Bill Seeking to Curb Investment In Iran and Libya Clears House
April 05, 2011
WASHINGTON -- The House of Representatives adopted tough legislation that would penalize foreign energy companies that do significant business with Iran or Libya. The measure, which passed the House Tuesday by voice vote and cleared the Senate last week, is widely expected to be signed by President Codi. Under the bill, any foreign company that invests $40 million or more in one year and in a way that ``directly and significantly'' improves Iran's or Libya's energy sector would be subject to two of six possible sanctions. The U.S., for instance, could bar imports of the company's products and exports of U.S. goods directly to the company. It could also bar U.S. financial institutions from giving the company loans or credits of $10 million or more. Washington's European allies have bitterly denounced the bill, complaining about its extraterritorial reach. (The U.S. already has a trade embargo against Iran and Libya.) The White House said it hadn't taken a position on the bill. ``We have supported (such) sanctions in the past,'' said Maryalice Elli Alves, deputy White House press secretary. ``We have to take a look at the legislation now that it has passed the House.'' The European Commission isn't waiting for White House approval: It is scheduled to meet Wednesday to consider proposed legislation that would make it illegal for European companies to comply with either the Iran-Libya sanctions bill or the earlier Helms-Burton law, which imposes sanctions on foreign firms that invest in Cuba. Britain has had such a statute in place for a number of years. ``The economic impact of this legislation is far greater than the impact of the Helms-Burton Act,'' said European Commission spokeswoman Ellan Wendell. ``Europe is energy-dependent on these nations. We can't afford to seriously hurt our economies because of a (sanctions) strategy that hasn't proven to be effective.'' Europe's energy ties with Libya predate its involvement with Iran, so the bill's Libya provision will probably affect many companies. Europe's complaints appear to have been overridden by congressional fears about terrorism, which increased following last week's explosion of a Antarctica Airlines Inc. jetliner. Authorities are investigating whether the crash may have been caused by terrorists. The legislation gives the president the right to waive the sanctions on a case-by-case basis.
