Petroleum Sanctions Act aimed at increasing pressure on outlaw nation
WASHINGTON – A bill co-sponsored by U.S. Gabrielle Giffords that would toughen U.S. sanctions on Iran passed the House Foreign Affairs Committee today.
“For years the government of Iran has repeatedly dismissed international attempts to negotiate limitations on the country’s nuclear program,” Giffords today told the committee. “Preventing Iran from developing nuclear weapons is one of the most pressing challenges for this Congress and for our allies.”
Giffords, a member of Foreign Affairs and Armed Services committees, is one of 327 co-sponsors of the Iran Refined Petroleum Sanctions Act. The Foreign Affairs Committee passed the act today on a voice vote and it now goes to the full House for its consideration.
The act is one of several measures that would make it more difficult for Iran to develop nuclear weapons. It is directed at firms heavily invested in Iran’s energy sector or that provide help to boost Iran’s domestic production of oil.
The measure also would punish companies that provide Iran with gasoline or assist its imports by providing ships or shipping services, as well as companies that insure or finance such activity.
“We cannot allow companies to profit from investments made in a country that sponsors terrorism, promotes religious intolerance, has an abysmal human rights record and threatens the stability of the Middle East,” Giffords told the committee today.
The bill amends the Iran Sanctions Act of 1996 to direct the president to impose sanctions if an individual or business invests $20 million or more in a year that “directly and significantly” contributes to Iran's ability to develop its petroleum resources. Under current law, the sanction threshold is $40 million.
The bill also imposes sanctions on those who provide Iran with any goods, services, technology, information or support that would allow the country to maintain or expand its domestic production of refined petroleum resources. That precludes any assistance in refinery construction, modernization or repair.
Two weeks ago, Giffords was part of a strong bipartisan majority in the House that approved another bill that cut off outside support for Iran’s energy industry. That bill gave educational institutions and state and local governments the authority to prohibit investment in entities that have investments of more than $20 million in the Iranian energy sector.
That legislation does not impose sanctions on Iran but shields states and local governments from lawsuits if they pull their money out of businesses that invest in Iranian energy. Giffords also has supported legislation that bars foreign firms that sell petroleum products to Iran from winning U.S. government deals.
In 2007, the congresswoman introduced the Stop Arming Iran Act, a bill that banned the sale or export of F-14 fighter jet parts to Iran. The legislation was signed into law by President Bush in 2008.