My Lords, 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. The measures entered into force the following day.
The UK has transformed its use of sanctions. We have deployed sanctions in innovative and impactful ways, including in our response to the threat from the Iranian regime. This instrument contains measures to deter the Government of Iran from causing regional and international instability by disrupting their unmanned aerial vehicles—UAVs—and missile industries, and their access to items critical to military development.
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 prolong 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 2024 demonstrated how Iranian weapons development and proliferation is fuelling conflict in the Middle East. The Iranian regime also used hundreds of these arms in its attack on Israel on 1 October, which we condemn in the strongest terms. This attack once more endangered the lives of innocent civilians and escalated an already incredibly dangerous situation. It cannot be tolerated.
In response to Iran’s attack on Israel on 1 October, the UK has designated nine individuals and entities involved in facilitating Iran’s destabilising activity. These include 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. All efforts must now be on breaking the cycle of violence. At this moment, when tensions are at a peak, calmer heads must prevail. All sides must take immediate steps to de-escalate. A regional war is in no one’s interest.
This is the latest in a 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 aligned militia groups in Iraq and Syria. We have been clear that Iran must cease this support.
Iran is now one of Russia’s top military backers; it has supplied Russia with hundreds of UAVs since 2022. Russia has used these to target Ukraine’s critical infrastructure and kill innocent civilians, prolonging the suffering of the Ukrainian people. In September, Iran also supplied Russia with hundreds of close-range ballistic missiles. This is a further escalation of Iran’s military support to 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 that it poses to the region and beyond.
This legislation expands the UK’s trade sanctions against Iran with the aim of disrupting its UAV and missile industry, as well as its access to items critical to military development. It includes sanctions in relation to items on the Russia common high-priority list. This list was jointly agreed by the UK, the EU, the US and Japan in the context of Russia’s war against Ukraine. It identifies items that Russia is using in its weapons systems, ranging from semiconductors to machine tools.
These items are also significant in Iran’s production of advanced conventional weapons. As the Committee will know, there have been many public reports about Iran’s supply of weapons to Russia. We are therefore prohibiting the export, supply, delivery and making available of these items to Iran through the measures in this instrument. We are also prohibiting the provision of ancillary services associated with the goods, such as brokering services, technical assistance, financial services and funds.
All of the items prohibited by the EU in May have been prohibited by this instrument. In addition, prohibitions will also be applied to some items identified by the Ministry of Defence as significant to Iran’s UAV and missile industries. 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 or making available of these items to Iran without the appropriate licence.
Finally, this Government are committed to enforcement. It is right that we ensure that we have the necessary powers, tools and capacity to implement and enforce our sanctions regimes effectively. That is why, on 10 October, we launched the Office of Trade Sanctions Implementation, with enhanced civil enforcement powers, in order to maximise the impact of the UK’s trade sanctions against Russia. These powers include the abilities to issue civil monetary penalties for breaches and to make details of breaches public. There are also new reporting requirements on sectors well positioned to find evidence of trade sanctions breaches.
To conclude, 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 its proxies in the Middle East or to Russia. We will continue to work with like-minded partners to disrupt, deter and respond to threats from the Iranian regime and to co-ordinate sanctions action. These regulations send a clear message to the Government of Iran and those seeking to harm the UK’s security, as well as that of our partners: we will not stand idle in the face of this aggression. I beg to move.