Download 9426_Sanctions on Iran

Sanctions on Iran
Existing legislation concerning Iran sanctions
United States sanctions against Iran are codified by the United States Treasury under the
Iranian Sanctions Regulations (ITR), incorporating the three prurient Executive Orders
and subsequent amendments. (Executive orders regarding Iranian sanctions given prior to
1995 have been replaced as sources of legal framework by subsequent Executive Orders)
1995: Executive Order 12957
Development of Iranian Petroleum Resources
http://treas.gov/offices/enforcement/ofac/legal/eo/12957.pdf
1995: Executive Order 12959
http://treas.gov/offices/enforcement/ofac/legal/eo/12959.pdf
1997: Executive Order 13059
http://treas.gov/offices/enforcement/ofac/legal/eo/13059.pdf
2000: Amendment by the Secretary of State to allow U.S. persons to purchase and
import carpets and food products such as dried fruits, nuts, and caviar
from Iran.
2008: US depository institutions are now prohibited from processing transfers
involving Iran that originate and end with non-Iranian foreign banks (called Uturn transfers)
Summary of the current Iranian Transaction Regulations
 Imports: only limited gifts, textiles/carpets, foodstuffs and information
can be imported to the US from Iran
 Exports: in general, a person may not export goods, technology or
services to Iran from the US, with limited exceptions specified by the
Commerce Department
 Dealing in Iranian goods or services: except as specified by amendments
regarding carpets and foodstuffs, US persons are not allowed to deal in
Iranian goods or services
 Financial Dealings with Iran: don’t. With limited exceptions
 Iranian Petroleum Industry: “U.S. persons may not trade in
Iranian oil or petroleum products refined in Iran, nor may they finance
such trading. Similarly, U.S. persons may not perform services,
including financing services, or supply goods or technology that would
benefit the Iranian oil industry.”
 Travel to Iran: transactions, living expenses and baggage importation
arising from travel into and out of Iran are permitted
http://treas.gov/offices/enforcement/ofac/programs/iran/iran.pdf
H.R.3107: Iran and Libya Sanctions Act of 1996 (now just the Iran Sanctions Act)
The Iran and Libya Sanctions Act of 1996 imposes new sanctions on foreign
companies that engage in specified economic transactions with Iran or Libya.
The bill sanctions foreign companies that provide new investments over $40
million for the development of petroleum resources in Iran or Libya.
The bill also sanctions foreign companies that violate existing U.N. prohibitions
against trade with Libya in certain goods and services such as arms, certain oil
equipment, and civil aviation services.
The bill was extended in 2006 for five more years. No foreign firm has been
penalized so far.
http://www.usembassy-israel.org.il/publish/press/security/archive/august/ds1_87.htm
http://www.fas.org/sgp/crs/row/RS20871.pdf
October 2007: Washington imposed sanctions on Bank Melli, Bank Mellat and Bank
Saderat and branded the Revolutionary Guards a proliferator of weapons of mass
destruction.
January 2008: sanctions were imposed on Brigadier-General Ahmed Foruzandeh of the
Qods force for fomenting violence in Iraq.
Sanctions on the table
(texts below)
H.R. 1327: Iran Sanctions Enabling Act of 2009
Sponsor: Barney Frank
To authorize State and local governments to direct divestiture from, and prevent
investment in, companies with investments of $20,000,000 or more in Iran's energy
sector, and for other purposes


Authorizes state and local governments to divest the assets of their pension funds and any
other funds under their control from companies on the list.
Protects fund managers who divest from companies from lawsuits directed at them by
investors who are unhappy with the results.
http://www.govtrack.us/congress/bill.xpd?bill=h111-1327
H.R. 2194: Iran Refined Petroleum Sanctions Act of 2009
Sponser: Rep. Howard Berman
To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic efforts
with respect to Iran by expanding economic sanctions against Iran.
 Requires that any foreign entity that sells refined petroleum to Iran - or otherwise
enhances Iran’s ability to import refined petroleum such as financing, brokering,
underwriting, or providing ships for such activity - will be effectively barred from
doing business in the United States.

The act expands previous act to include financial institutions and expand the
description of petroleum resources.
http://www.govtrack.us/congress/bill.xpd?bill=h111-2194
http://televisionwashington.com/floater_article1.aspx?lang=en&t=3&id=12689
Financial Strangulation Campaign
I did not find any new information on Treasury arm-twisting lately, but one would think
that Geithner’s trip (which is supposed to address Iran, among other things) was
something which involved this sort of pressuring
An article about US Under Secretary of the Treasury Stuart Levey trip to Europe, where
he pressured banks and governments to cooperate on US-leveled Iran sanctions
http://www.spiegel.de/international/business/0,1518,497319,00.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=a69bruS9A7q4
Texts of Upcoming Legislation
Text of H.R. 2194: Iran Refined Petroleum Sanctions Act of 2009
HR 2194 IH
111th CONGRESS
1st Session
H. R. 2194
To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic
efforts with respect to Iran by expanding economic sanctions against Iran.
IN THE HOUSE OF REPRESENTATIVES
April 30, 2009
Mr. BERMAN (for himself, Ms. ROS-LEHTINEN, Mr. ACKERMAN, Mr.
BURTON of Indiana, Mr. SHERMAN, Mr. ROYCE, Mr. ANDREWS, and Mr.
KIRK) introduced the following bill; which was referred to the Committee on
Foreign Affairs, and in addition to the Committees on Financial Services,
Oversight and Government Reform, and Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
A BILL
To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic
efforts with respect to Iran by expanding economic sanctions against Iran.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Iran Refined Petroleum Sanctions Act of 2009’.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings- Congress finds the following:
(1) The illicit nuclear activities of the Government of Iran--combined with its
development of unconventional weapons and ballistic missiles, and support for
international terrorism--represent a serious threat to the security of the United
States and U.S. allies in Europe, the Middle East, and around the world.
(2) The United States and other responsible nations have a vital interest in
working together to prevent the Government of Iran from acquiring a nuclear
weapons capability.
(3) The International Atomic Energy Agency has repeatedly called attention to
Iran’s unlawful nuclear activities, and, as a result, the United Nations Security
Council has adopted a range of sanctions designed to encourage the Government
of Iran to cease those activities and comply with its obligations under the Treaty
on the Non-Proliferation of Nuclear Weapons (commonly known as the ‘Nuclear
Non-Proliferation Treaty’).
(4) As a presidential candidate, then-Senator Obama stated that additional
sanctions, especially those targeting Iran’s dependence on imported refined
petroleum, may help to persuade the Government of Iran to abandon its illicit
nuclear activities.
(5) On October 7, 2008, then-Senator Obama stated, ‘Iran right now imports
gasoline, even though it’s an oil producer, because its oil infrastructure has broken
down. If we can prevent them from importing the gasoline that they need and the
refined petroleum products, that starts changing their cost-benefit analysis. That
starts putting the squeeze on them.’.
(6) On June 4, 2008, then-Senator Obama stated, ‘We should work with Europe,
Japan, and the Gulf states to find every avenue outside the U.N. to isolate the
Iranian regime--from cutting off loan guarantees and expanding financial
sanctions, to banning the export of refined petroleum to Iran.’.
(7) Major European allies, including the United Kingdom, France, and Germany,
have advocated that sanctions be significantly toughened should international
diplomatic efforts fail to achieve verifiable suspension of Iran’s uranium
enrichment program and an end to its nuclear weapons program and other illicit
nuclear activities.
(8) The serious and urgent nature of the threat from Iran demands that the United
States work together with U.S. allies to do everything possible--diplomatically,
politically, and economically--to prevent Iran from acquiring a nuclear weapons
capability.
(b) Sense of Congress- It is the sense of the Congress that-(1) international diplomatic efforts to address Iran’s illicit nuclear efforts,
unconventional and ballistic missile development programs, and support for
international terrorism are more likely to be effective if the President is
empowered with the explicit authority to impose additional sanctions on the
Government of Iran;
(2) the concerns of the United States regarding Iran are strictly the result of the
actions of the Government of Iran; and
(3) the people of the United States-(A) have feelings of friendship for the people of Iran;
(B) regret that developments in recent decades have created impediments to that
friendship; and
(C) hold the people of Iran, their culture, and their ancient and rich history in the
highest esteem.
(c) Statement of Policy- It should be the policy of the United States to-(1) support international diplomatic efforts to end Iran’s uranium enrichment
program and its nuclear weapons program;
(2) encourage foreign governments to direct state-owned entities to cease all
investment in, and support of, Iran’s energy sector and all exports of refined
petroleum products to Iran;
(3) encourage foreign governments to require private entities based in their
territories to cease all investment in, and support of, Iran’s energy sector and all
exports of refined petroleum products to Iran;
(4) impose sanctions on the Central Bank of Iran and any other Iranian bank or
financial institution engaged in proliferation activities or support of terrorist
groups; and
(5) work with the allies of the United States to take appropriate measures to
protect the international financial system from deceptive and illicit practices by
Iranian banks and financial institutions involved in proliferation activities or
support of terrorist groups.
SEC. 3. AMENDMENTS TO THE IRAN SANCTIONS ACT OF
1996.
(a) Expansion of Sanctions- Section 5(a) of the Iran Sanctions Act of 1996 (50
U.S.C. 1701 note) is amended to read as follows:
‘(a) Sanctions With Respect to the Development of Petroleum Resources of Iran
and Exportation of Refined Petroleum to Iran‘(1) DEVELOPMENT OF PETROLEUM RESOURCES OF IRAN‘(A) INVESTMENT- Except as provided in subsection (f), the President shall
impose 2 or more of the sanctions described in paragraphs (1) through (6) of
section 6(a) if the President determines that a person has, with actual knowledge,
on or after the date of the enactment of this Act, made an investment of
$20,000,000 or more (or any combination of investments of at least $5,000,000
each, which in the aggregate equals or exceeds $20,000,000 in any 12-month
period), that directly and significantly contributed to the enhancement of Iran’s
ability to develop petroleum resources of Iran.
‘(B) PRODUCTION OF REFINED PETROLEUM RESOURCES- Except as
provided in subsection (f), the President shall impose the sanctions described in
section 6(b) (in addition to any sanctions imposed under subparagraph (A)) if the
President determines that a person has, with actual knowledge, on or after the date
of the enactment of the Iran Refined Petroleum Sanctions Act of 2009, sold,
leased, or provided to Iran any goods, services, technology, information, or
support that would allow Iran to maintain or expand its domestic production of
refined petroleum resources, including any assistance in refinery construction,
modernization, or repair.
‘(2) EXPORTATION OF REFINED PETROLEUM RESOURCES TO IRANExcept as provided in subsection (f), the President shall impose the sanctions
described in section 6(b) if the President determines that a person has, with actual
knowledge, on or after the date of the enactment of the Iran Refined Petroleum
Sanctions Act of 2009, provided Iran with refined petroleum resources or engaged
in any activity that could contribute to the enhancement of Iran’s ability to import
refined petroleum resources, including-‘(A) providing ships or shipping services to deliver refined petroleum resources to
Iran;
‘(B) underwriting or otherwise providing insurance or reinsurance for such
activity; or
‘(C) financing or brokering such activity.’.
(b) Description of Sanctions- Section 6 of such Act is amended--
(1) by striking ‘The sanctions to be imposed on a sanctioned person under section
5 are as follows:’ and inserting the following:
‘(a) In General- The sanctions to be imposed on a sanctioned person under
subsections (a)(1)(A) and (b) of section 5 are as follows:’; and
(2) by adding at the end the following:
‘(b) Additional Sanctions- The sanctions to be imposed on a sanctioned person
under paragraphs (1)(B) and (2) of section 5(a) are as follows:
‘(1) FOREIGN EXCHANGE- The President shall, under such regulations as the
President may prescribe, prohibit any transactions in foreign exchange by the
sanctioned person.
‘(2) BANKING TRANSACTIONS- The President shall, under such regulations
as the President may prescribe, prohibit any transfers of credit or payments
between, by, through, or to any financial institution, to the extent that such
transfers or payments involve any interest of the sanctioned person.
‘(3) PROPERTY TRANSACTIONS- The President shall, under such regulations
as the President may prescribe, prohibit any acquisition, holding, withholding,
use, transfer, withdrawal, transportation, importation, or exportation of, dealing
in, or exercising any right, power, or privilege with respect to, or transactions
involving, any property in which the sanctioned person has any interest by any
person, or with respect to any property, subject to the jurisdiction of the United
States.’.
(c) Presidential Waiver- Section 9(c)(2) of such Act is amended by amending
subparagraph (C) to read as follows:
‘(C) an estimate of the significance of the provision of the items described in
paragraph (1) or (2) of section 5(a) or section 5(b) to Iran’s ability to develop its
petroleum resources, to maintain or expand its domestic production of refined
petroleum resources, to import refined petroleum resources, or to develop its
weapons of mass destruction or other military capabilities (as the case may be);
and’.
(d) Strengthening of Waiver Authority and Sanctions Implementation(1) INVESTIGATIONS- Section 4(f) of the Iran Sanctions Act of 1996 (50
U.S.C. 1701 note) is amended-(A) in paragraph (1)-(i) by striking ‘should initiate’ and inserting ‘shall immediately initiate’;
(ii) by inserting ‘or 5(b)’ after ‘section 5(a)’; and
(iii) by striking ‘as described in such section’ and inserting ‘as described in
section 5(a)(1) or other activity described in section 5(a)(2) or 5(b) (as the case
may be)’;
(B) in paragraph (2), by striking ‘, pursuant to section 5(a), if a person has
engaged in investment activity in Iran as described in such section’ and inserting
‘, pursuant to section 5(a) or (b) (as the case may be), if a person has engaged in
investment activity in Iran as described in section 5(a)(1) or other activity
described in section 5(a)(2) or 5(b) (as the case may be)’; and
(C) by adding at the end the following new paragraph:
‘(3) DEFINITION OF CREDIBLE INFORMATION- For the purposes of this
subsection, the term ‘credible information’ means public or classified information
or reporting supported by other substantiating evidence.’.
(2) EXCEPTION FOR PROLIFERATION SECURITY INITIATIVE- Section
5(f) of the Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is amended-(A) in paragraph (6), by striking ‘or’ at the end;
(B) in paragraph (7), by striking the period at the end and inserting ‘; or’; and
(C) by adding at the end the following new paragraph:
‘(8) if the President determines in writing that the person to which the sanctions
would otherwise be applied is-‘(A) a citizen or resident of a country that is a participant in the Proliferation
Security Initiative; or
‘(B) a foreign person that is organized under the laws of a country described in
subparagraph (A) and is a subsidiary of a United States person.’.
(3) GENERAL WAIVER AUTHORITY- Section 9(c)(1) of the Iran Sanctions
Act of 1996 (50 U.S.C. 1701 note) is amended by striking ‘important to the
national interest of the United States’ and inserting ‘vital to the national security
interest of the United States’.
(4) RULE OF CONSTRUCTION- The amendments made by this subsection shall
not be construed to affect any exercise of the authority of section 4(f) or section
9(c) of the Iran Sanctions Act of 1996 as in effect on the day before the date of the
enactment of this Act.
(e) Reports on United States Efforts To Curtail Certain Business Transactions
Relating to Iran- Section 10 of such Act is amended by adding at the end the
following:
‘(d) Reports on Certain Business Transactions Relating to Iran‘(1) IN GENERAL- Not later than 90 days after the date of the enactment of the
Iran Refined Petroleum Sanctions Act of 2009, and every 6 months thereafter, the
President shall submit a report to the appropriate congressional committees
regarding any person who has-‘(A) provided Iran with refined petroleum resources;
‘(B) sold, leased, or provided to Iran any goods, services, or technology that
would allow Iran to maintain or expand its domestic production of refined
petroleum resources; or
‘(C) engaged in any activity that could contribute to the enhancement of Iran’s
ability to import refined petroleum resources.
‘(2) DESCRIPTION- For each activity set forth in subparagraphs (A) through (C)
of paragraph (1), the President shall provide a complete and detailed description
of such activity, including-‘(A) the date or dates of such activity;
‘(B) the name of any persons who participated or invested in or facilitated such
activity;
‘(C) the United States domiciliary of the persons referred to in subparagraph (B);
‘(D) any Federal Government contracts to which the persons referred to in
subparagraph (B) are parties; and
‘(E) the steps taken by the United States to respond to such activity.
‘(3) FORM OF REPORTS; PUBLICATION- The reports required under this
subsection shall be-‘(A) submitted in unclassified form, but may contain a classified annex; and
‘(B) published in the Federal Register.’.
(f) Clarification and Expansion of Definitions- Section 14 of such Act is
amended-(1) in paragraph (13)(B)-(A) by inserting ‘financial institution, insurer, underwriter, guarantor, any other
business organization, including any foreign subsidiary, parent, or affiliate of such
a business organization,’ after ‘trust,’; and
(B) by inserting ‘, such as an export credit agency’ before the semicolon at the
end; and
(2) by amending paragraph (14) to read as follows:
‘(14) PETROLEUM RESOURCES‘(A) IN GENERAL- The term ‘petroleum resources’ includes petroleum,
petroleum by-products, oil or liquefied natural gas, oil or liquefied natural gas
tankers, and products used to construct or maintain pipelines used to transport oil
or compressed or liquefied natural gas.
‘(B) PETROLEUM BY-PRODUCTS- The term ‘petroleum by-products’ means
gasoline, kerosene, distillates, propane or butane gas, diesel fuel, residual fuel oil,
and other goods classified in headings 2709 and 2710 of the Harmonized Tariff
Schedule of the United States.’.
(g) Conforming Amendments(1) MULTILATERAL REGIME- Section 4 of such Act is amended-(A) in subsection (b)(2), by striking ‘(in addition to that provided in subsection
(d))’; and
(B) by striking subsection (d) and redesignating subsections (e) and (f) as
subsections (d) and (e), respectively.
(2) IMPOSITIONS OF SANCTIONS- Section 5(b) of such Act is amended by
striking ‘section 6’ and inserting ‘section 6(a)’.
Text of H.R. 1327: Iran Sanctions Enabling Act of 2009
111th CONGRESS
1st Session
H. R. 1327
To authorize State and local governments to direct divestiture from, and prevent
investment in, companies with investments of $20,000,000 or more in Iran’s
energy sector, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 5, 2009
Mr. FRANK of Massachusetts (for himself, Mr. BERMAN, Mr. SHERMAN, and
Mr. MEEKS of New York) introduced the following bill; which was referred to
the Committee on Financial Services
A BILL
To authorize State and local governments to direct divestiture from, and prevent
investment in, companies with investments of $20,000,000 or more in Iran’s
energy sector, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of
America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Iran Sanctions Enabling Act of 2009’.
SEC. 2. FINDINGS.
The Congress finds as follows:
(1) There is an increasing interest by States, local governments, educational
institutions, and private institutions to seek to disassociate themselves from
companies that directly or indirectly support the Government of Iran’s efforts to
achieve a nuclear weapons capability.
(2) Policy makers and fund managers may find moral, prudential, or reputational
reasons to divest from companies that accept the business risk of operating in
countries that are subject to international economic sanctions or that have
business relationships with countries, governments, or entities with which any
United States company would be prohibited from dealing because of economic
sanctions imposed by the United States.
SEC. 3. AUTHORITY OF STATE AND LOCAL GOVERNMENTS
TO DIVEST FROM CERTAIN COMPANIES INVESTED IN
IRAN’S ENERGY SECTOR.
(a) Statement of Policy- It is the policy of the United States to support the
decision of State governments, local governments, and educational institutions to
divest from, and to prohibit the investment of assets they control in, persons that
have investments of more than $20,000,000 in Iran’s energy sector.
(b) Authority To Divest- Notwithstanding any other provision of law, a State or
local government may adopt and enforce measures that meet the requirements of
subsection (d) to divest the assets of the State or local government from, or
prohibit investment of the assets of the State or local government in, any person
that the State or local government determines, using credible information
available to the public, engages in investment activities in Iran described in
subsection (c).
(c) Investment Activities in Iran Described- A person engages in investment
activities in Iran described in this subsection if the person-(1) has an investment of $20,000,000 or more-(A) in the energy sector of Iran; or
(B) in a person that provides oil or liquified natural gas tankers, or products used
to construct or maintain pipelines used to transport oil or liquified natural gas, for
the energy sector in Iran; or
(2) is a financial institution that extends $20,000,000 or more in credit to another
person, for 45 days or more, if that person will use the credit to invest in the
energy sector in Iran.
(d) Requirements- The requirements referred to in subsection (b) that a measure
taken by a State or local government must meet are the following:
(1) NOTICE- The State or local government shall provide written notice to each
person to whom the State or local government, as the case may be, intends to
apply the measure, of such intent.
(2) TIMING- The measure shall apply to a person not earlier than the date that is
90 days after the date on which the person receives the written notice required by
paragraph (1).
(3) OPPORTUNITY FOR HEARING- The State or local government shall
provide each person referred to in paragraph (1) with an opportunity to
demonstrate to the State or local government, as the case may be, that the person
does not engage in investment activities in Iran described in subsection (c). If the
person demonstrates to the State or local government that the person does not
engage in investment activities in Iran described in subsection (c), the measure
shall not apply to the person.
(4) SENSE OF THE CONGRESS ON AVOIDING ERRONEOUS
TARGETING- It is the sense of the Congress that a State or local government
should not adopt a measure under subsection (b) with respect to a person unless
the State or local government has made every effort to avoid erroneously targeting
the person and has verified that the person engages in investment activities in Iran
described in subsection (c).
(e) Notice to Department of Justice- Not later than 30 days after adopting a
measure pursuant to subsection (b), a State or local government shall submit to
the Attorney General of the United States a written notice which describes the
measure.
(f) Nonpreemption- A measure of a State or local government authorized under
subsection (b) is not preempted by any Federal law or regulation.
(g) Definitions- In this section:
(1) INVESTMENT- The ‘investment’ of assets, with respect to a State or local
government, includes-(A) a commitment or contribution of assets;
(B) a loan or other extension of credit; or
(C) the entry into or renewal of a contract for goods or services.
(2) ASSETS(A) IN GENERAL- Except as provided in subparagraph (B), the term ‘assets’
refers to public monies and includes any pension, retirement, annuity, or
endowment fund, or similar instrument, that is controlled directly or indirectly by
a State or local government.
(B) EXCEPTION- The term ‘assets’ does not include employee benefit plans
covered by title I of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001 et seq.).
(h) Effective Date(1) IN GENERAL- Except as provided in paragraph (2), this section shall apply to
measures adopted by a State or local government before, on, or after the date of
the enactment of this Act.
(2) NOTICE REQUIREMENTS- Subsections (d) and (e) apply to measures
adopted by a State or local government on or after the date of the enactment of
this Act.
SEC. 4. SAFE HARBOR FOR CHANGES OF INVESTMENT
POLICIES BY ASSET MANAGERS.
Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C. 80a13(c)(1)) is amended by inserting before the period the following: ‘or engage in
investment activities in Iran described in section 3(c) of the Iran Sanctions
Enabling Act of 2009’.
SEC. 5. SENSE OF CONGRESS REGARDING CERTAIN ERISA
PLAN INVESTMENTS.
It is the sense of Congress that a fiduciary of an employee benefit plan, as defined
in section 3(3) of the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1002(3)), may divest plan assets from, or avoid investing plan assets in,
any person the fiduciary determines engages in investment activities in Iran
described in section 3(c) of this Act, without breaching the responsibilities,
obligations, or duties imposed upon the fiduciary by section 404 of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1104), if-(1) the fiduciary makes such determination using credible information that is
available to the public; and
(2) such divestment or avoidance of investment is conducted in accordance with
section 2509.94-1 of title 29, Code of Federal Regulations (as in effect on the day
before the date of the enactment of this Act).
SEC. 6. DEFINITIONS.
In this title:
(1) ENERGY SECTOR- The term ‘energy sector’ refers to activities to develop
petroleum or natural gas resources or nuclear power.
(2) FINANCIAL INSTITUTION- The term ‘financial institution’ has the
meaning given that term in section 14(5) of the Iran Sanctions Act of 1996 (Public
Law 104-172; 50 U.S.C. 1701 note).
(3) IRAN- The term ‘Iran’ includes any agency or instrumentality of Iran.
(4) PERSON- The term ‘person’ means-(A) a natural person, corporation, company, business association, partnership,
society, trust, or any other nongovernmental entity, organization, or group;
(B) any governmental entity or instrumentality of a government, including a
multilateral development institution (as defined in section 1701(c)(3) of the
International Financial Institutions Act (22 U.S.C. 262r(c)(3))); and
(C) any successor, subunit, parent company, or subsidiary of any entity described
in subparagraph (A) or (B).
(5) STATE- The term ‘State’ means each of the several States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern Mariana
Islands.
(6) STATE OR LOCAL GOVERNMENT- The term ‘State or local government’
includes-(A) any State and any agency or instrumentality thereof;
(B) any local government within a State, and any agency or instrumentality
thereof;
(C) any other governmental instrumentality; and
(D) any public institution of higher education within the meaning of the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 7. SUNSET.
This Act shall terminate 30 days after the date on which the President has certified
to the Congress that-(1) the Government of Iran has ceased providing support for acts of international
terrorism and no longer satisfies the requirements for designation as a statesponsor of terrorism for purposes of section 6(j) of the Export Administration Act
of 1979, section 620A of the Foreign Assistance Act of 1961, section 40 of the
Arms Export Control Act, or any other provision of law; or
(2) Iran has ceased the pursuit, acquisition, and development of nuclear,
biological, and chemical weapons and ballistic missiles and ballistic missile
launch technology.
Other Sources:
FACT SHEET: THE IRAN AND LIBYA SANCTIONS ACT OF 1996
(Imposes new sanctions on foreign companies)
August 6, 1996
http://www.usembassy-israel.org.il/publish/press/security/archive/august/ds1_8-7.htm
Washington -- A White House Fact Sheet says the Iran and Libya Sanctions Act of 1996
imposes new sanctions on foreign companies that engage in specified economic
transactions with Iran or Libya.
The bill sanctions foreign companies that provide new investments over $40 million for
the development of petroleum resources in Iran or Libya.
The bill also sanctions foreign companies that violate existing U.N. prohibitions against
trade with Libya in certain goods and services such as arms, certain oil equipment, and
civil aviation services.
Following is the official text of a fact sheet from the White House:
(begin text)
FACT SHEET: THE IRAN AND LIBYA SANCTIONS ACT OF 1996
President Clinton has led the fight against terrorism and will continue to take measures to
further pressure and punish states that support it.
Purpose: The Iran and Libya Sanctions Act of 1996 imposes new sanctions on foreign
companies that engage in specified economic transactions with Iran or Libya. It is
intended to:
-- Help deny Iran and Libya revenues that could be used to finance international
terrorism;
-- Limit the flow of resources necessary to obtain weapons of mass destruction; and,
-- Put pressure on Libya to comply with U.N. resolutions that, among other things, call
for Libya to extradite for trial the accused perpetrators of the Pan Am 103 bombing.
The Sanctions: The bill sanctions foreign companies that provide new investments over
$40 million for the development of petroleum resources in Iran or Libya. The bill also
sanctions foreign companies that violate existing U.N. prohibitions against trade with
Libya in certain goods and services such as arms, certain oil equipment, and civil aviation
services. If a violation occurs, President Clinton is to impose two out of seven possible
sanctions against the violating company. These sanctions include:
-- denial of Export-Import Bank assistance;
-- denial of export licenses for exports to the violating company;
-- prohibition on loans or credits from U.S. financial institutions of over $10 million in
any 12-month period;
-- prohibition on designation as a primary dealer for U.S. government debt instruments;
-- prohibition on serving as an agent of the United States or as a repository for U.S.
government funds;
-- denial of U.S. government procurement opportunities (consistent with WTO
obligations); and
-- a ban on all or some imports of the violating company.
This Bill is Another Step in U.S. Efforts to Enforce Compliance:
-- prohibition on serving as an agent of the United States or as a repository for U.S.
government funds;
-- denial of U.S. government procurement opportunities (consistent with WTO
obligations); and
-- a ban on all or some imports of the violating company.
This Bill is Another Step in U.S. Efforts to Enforce Compliance from Iran and Libya:
-- In 1984, Iran was placed on the list of states that support international terrorism,
triggering statutory sanctions that prohibit weapons sales, oppose all loans to Iran from
international financial institutions, and prohibit all assistance to Iran.
-- In 1987, the U.S. further prohibited the importation of any goods or services from Iran
and U.S. naval and air forces struck Iranian naval units on several occasions in response
to Iranian efforts to disrupt the flow of oil from the Persian Gulf with naval mines and
missile attacks.
-- In 1995, President Clinton imposed comprehensive sanctions on Iran, prohibiting all
commercial and financial transactions with Iran.
-- In January 1986, the United States imposed comprehensive sanctions against Libya
that froze Libyan assets, and banned all trade and financial dealings with Libya. Two
months later, U.S. Air Force and Navy jets bombed Libyan targets in retaliation for
Libyan terrorist attacks on Americans in Europe.
-- In March 1992, the U.S. supported the imposition of sanction against Libya which
prohibited the export of petroleum, military or aviation equipment to Libya; prohibited
commercial flights to or from Libya; limited Libyan diplomatic representation abroad;
and restricted Libyan financial activities.
-- In addition, the United States has worked with our allies to further isolate Libya both
internationally and within the Middle East and to develop new methods to pressure
Qadhafi to comply with the U.N. Security Council Resolutions directed at Libya.
Obama administration mulling Iran gasoline sanctions
Updated: Monday, August 03, 2009
http://televisionwashington.com/floater_article1.aspx?lang=en&t=3&id=12689
Washington, 3 August (WashingtonTV)—The Obama administration has held talks with
US lawmakers, its European allies and Israel about the possibility of imposing tough
economic sanctions against Iran, if it rebuffed Washington’s offer to negotiate over its
nuclear program, the New York Times reported on Monday.
Officials from Europe and Israel told the daily that administration officials had discussed
the option of penalizing foreign companies that supply Iran with gasoline and other
refined oil products, in a bid to pressure Tehran to curb its nuclear ambitions.
Israeli officials said that US National Security Adviser James Jones raised the issue
during a visit to Israel last week.
And European diplomats confirmed that in recent weeks, they held private discussions
with Obama administration officials about whether to move towards such sanctions if
Tehran ignored calls to respond to Washington’s outreach by September.
The White House would not comment on any of the discussions.
Last week, the Senate approved a measure that would bar companies that sell gasoline
and other refined oil products to Iran, from also receiving US Energy Department
contracts to deliver crude to the US Strategic Petroleum Reserve.
Similar legislation is expected to pass in the House of Representatives.
Although Iran is a large exporter of oil, a lack of refining capacity forces the country to
import as much as 40 percent of its gasoline.
Iran rejects Western accusations that it is seeking a nuclear bomb, saying its nuclear
program is geared only towards civilian purposes.