Reps. Mark Kirk (R-Ill.) and Brad Sherman (D-Calif.) have introduced legislation that would enhance U.S. sanctions on Iran.
The Iran Diplomatic Enhancement Act, which has a bipartisan group of more than 20 co-sponsors, would extend current sanctions to include suppliers, brokers, insurers and tankers carrying gasoline to Iran. In a press release, the two members of Congress say nearly all of Iran’s imported gasoline is provided by five European companies – the Swiss firm Vitol, the Swiss/Dutch firm Trafigura, the French firm Total, the Swiss firm Glencore, and British Petroleum – and the Indian firm Reliance. They add that the majority of tankers carrying gasoline to Iran are insured by Lloyds of London.
The full press release is after the jump:[[READMORE]]
Kirk, Sherman Introduce Bipartisan Legislation to Curb Gasoline Deliveries to Iran, Enhance Diplomacy
Iran relies on imports for 40% of its gasoline –Europe largest supplier;
Iran Diplomatic Enhancement Act targets suppliers, brokers, insurers, tankers
WASHINGTON – U.S. Reps. Mark Kirk (R-Ill.) and Brad Sherman (D-Calif.), along with more than 20 key Democratic and Republican lawmakers, introduced bipartisan legislation last night to extend current U.S. sanctions to suppliers, brokers, insurers and tankers carrying gasoline to the Iran – a critical economic vulnerability that could bolster diplomatic efforts to halt Iran’s nuclear enrichment activities.
Despite its status as a top OPEC nation, Iran lacks the required refining capacity to meet domestic demand for fuel and must import some 40 percent of its gasoline.
“If we are serious about stopping the emergence of a nuclear Iran, our window for effective diplomacy is starting to close,” said Congressman Kirk, co-chair of the Iran Working Group and a Navy Reserve Intelligence Officer. “History teaches that negotiations in the absence of effective sanctions are likely to fail while negotiations following effective sanctions are likely to succeed.”
“We should use every conceivable lever within reach to prevent Iran from becoming a nuclear power and to halt its support of international terrorism,” said Congressman Sherman (D-Calif.), chair of the House Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade. “Iran’s need to import a significant portion of its gasoline is among the best levers we have at our disposal.”
Last year, then-Senator Obama suggested “banning the export of refined petroleum to Iran,” and said such a restriction “starts changing their cost-benefit analysis” and “starts putting the squeeze on them.”
Nearly all of Iran’s imported gasoline is provided by five European companies – the Swiss firm Vitol, the Swiss/Dutch firm Trafigura, the French firm Total, the Swiss firm Glencore, and British Petroleum – and the Indian firm Reliance. The majority of tankers carrying gasoline to Iran are insured by Lloyds of London.
Under the Iran Diplomatic Enhancement Act, any company or individual that supplies, brokers, insures or delivers gasoline to Iran would face sanctions by the U.S. Government. The bill would also apply to entities that help build refineries inside Iran.
“Diplomacy is unlikely to succeed unless the U.S. changes Iran’s cost-benefit analysis," said Orde Kittrie, a law professor at Arizona State University, fellow at the Foundation for Defense of Democracies, and leading expert on nuclear nonproliferation. "Putting Iran’s gasoline suppliers to a choice between selling to Iran and doing business in the U.S. is an excellent way to increase U.S. leverage and help to peacefully stop Iran ’s illegal nuclear program.”
Iran, a party to the Nuclear Non-Proliferation Treaty, stands in violation of five U.N. Security Council resolutions ordering Iran to halt all uranium enrichment activities. According to the International Atomic Energy Agency (IAEA), as of January 31, 2009, Iran has produced more than 1,000 kilograms of low-enriched uranium hexafluoride, which is 30 percent higher than previous IAEA estimates and enough to make one nuclear bomb.
A copy of the Iran Diplomatic Enhancement Act is available upon request.
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