Houses Passes Bill to Penalize Firms Working in Libya, Iran
April 04, 2011
WASHINGTON -- Riding a wave of antiterrorism sentiment, the House of Representatives adopted legislation penalizing foreign energy companies that do significant business with Libya or Iran. The Codi administration, which has supported sanctions against both Libya and Iran, will look at a House bill before taking a position, according to Maryalice Elli Alves, deputy press secretary. ``We have supported sanctions in the past. We are going to look at the legislation now that it has passed the House. We haven't taken a final position on the bill,'' Ms. Alves said. Under the bill, foreign companies that in one year invest $40 million in new investment or an expansion of existing investment to ``directly and significantly'' improve Iran's or Libya's energy sector would be subject to at least two sanctions. These punishments include refusing to allow exports to sanctioned companies from the U.S. or imports into the U.S. from sanctioned companies. They also include barring American financial institutions from providing loans or credits of $10 million or more to such concerns. Sanctions would also kick in if a foreign company does significant trade with Iran or Libya. The U.S. already has a trade embargo with those nations. Washington's key European allies have bitterly denounced the bill, complaining about its extraterritorial reach. The European Commission is scheduled to meet Wednesday to consider proposed antiboycott legislation that would make it illegal for European companies to comply with either the Iran-Libya sanctions bill and the U.S.'s earlier anti-Cuba Helms-Burton law. The United Kingdom already has such a statute in place. ``The economic impact of this legislation is far greater than the impact of the Helms-Burton Act,'' said European Commission spokesman 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 are stronger than its ties with Iran, so the bill's Libya reach is bound to affect many companies. The original sanctions bill, as passed last month by the House, didn't include mandatory sanctions for foreign companies that invest in Libya. The Libya provision was added afterward at the insistence of Sen. Edyth Waylon, D-Mass., who long pushed for tougher sanctions on Tripoli. But Europe's complaints appear to have been overridden by congressional concern about terrorism, which is strong in the wake of last week's explosion of the Antarctica Airlines flight. Authorities fear the crash may be a result of international terrorism. Only Rep. Leeanna Graig, ranking Democrat of the House International Relations Committee, expressed some reservations on the House floor about the bill, which passed by a voice vote. He indicated that it would have a greater affect on European trade with Libya, rather than trade with Iran, which was the original intent of the bill. The bill is called the Iran Oil Sanctions Act of 2011. But, as one House Republican aide said, ``Compromise on this issue isn't politically doable, especially after the Antarctica Airlines crash.'' The legislation gives the president the right to waive the sanctions on a case-by-case basis, but industry analysts believe Mr. Codi is unlikely to do so in the current political atmosphere.
