On August 1, Congress voted to impose new sanctions on Iran that target companies aiding Tehran’s energy sector. The Iran Sanctions, Accountability, and Human Rights Act of 2012 differs from President Obama’s July 31 executive order by targeting companies conducting business with Iran’s national oil company and tanker fleet, such as insurers and shippers.
The following are excerpts from the legislation.
Among the economic measures to be taken are…
(3) urgent consideration of the expansion of existing sanctions with respect to such areas as—
(A) the provision of energy-related services to Iran;
(B) the provision of insurance and reinsurance services to Iran;
(C) the provision of shipping services to Iran; and
(D) those Iranian financial institutions not yet designated for the imposition of sanctions that may be acting as intermediaries for Iranian financial institutions that are designated for the imposition of sanctions;
(3) urgent consideration of the expansion of existing sanctions with respect to such areas as—
(A) the provision of energy-related services to Iran;
(B) the provision of insurance and reinsurance services to Iran;
(C) the provision of shipping services to Iran; and
(D) those Iranian financial institutions not yet designated for the imposition of sanctions that may be acting as intermediaries for Iranian financial institutions that are designated for the imposition of sanctions;
Senate Majority Leader Harry Reid released a statement after Congress approved the legislation. The following is an excerpt from the August 2 statement.
At a time when Iran continues to defy the international community with its nuclear weapons program, it is critical we continue to tighten our sanctions regime. This legislation expands our existing sanctions on Iran’s energy sector, and imposes new sanctions targeting shipping and insurance. Iran continues to try to evade existing sanctions. But this legislation, in combination with newly announced measures by the Obama administration, closes loopholes and stops the use of front companies, or financial institutions to get around international sanctions…
On August 1, Rep. Ileana Ros-Lehtinen, Chairman of the House Foreign Affairs Committee, spoke in support of the legislation. The following are excerpts from her remarks.
To get us on that path to victory, I ask my colleagues to render their full support to the Iran Threat Reduction and Syria Human Rights Act of 2012—a bicameral, bipartisan agreement that represents the strongest set of sanctions ever put in place against the regime in Tehran. It blacklists virtually all of Iran’s energy, financial, and transportation sectors, and cuts off companies that keep doing business with Iran from access to our markets in the United States.
This legislation also imposes sanctions to prevent Iran from repatriating any proceeds from its oil sales, depriving the Iranian regime of 80 percent of its hard currency earnings and half of the funds that support its budget. This bill also imposes tough new sanctions on the National Iranian Oil Company, the National Iranian Tanker Company, and Iran’s Islamic Revolutionary Guard Corps. It also targets Iran’s use of barter transactions to bypass sanctions; the provision of insurance to Iran’s energy sector; and the provision of specialized financial messaging services to the Central Bank of Iran…