanctions regime to drones and drone technology as well as financial services, funds and brokering services relating to items of strategic concern. However, these sanctions seek to address issues emblematic of a far larger threat. The Government should be in no doubt that Iran’s malign influence is one of the biggest challenges to both global and British security. For decades, Iran has deliberately undermined the rules-based international order, destabilising its neighbourhood and funding terrorism globally, all while brutally repressing its own people and committing a femicide.
For years, the Iranian regime has created asymmetric threats, co-opted existing movements and provided weapons, money and training to its proxies and ideological partners. Be they Hamas in Gaza, Hezbollah in Lebanon, the Houthis in Yemen or Shi’a militias and the popular mobilisation forces across Iraq and Syria, they are terrorist organisations that have no interest in their local people and instead pursue the aims of the ayatollah; hostage captors and committers of the worst atrocity against the Jewish people since the Holocaust; and actors disrupting maritime traffic in the Red sea, a sea link that is vital for the delivery of food and fertiliser to countries facing serious hunger crises in east Africa and south Asia.
As the Minister set out, Iran is now embedding itself in conflict on our own continent, transferring hundreds of attack drones and, as we now know, ballistic missiles to Russia to prop up its barbaric, illegal and unprovoked renewed invasion of Ukraine. They are fuelling a war machine that seeks to dismantle a sovereign democratic state in Europe and enabling the murder of Ukrainians every single day. The Government must now allow Ukraine’s use of long-range weaponry on strategic targets. Escalation warrants a response or further deterrence will be undermined. The invasion of Ukraine is an attack on us all. Iran is that hand in glove for Russia, the perpetrator.
I thank the Minister for his speech on this really important issue. The continued instability in the region is of growing concern to many of us, not just because of the immense loss of life but because of the ever-growing security risk for this country. The Government have been clearly leading calls for de-escalation in the region. Does the Minister agree that it is time once again to redouble our efforts with those calls, so that all parties in the region show restraint?
Thank you, Madam Deputy Speaker. I appreciate your earlier guidance and apologise to you and the House.
I rise to speak on behalf of my party in support of today’s measures. The Liberal Democrats have for a long time supported a strengthening of UK sanctions against the Iranian regime, not least in the light of the murder of Mahsa Amini just over two years ago. After Mahsa’s brutal murder by the Iranian morality police, Iranians took to the streets in their hundreds of thousands. Violence was meted out by the Iranian authorities against those brave individuals. More than 20,000 were detained, with women and girls particularly targeted, and ultimately some were executed by the Iranian authorities.
Such behaviour is characteristic of the Iranian regime. The Foreign, Commonwealth and Development Office’s own human rights and democracy report, in its most recent iteration, labels Iran as one of the worst executers globally. More than 500 people were executed in 2022, including two young offenders. The report also identifies the continued erosion and systematic violation of human rights and fundamental freedoms such as freedom of expression and belief, the tightening of restrictions against women and girls and, chillingly, the use of facial recognition software to identify those deemed to be improperly dressed.
Just as the Iranian regime sees fit to violate the basic rights of its own citizens at home, its influence abroad is similarly malign, both in the middle east and closer to home. It is Iranian drones—more than 8,000 of them—that have come to Vladimir Putin’s aid and been launched continually into Ukraine since the start of the war. We supported the strong condemnation by the UK and our E3 partners of the news that Iranian ballistic missiles were also now being exported to Russia for use against our Ukrainian allies.
To that end, we welcome today’s sanctions, which extend existing sanctions against UAVs to other goods and technology of strategic concern, from cameras designed for UAVs to microwave amplifiers. We trust that the Minister will keep the list under continual review, not least to ensure that we are preventing the future supply of anything that Russia might seek to procure from the Iranians. Will he update the House on what discussions he or his colleagues have had with E3 counterparts or others regarding the status of the JCPOA? What is the Government’s stance on the JCPOA, given Iran’s seeming disregard for international law?
I would be interested in hearing what difference the hon. Gentleman thinks proscription of the Islamic Revolutionary Guard Corps would make. On Alaa Abd El-Fattah, the problem is that the Egyptians do not recognise dual nationality, so a right to consular access would make no fundamental difference. Having led an inquiry on this, I would be grateful if he explained why he thinks a right to consular access would make a fundamental difference in any such hostage case.
On the IRGC, we believe that proscribing that terrorist organisation, which runs a state in the region, would put considerable constraints on its ability to operate around the world and prohibit many of its actions, including those in the UK and threats against British citizens, to which I referred. I know that the hon. Lady has taken a strong interest in the case that I mentioned—indeed, she mentioned it in the House yesterday—and is also working on the denial of consular access. It seems to me that consular access is a critical role of the Foreign, Commonwealth and Development Office. In the case that we are discussing, it is not clear to the family of Alaa Abd El-Fattah that the Foreign Office has made sufficient effort to secure that access in Egypt, and it is in that context that I raise this particular question. I would be interested in the Minister’s response on when consular assistance will be guaranteed to those who have suffered human rights violations.
Secondly, as we use sanctions against those with links to the Iranian regime, we urge the Government to look closely at where those individuals, and others with links to the regime, have stashed their money. Has some of that money been funnelled into London, as is the case with so many other kleptocratic regimes, and will the Minister commit to carrying out an audit so that we know where those assets are—including those that have been entrusted in the name of family members—and can freeze them accordingly? I hope that the Minister will update the House on whether the Government are considering any plans for a third piece of economic crime legislation to close loopholes in the two previous Acts, including by finally delivering a comprehensive approach to the register of beneficial ownership.
Finally, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) has set out how, in this Parliament, the Liberal Democrats will act as a constructive Opposition. This is my first contribution to a debate on legislation as the party’s foreign affairs spokesperson, so I put on record that that approach applies as much to the international sphere as it does to domestic policy. We welcomed only yesterday the Government’s measures on using frozen Russian assets to the benefit of Ukraine, which we had called for over many months. We also urge the Government to go further by seizing those assets in their entirety. It is in that constructive spirit that I put forward my party’s proposals for taking further steps on Iran. In that area, too, I urge the new Government to be ahead of events, not behind them.
I thank the Minister for his statement, which I welcome both for its steadfast support of Ukraine and for its action on Iran.
As we have heard from everyone in the debate, Iran poses a threat to both regional and global stability. The Iranian regime is not just exporting weapons to support Russia’s despicable illegal war in Ukraine; it is exporting terror—we have heard mention of the Houthis and various other groups. It is—and I thank the hon. Member for Bicester and Woodstock (Calum Miller) for mentioning this—committing savage repression against its own people. Over 230 people have been executed in Iran in the past few months alone, and I know that the Iranian community in Hendon is incredibly worried about the horrific repression that the Iranian people face.
We know that Iran poses a threat, and we know that that threat is growing, so I welcome the cross-party consensus that the measures make real sense. I thank the Minister for introducing the regulations, and I ask that the FCDO keep a close eye on the threat that Iran poses so that we can take further measures if needed, to back up the Government’s strong action to confront the threat of Iran head on.
I strongly welcome the regulations. As my hon. Friend the Member for Rutland and Stamford (Alicia Kearns) and the Minister have made clear, Iran is a malign influence that is fuelling many of the most serious conflicts around the world. There was Iran’s horrendous attack on Israel recently, but there has also been its supply of weapons to Hamas, Hezbollah, and the Houthis—and particularly to Russia, in its invasion of Ukraine.
We have debated Ukraine many times, and will continue to do so. The Minister has taken a close interest in the issue, and I thank him for his support in opposition—both sides of the House are united in support for Ukraine. The measures will help a little, but the Minister will know that Ukraine is suffering desperately. The casualties, which are being inflicted in part by the weapons that, hopefully, this measure will help to stop reaching Russia, are horrendous, and stopping those attacks is part of President Zelensky’s victory plan. I echo the comments of my hon. Friend the Member for Rutland and Stamford that we need to do more to support Ukraine to implement its victory plan, particularly by allowing it not only to shoot down attacks from drones and missiles over its own territory but to attack where they originate, outside the border of Ukraine in Russia.
It is not going to be enough just to stop the supply of weapons from Iran. We know that they are being supplied by other countries, in particular North Korea—and not just weapons, but potentially troops as well. Therefore, I hope that we will look at sanctions enforcement across all the countries that are giving succour to Russia.
I want to touch on one or two other aspects of Iranian behaviour. The Minister knows that sanctions are used to try to put an economic squeeze on countries that have breached international rules, and also to uphold human rights. In particular, the use of Magnitsky sanctions is now well established.
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We are also prohibiting the provision of ancillary services associated with the goods, such as brokering services, technical assistance, financial services and funds. All the items prohibited by our partners in the EU in May are also prohibited by the instrument. In addition, prohibitions will be applied to some items identified by the Ministry of Defence as significant to Iran’s UAV and missile industries.
We have also taken the opportunity to simplify some of the existing trade sanctions on Iran so that businesses are better able to implement them. These trade restrictions complement our existing export controls and sanctions, ensuring that no UK business or person, wherever they are in the world, can facilitate the export, transfer, supply, delivery and making available of these items to Iran without prior authorisation.
I hope that the House will support these measures. I commend them to the House.
Here at home, there have been numerous Iranian plots to assassinate British or UK-based individuals whom the regime considers its enemies. The UK has had to respond to more than 15 such plots since 2022. We have seen Iranian cut-outs investigated for spreading IRGC propaganda and for glorifying sanctioned individuals and terrorists. We have seen IRGC generals providing radicalising lectures here in our capital city. Even on our streets, we have seen people glorifying organisations such as the Houthis and others who are not acting in defence of Gaza and who are not progressive movements; they are terrorists. Iran has also arbitrarily detained and imprisoned British citizens, including Nazanin Zaghari-Ratcliffe, whose shocking ordeal proves beyond doubt Iran’s disdain for human rights and human dignity.
As the Conservative Government demonstrated, we can take a muscular approach. We introduced the extensive sanctions regime to disrupt Iran’s hostile behaviour, targeting its decision makers along with those who did its bidding. We imposed measures to help choke off the funding flows from Iran to Hamas and Palestinian Islamic Jihad, as well as sanctions on Iran’s drone programme; indeed, 400 sanctions were in place on Iran by the time we left office, and in 2023 alone we made 154 new designations. Alongside the US and with support from allies, we carried out strikes against the Houthis in Yemen to degrade their capabilities, aiding and supporting allies across the world. British military personnel and equipment helped to defend Israel from an Iranian attack in April, and we told the regime in Tehran in no uncertain terms that it must rein in its proxies.
When the Government propose measures such as the regulations before the House to counter Iran’s appalling behaviour, we will support them, but we are also very clear that the Government need to maintain the pressure and look at the bigger picture in equal measure to respond to the ever-growing threat. That point takes me on to the strategy that we are pursuing.
We must stop compartmentalising our response and approach to Iran. We need to work out how we will measure success in reducing the threat of Iran to our people and our interests. The Government must do this work. Iran does not currently pursue active and direct confrontation with us, but its threshold for chaos is too high. We must work out how we will reduce that threat. Iran will continue to do as it sees fit—its priority is the survival of the regime, and it has strategic patience—but we need to shape a strategy not in response to Iran, but in the pursuit of our ambitions, protecting our people and our interests. Unfortunately, we cannot rely on the USA to lead. We need a new Euro-Atlantic focus, but the UK must decide what our priorities are.
We must also be prepared for fractures within the regime. We must recognise that although Iran rarely changes its behaviour, it has a cycle of boom and bust and we must be prepared for what may fall out. I urge the Minister to take the opportunity to restructure; I recognise that he is the Minister for sanctions rather than for north Africa, but I know that he will take these words back to the Department. It is time for us to rethink our strategy on Iran and move from being reactive to being proactive.
We need long-term thinking on how we restore state control over areas abused by Iranian-backed non-state actors. That includes the implementation of UN resolution 1701 and the removal of Hezbollah military positions from southern Lebanon, with the Lebanese military being able to reassert sovereign control. We also need a strategic approach to the Houthis that prioritises the restoration of proper governance in Yemen, including payment to public servants and protections against Houthi embezzlement of public funds.
Domestically, we must bolster our resilience and protect our society from corrosive Iranian influence and transnational repression, which is extensive. The National Security Act 2023 should be implemented in full as quickly as possible, including the register of foreign lobbyists, which shamefully the Government have delayed. I urge them to put it in place as soon as possible. There is no reason for it not to proceed at speed.
Internationally, we must work with our partners to contain the looming threat of a nuclear Iran. The joint comprehensive plan of action needs revisiting. There is no perfect deal, but the current situation is untenable. The JCPOA is on life support. We need a new Euro-Atlantic approach. Antony Blinken’s comment that Iran’s nuclear break-out time is now one to two weeks should concern us all. It is a nuclear threshold state. We have the agency to disrupt Iran’s malign plans and to lead the international community in doing so if we have the courage to act and are prepared to develop a harder edge. The time to act must be now.
I will be grateful if the Minister answers the following questions. When will the Government proscribe the IRGC? That was a promise that Labour made in opposition, and promises matter. Will he work with allies to ensure that sanctions are international and ensure their effectiveness in curbing Iranian drone development exports? Individual sanctions programmes do not work; they must be done on a multilateral basis.
Will the Minister work to ensure that the Office of Financial Sanctions Implementation is pursuing penalties against those who breach sanctions? We have not seen any being pursued when there have been breaches of sanctions around Russia. We must see that happening on both Iran and Russia. Does he agree that in addition to using sanctions, we must buttress Ukraine’s military capability requirements so that it can take down Iranian drones in the skies and match the weapon range of Russia’s armed forces? That means the use of Storm Shadow missiles.
Finally, with proxies such as Hezbollah being degraded, will the Minister commit to working towards freeing captured societies from Iranian influence and helping states such as Lebanon to reassert their independence and state effectiveness? Will he assert in clear terms that the Government condemn all Iranian proxies and will assist good-faith actors in resisting their proliferation, political entrenchment and military expansion and pursue a new UK coherent strategy to protect our people, our country and our interests from an increasingly belligerent Iran?
The Government’s message to Iran at all times must be that its threshold for chaos is too high. They must step back, because the current approach is not working, but that starts with us recognising that we can be in the driving seat and stop reacting to Iran.
The Liberal Democrats also urge the Government to go further on sanctions. The past few weeks have served as a demonstration of Iran’s terrible influence within the middle east, and in particular the role of the IRGC. We condemn the barrage of ballistic missiles fired against Israel by Iran’s IRGC at the beginning of the month. The IRGC continues to supply rockets and weaponry to its terrorist proxies, Hamas, Hezbollah and the Houthis, who have caused so much death and misery in the middle east. In 2022, security services revealed 10 plots organised by the IRGC in that year alone here on British soil where the intention was to kidnap or kill British nationals or UK residents.
The previous Conservative Government did not proscribe the IRGC. In opposition, the now Foreign Secretary said:
“The IRGC is behaving like a terrorist organisation and must now be proscribed as such.”
I agree, so will the Minister take that long overdue step and proscribe the IRGC as a terrorist organisation? Not only will that have a positive impact in the region, but it will make the Iranian diaspora in the UK safer and more secure. I am sure that Members on both sides of the House have British-Iranian constituents who are deeply concerned about how the IRGC has been able to operate with limited constraints in this country. We welcome any steps forward to strengthen our sanctions regime against Iran, but we will continue to make the case to the Government that the single most effective thing that they can do is proscribe the IRGC.
I have two remaining points. Recalling the case of Nazanin Zaghari-Ratcliffe, who is thankfully now back in the UK with her family following the six years that she spent in prison in Iran, the Labour party committed in its manifesto to introducing a right to consular assistance in cases of human rights violations—a measure that we support. I raised yesterday the case of British-Egyptian dual national Alaa Abd El-Fattah, who is being held without consular access in Egypt. Will the Minister update the House on when the right to consular assistance will be introduced?
The Minister may be aware that I chair the all-party parliamentary group on media freedom. Iran’s record in that area is terrible: it is 176th out of 180 on the index of press freedom. As RSF—Reporters Without Borders—has pointed out, more than 100 journalists have been interrogated, detained or imprisoned since the start of the protest movement in 2022; 16 remain in prison due to their work, alongside another 19 who were there before.
We are not just talking about within Iran; the Minister will know that the IRGC lies behind the attacks on journalists in London. Iran International has had to have protection and move offices because of a continuing threat by the IRGC against its journalists. I have talked to the management of Iran International and some of its very brave journalists, one of whom was attacked in the streets of London. We are not just talking about Iran International, either. Members of the BBC Persian service continue to be subject to threats and harassment, and their families in Iran are being pressured by the regime to try to reach those journalists.
For those reasons, I echo the calls that have been made already by my hon. Friend the Member for Rutland and Stamford and the Liberal Democrat spokesman, the hon. Member for Bicester and Woodstock (Calum Miller): the IRGC must be proscribed. That was the view of the Minister’s colleagues when they were in opposition, and it is the view of America and Canada. We await to hear as soon as possible the Government’s decision.
Imposing sanctions is clearly an important part of putting pressure on Iran, but they need to be enforced. One of the benefits of having professional investigative journalists is that they are sometimes able to expose things that otherwise remain hidden. If the Minister has not done so, will he study carefully this week’s edition of The Economist? The Economist has carried out an in-depth investigation of the enforcement of the sanctions imposed by America on Iran, and the way in which those sanctions are being completely bypassed. Apparently, Iran is currently selling 1.8 million barrels of oil per day, almost all of which end up in China. They do so through a whole host of front organisations. Individual components of the Iranian regime, including the IRGC and the Quds Force, are given crude oil to market and they then set up their own front organisations. They use shadow organisations to procure tanker movements; they have banks that support that activity; and as I say, a large part of that oil ends up in China, which is the main purchaser. The money then flows back through that network directly to Iran.
Although I do not necessarily believe that that is done knowingly, The Economist also states:
“London is the world’s sixth-biggest base by number of Iranian-linked entities blacklisted by America.”
As such, I hope the Minister will look carefully at not just tightening the noose around the regime, but making sure that the loopholes that are currently being exploited to get around sanctions are properly closed down, in this country and elsewhere. As I have said, today’s motion is very welcome, but we need to do a lot more.