Oil companies in deals with Iran face sanctions
UNITED STATES: Key members of the U.S. Congress on Tuesday backed a
new legislative effort designed to force the Bush administration to
sanction oil companies and countries that strike deals with Iran, but
the State Department expressed concerns.
The move comes as new multibillion-dollar oil and gas agreements with
Tehran are under negotiation and as the U.N. Security Council debates
expanding existing sanctions on Iran, which many U.S. lawmakers consider
too weak.
Intensifying efforts to persuade Tehran to abandon its nuclear
program, Rep. Tom Lantos, chairman of the House of Representatives
Foreign Affairs Committee, said the only way to achieve this goal
without military action is through diplomacy backed by strong
international sanctions.
In remarks that drew support from Democratic and Republican
colleagues, he accused the administration of abusing its authority by
waiving penalties under the existing U.S. Iran Sanctions Act and
promised “those halcyon days for the oil industry are over.”
“My legislation will increase exponentially the economic pressure on
Iran, and empower our diplomatic efforts by strengthening the Iran
Sanctions Act. It will put an end to the administration’s ability to
waive sanctions against foreign companies that invest in Iran’s energy
industry,” he said.
“If Dutch Shell moves forward with its proposed $10 billion deal with
Iran, it will be sanctioned. If Malaysia moves forward with a similar
deal, it too will be sanctioned. The same treatment will be accorded to
China and India should they finalize deals with Iran,” the California
Democrat said.
Florida Rep. Ileana Ros-Lehtinen, the panel’s senior Republican, said
Iran’s economy is heavily dependent on the energy sector, adding, “We
are at a critical juncture and the opportunity for successful
application of our sanctions has never been greater.”
But Undersecretary of State Nicholas Burns expressed concern that if
the U.S. focus shifts from working with European and other allies to
expand sanctions on Iran, to imposing sanctions on U.S. allies and
foreign companies, the international coalition arrayed against Iran
could unravel.
Even if the Democratic-led House approved the bill, it could be
torpedoed in the Senate, where Democrats have only a one-vote margin, or
vetoed by President Georeg W. Bush. But it does reflect growing alarm
over Iran’s determination to continue uranium enrichment in defiance of
U.N. demands.
Washington, Wednesday, Reuters
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