Sanctions: Iran

(Limited Text - Ministerial Extracts only)

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Wednesday 23rd October 2024

(5 days, 11 hours ago)

Commons Chamber
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Stephen Doughty Portrait The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)
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I beg to move,

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.

Gavin Williamson Portrait Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
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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.

Stephen Doughty Portrait Stephen Doughty
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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.

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.

None Portrait Several hon. Members rose—
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Stephen Doughty Portrait Stephen Doughty
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I thank all right hon. and hon. Members for their contributions. They have made some important points, and I thank them for their wholehearted support for the regulations. It is important that we maintain unity in the House on these measures to tackle these regimes, whether it be Russia or Iran. As I said earlier, these measures represent a step forward in our capability to restrict Iran’s proliferation of advanced conventional weapons, which continue to fuel the conflict we have been discussing in the middle east and to support Russia in its illegal war in Ukraine. We are firmly committed to using sanctions to hold the Iranian regime to account for its malign activities in the UK and elsewhere.

I should point out that we do not just have these regulations. Continuing on from measures under the previous Administration, on 2 September we sanctioned four IRGC Quds Force targets who have a role supporting Iranian proxy actions in Iraq, Syria and Lebanon. We announced sanctions against 15 Iranian and Russian targets on 10 September, cancelled our bilateral air service arrangements with Iran Air and targeted those who were involved in a series of actions.

We have consistently raised our concerns directly with the Iranian regime and, indeed, with a range of partners. On 14 October we designated nine individuals and entities involved in facilitating Iran’s destabilising activity. That included senior military and IRGC figures and entities involved in Iran’s ballistic missile programme. Those are just some of the examples since this Government came in, but they are among more than 460 Iranian individuals and entities that have been sanctioned due to Iran’s malign activities in the region and internationally. That includes 94 human rights-specific sanctions on individuals and entities, to respond to many of the significant and rightful concerns raised by colleagues today.

Alicia Kearns Portrait Alicia Kearns
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It is clear from the tenor of the House—I have to say as a woman that I find it incredibly moving to hear my hon. Friend the Member for Bexhill and Battle (Dr Mullan) and the hon. Member for Ceredigion Preseli (Ben Lake) speaking so strongly for the women who continue to be raped and blinded by the Iranian regime—that the House is saying that we want to see more effort on this. I would be grateful if the Minister committed to taking that away. I am not asking for him to predetermine what he will do on sanctions, but it is incredibly powerful to hear so many men speaking up for Iranian women, and they need to hear our voices or they will lose hope.

Stephen Doughty Portrait Stephen Doughty
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I wholeheartedly agree with the hon. Lady’s comments. As she knows, we do not comment on future designations, but I have certainly heard the strong voice across the House today, which reflects the horrific reality for women and girls—ordinary Iranian civilians—under that repressive regime. I thank her overall for her support. She rightly highlighted a series of Iran’s malign actions. I agree with her that those promoting proscribed organisations in the UK should face the full force of the law. That is for our law enforcement agencies, but the Prime Minister and others have made that absolutely clear.

The hon. Lady raised concerns in relation to the foreign influence registration scheme. I assure her that we remain absolutely committed to that. We will further strengthen our national security while maintaining the UK as an international hub for business. Announcements on the tiers will be made at a later stage, but we are absolutely committed to it—it is not going anywhere. We are committed to moving forward with that agenda and I have been discussing it with colleagues across government.

The hon. Lady and others mentioned the JCPOA. Let me be clear: snapback remains an option. We remain in close contact with E3 and other partners, and I will say a little more on that in a moment. I refer her to my previous comments on the IRGC as a whole. She and other hon. Members asked me about the internationalisation of sanctions. Absolutely, this is about working with partners. Are we looking at how we can increase penalties and enforcement? Absolutely, whether that be OTSI or others. Obviously, I cannot comment on future investigations and designations.

The hon. Lady asked about wider UK military support to Ukraine. I point to the very important announcement yesterday, on top of existing commitments. The extraordinary revenue acceleration will deliver an additional £2.26 billion to Ukraine for crucial needs, working with our partners across the G7. I will come on to Lebanon in a moment, but do I condemn all the proxies that Iran is supporting? Absolutely. We have been very clear about that.

Other right hon. and hon. Members made important points. My hon. Friend the Member for Barking (Nesil Caliskan) and the Liberal Democrat spokesman, the hon. Member for Bicester and Woodstock (Calum Miller), rightly referred to issues around human rights and repressive actions within Iran itself. He asked specifically about one case. I know he received a specific answer from the Under-Secretary of State for Foreign, Commonwealth and Development Affairs, my hon. Friend the Member for Lincoln (Hamish Falconer) on that yesterday in FCDO questions. He asked about the wider issues around illicit finance and kleptocracy. These are significant priorities for the Foreign Secretary and me. I assure him and the House that we are working at pace on these issues and will be announcing further measures in due course. He asked about public registers of beneficial ownership and ensuring transparency. I am in close contact with our overseas territories regarding these issues and have made it clear that we expect to see progress at pace. I will make that clear to leaders before the joint ministerial council in a few weeks’ time. My hon. Friend the Member for Hendon (David Pinto-Duschinsky) rightly referred to the heinous executions and internal repression, although, as I said, I will not comment on further designations.

I thank the right hon. Member for Maldon (Sir John Whittingdale) for his kind remarks about the cross-party support we have had for Ukraine. He rightly raised issues relating to the Democratic People’s Republic of Korea. He will have heard in recent days the Foreign Secretary, with his counterpart in the Republic of Korea, state our absolute condemnation regarding DPRK’s involvement in Russia’s illegal war in Ukraine. I will certainly take a look at The Economist article he mentioned. We will seek to do everything we can to close down loopholes and ensure the effectiveness of our regime.

The hon. Member for Bexhill and Battle (Dr Mullan) made some very powerful points, in particular highlighting the impact on women and girls, and minority groups—that was also touched on by the hon. Member for Strangford (Jim Shannon)—within Iran. The Government remain absolutely committed to freedom of religion or belief, and targeting religious minorities or repressive actions against them cannot be tolerated.

The hon. Member for Ceredigion Preseli (Ben Lake) also highlighted the internal oppression. The hon. Member for Honiton and Sidmouth (Richard Foord) ranged over a whole series of issues, but spoke in particular about third-country circumvention. Addressing this issue is a key priority for the Government. It is one that forms a regular part of my conversations with third countries identified. I have had numerous such conversations in recent weeks and we will, with our allies, continue to do so. We must close down all loopholes and all routes, whether in Russia or Iran, to ensure our sanctions regimes are effective.

Before concluding, let me briefly touch on a couple of the specific themes that came out of the debate. Let me be clear: Iran’s actions in relation to Israel are completely unacceptable. The Prime Minister and the Foreign Secretary have been absolutely clear that we stand with Israel and recognise its right to self-defence in the face of Iranian aggression. We absolutely condemn in the strongest terms its attack against Israel. We designated individuals specifically in response to the attack on Israel, including senior military figures and entities involved in Iran’s ballistic missile programme.

I referred to the JCPOA, but let me be clear that Iran’s nuclear escalation since 2019 has gone far beyond JCPOA limits and is undermining the deal. Alongside our E3 partners, we will use all diplomatic options available to ensure that Iran never develops a nuclear weapon, including triggering the snapback of all UN sanctions lifted under the JCPOA if necessary. I mentioned the actions that we have taken against regional proxies, but let me remind the House that the UK proscribes the entirety of Hezbollah as a terrorist organisation, and has an asset freeze in place against the entire organisation. We assess Hamas in their entirety to be concerned with terrorism, and therefore proscribe the organisation in full. The Houthis are sanctioned in their entirety by the UK and are subject to a targeted arms embargo.

On human rights, as I said, there are 94 human rights sanctions on Iranian individuals and entities. The horrifically high rate of executions is a deliberate attempt to instil fear and stifle dissent in Iran. As a Government we remain opposed to the death penalty in all circumstances, as a matter of principle. The situation for women and girls is truly horrific. We condemn Iran’s appalling treatment of women and girls, including through its repressive policies. We will work with international partners to engage with the findings of the UN special rapporteur on Iranian human rights.

Media freedoms were also mentioned; as a member of the Media Freedom Coalition, we are determined to ensure that journalists are able to do their jobs without fear of retribution. Given the situation for detainees and the historical cases involving Nazanin Zaghari-Ratcliffe and others, we continue to believe that British nationals and British-Iranian dual nationals are at significant risk of detention in Iran. British nationals are advised not to travel to Iran, but we do not and never will accept our nationals being used as diplomatic leverage.

Jim Shannon Portrait Jim Shannon
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Again, I apologise for not being here earlier to ask the Minister a question directly. The IRGC is quite clearly the leader of Iran’s private army. It is involved in some of the worst repression, murders and despicable acts across all of Iran. Is it not time to collate all this information and put it together to hold those people accountable for what they are doing, and for human rights abuses in Iran?

Stephen Doughty Portrait Stephen Doughty
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I made clear our position on the IRGC earlier, but as I pointed out, we have sanctioned directly a number of individuals involved with that organisation. We recognise the threat that it poses and will take the necessary measures to counter it at home and around the world, but obviously we do not comment on future designations.

The safety and security of the United Kingdom from Iran’s malign actions has been raised on a number of occasions. It was rightly pointed out that the UK has identified at least 15 threats towards UK-based individuals. Our police, intelligence and security agencies have been confronting these threats for many years, but their seriousness has increased in recent months. Let me be clear: we will always stand up to threats from foreign nations, and we will continue to work closely with our international partners to identify, deter, and respond to those threats.

Lastly, on Lebanon, we have been very clear that a political solution consistent with resolution 1701 is the only way to restore its sovereignty, territorial integrity and stability. We have been calling for an immediate ceasefire between Lebanese Hezbollah and Israel, and a political plan that will enable civilians on both sides to return to their homes. Nobody wants further escalation, and we will continue to work with partners across the region on that.

These new regulations will increase the pressure on Iran’s defence industry. They will disrupt Iran’s production of UAVs and missiles that could be supplied to proxies in the middle east or Russia. We will continue to work with likeminded partners. The regulations send a clear message to the Government of Iran and those seeking to harm the UK’s security and that of our partners: we will not stand idle in the face of this aggression. I commend the regulations to the House.

Question put and agreed to.

Resolved,

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.