UK ‘took every precaution’ that debt repayment to Iran would not be used for arms

Cleverly said the British cash would not be used to buy weapons for Iran. (AFP/File)
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Updated 17 March 2022
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UK ‘took every precaution’ that debt repayment to Iran would not be used for arms

  • $517.5m paid in exchange for freedom of dual nationals Nazanin Zaghari-Ratcliffe, Anoosheh Ashori
  • Debt was related to tank deal during shah’s rule that was upended by 1979 revolution

LONDON: Britain “took every precaution” that a £393 million ($517.5 million) debt repayment to Iran would not be used for weapons, Foreign Secretary Liz Truss has said.

The debt, owed for nearly 40 years, was paid in exchange for the freedom of British-Iranian dual nationals Nazanin Zaghari-Ratcliffe and Anoosheh Ashori. They were returned to the UK overnight on Wednesday.

Truss tried to separate the issue of the “legitimate debt” and the freedom of the hostages, but the Daily Telegraph reported that the plane carrying the hostages would only take off once the transaction had been made.

“We had been looking at ways to settle the debt that we conceded that we owed,” James Cleverly, minister of state for Europe and North America, told Sky News.

“We owed this debt, we accepted that debt, obviously the sanctions position made it incredibly difficult. You cannot just write a cheque, it doesn’t work like that.

“But it’s taken a huge amount of work to come up with a method of ensuring that money is for humanitarian purposes and it conforms to the sanctions.”

Asked how confident he was that the cash would not be used for arms, Cleverly said: “We have taken every precaution to make sure that this is used exclusively for humanitarian requirements.

“Iran does have a significant, meaningful humanitarian requirement, and as I say we have taken precautions to ensure that.”

Zaghari-Ratcliffe and Ashoori had spent six and five years respectively behind bars in Iran, both on national security or spying-related charges that they both vehemently deny.

There had been widespread speculation, including by Zaghari-Ratcliffe’s husband, that their freedom was contingent upon the release of money owed to pre-revolutionary Iran by Britain — now paid in full — for an undelivered order of tanks.

Under the shah, Iran had been a close ally of the UK and the wider West. But that relationship, and the defense cooperation it entailed, was upended with the 1979 revolution that overthrew him.


Britain needs to step up defense spending faster, says Starmer

Britain's Prime Minister Keir Starmer takes part in a panel discussion in Munich, Germany. (AP file photo)
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Britain needs to step up defense spending faster, says Starmer

  • Britain’s budget watchdog, the Office for Budget Responsibility, said last year that raising defense spending to 3 percent of the GDP would cost an additional £17.3 billion a year ($24 billion) in 2029-30

LONDON: Britain should step up and accelerate its ​defense spending, Prime Minister Keir Starmer said on Monday, following a report that the government was considering bringing forward its target to spend 3 percent of economic output on defense.
Britain, which has warned of the risks posed by Russia, said in February 2025 that it would lift annual defense spending to 2.5 percent of the GDP by 2027 and aim for 3 percent in the next Parliament, which is expected to begin after an ‌election due in ‌2029.
The BBC reported that the government was ​now ‌exploring ways to ​reach the 3 percent target by 2029. It said no decision had been taken but the government recognized current plans would not cover rising defense costs.

HIGHLIGHT

The BBC reported that the government is ​now ‌exploring ways to ​reach the 3 percent target by 2029.

Asked whether he would bring the target forward to 2029, Starmer echoed comments he made at the Munich Security Conference, where he said Europe had united to support Ukraine with the supply of weapons and munitions and to strengthen military readiness.
“We need to step up. That means on ‌defense spending, we need to go faster,” ‌Starmer told reporters on Monday. “We’ve obviously made commitments ​already in relation to that, but ‌it goes beyond just how much you spend.”
Latest NATO estimates show ‌that Britain spent 2.3 percent of the GDP on defense in 2024, above the alliance’s 2 percent guideline. But like other European countries, it has faced US pressure to spend more to protect the continent. Struggling with high debt and spending commitments, the government last ‌year cut its international aid budget to fund the hike in defense spending to 2.5 percent of GDP but is yet to publish an investment plan with spending priorities, something that has frustrated the defense industry.
Britain’s budget watchdog, the Office for Budget Responsibility, said last year that raising defense spending to 3 percent of the GDP would cost an additional £17.3 billion a year ($24 billion) in 2029-30.
Finance Minister Rachel Reeves has struggled to stay on track with her plans to repair the public finances. The BBC said the Finance Ministry was believed to be cautious about the new defense spending proposals.
A government spokesperson said Britain was “delivering ​the largest sustained increase in defense ​spending since the Cold War.”