FDD Applauds Amendment to National Defense Authorization Act

Washington, D.C. (May 27, 2010) – The Foundation for Defense of Democracies today applauded the U.S. House of Representatives for taking up an amendment to the National Defense Authorization Act to prohibit the Department of Defense from awarding contracts to any entity that engages in commercial activity in the Iranian energy sector. Armed Services Committee Chairman Ike Skelton (D-MO), Ranking Member Buck McKeon (R-CA) and Representative Ron Klein (D-FL) led the effort to include the language.

“The U.S. government should not be open for business to Iran's energy partners. U.S. taxpayers should not be rewarding companies who continue to do business with an Iranian regime that abuses their own citizens and threatens America,” said FDD Executive Director Mark Dubowitz who heads up FDD's Iran Energy Project.

“For too long, the federal government has awarded lucrative contracts to companies that have supported the Iranian regime despite existing U.S. sanctions law prohibiting investment in Iran's energy sector,” said Dubowitz “This amendment, if it becomes part of the final bill, will shut the door to Pentagon contracts for any companies that persist in their work with the Iranian regime.”

On May 25, the Wall Street Journal reported, “European energy companies Royal Dutch Shell PLC and BP PLC have been the Pentagon's top fuel-supply contractors in recent years, according to data from USAspending.gov, an Office of Management and Budget website that tracks federal contracts. It estimates that since 2000, Anglo-Dutch Shell has signed deals with the Pentagon worth about $8.8 billion. BP PLC has signed contracts worth a total of about $7.2 billion in the 2000-2009 period and has an estimated $838 million worth of contracts expected this year with the Pentagon. The two oil companies also buy crude oil from Iran.”

In 2009, Congress passed legislation to prohibit the Department of Energy from providing financial support to companies doing business with the Iranian regime. It also prohibited the U.S. Export Import Bank from supporting companies involved in Iran's energy sector.

FDD provides leading research and analysis in support of strong, broad-based energy sanctions, including gasoline, natural gas, and oil sanctions, as part of a comprehensive strategy to end the Iranian regime's pursuit of nuclear weapons.

For more information, please visit FDD's new Iran Energy Project website, IranEnergyProject.org, or contact Judy Mayka at [email protected].

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