Foreign Investment in UK: Sanctions

(asked on 19th November 2025) - View Source

Question to the Foreign, Commonwealth & Development Office:

To ask His Majesty's Government how the UK's international sanctions regime has impacted foreign direct investment in the UK over the past three years, and what analysis they have undertaken to assess this impact.


Answered by
Baroness Chapman of Darlington Portrait
Baroness Chapman of Darlington
Minister of State (Development)
This question was answered on 16th December 2025

The Foreign, Commonwealth and Development Office undertakes a pre-designation assessment of the impact of a sanctions designation on the UK economy as part of the decision-making process.  The government also publishes impact assessments alongside sanctions-related legislation.

While these assessments seek to be as comprehensive as possible, it is difficult to analyse the direct impact of sanctions on foreign direct investment (FDI), given the complex mix of factors that affect FDI, including geopolitical tensions, regulatory changes, and trade agreements.

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