FDD Congratulates Bipartisan Group of Senators for Iran Sanctions Bill

Calls on Administration for More Sanctions Against Iran's Energy Partners and Human Rights Abusers

Washington, D.C. (May 25, 2011) – FDD congratulates a bipartisan group of Senators for sponsoring dramatic new sanctions in response to Iran's ongoing nuclear activities. The Iran, North Korea and Syria Sanctions Consolidation Act of 2011 was introduced by Senators Jon Kyl (R-AZ), Joseph Lieberman (I-CT), and Robert Menendez (D-NJ). Original cosponsors of the bill were Senators Robert Casey (D-PA), Mark Kirk (R-IL), Kirsten Gillibrand (D-NY), and Susan Collins (R-ME).  The bill would advance the cause of human rights in Iran, and increase pressure on international companies that continue to do business with the country's energy sector.

Like its companion legislation in the House, the Iran Threat Reduction Act, this new legislation strengthens language relating to human rights, and singles out Iran's Islamic Revolutionary Guard Corps (IRGC), the agents responsible for the country's nuclear program, internal repression and support for terrorism. The bill targets the IRGC's dominant role in the country's crude oil and natural gas supply chains and sanctions activities involving the IRGC or any of its affiliates that are directly and significantly involved in the development, extraction, production, transportation, or sale of such petroleum. The bill also prohibits vessels from landing in the U.S. if the vessel had entered a port in Iran, North Korea or Syria during the 180-days period prior to arrival in the U.S.

The bill would also require sanctions on international entities that provide Iran's leaders with the goods and technologies they use to commit human rights abuses. It would require the President to appoint a Special Representative on Human Rights and Democracy in Iran, and reauthorize the Iran Freedom Support Act, requiring internet-based outreach to the Iranian people, and a comprehensive strategy to promote internet freedom, secure communications technology, and open access to information in Iran. It would also enable higher education for members of the Baha'i faith who are banned by the Iranian regime from pursuing university studies.

“The legislation provides the most comprehensive support to date for measures that provide both material and moral support for Iran's courageous dissidents,” said Mark Dubowitz, FDD's executive director who heads the foundation's projects on human rights and energy sanctions. “Economic sanctions must be coupled with tougher human rights sanctions that don't let abusers and facilitators act without consequence.”

“For the first time, the new legislation also targets Iran's oil and natural gas exports, in which the IRGC play a dominant role,” Dubowitz continued. “It applies pressure in all areas of Iran's petroleum business. The United Nations and over 30 countries have sanctioned the IRGC or IRGC-related persons and companies. Hundreds of IRGC front companies, including a number identified by FDD, are involved in Iran's multi-billion dollar petroleum supply chain, the source of the regime's wealth and power. This bill reflects an economic reality: if you're buying oil or natural gas from Iran, you're likely buying business from the IRGC and that's bad for business, bad for your reputation and could bring significant penalties.”

Yesterday, the White House also announced sanctions against a number of companies providing refined petroleum to Iran.

“The Obama administration has sanctioned PDVSA, a major state-owned energy company and Iranian partner, as well as other large providers of gasoline to Iran. These are good steps but much more needs to be done,” said Dubowitz. “These PDVSA sanctions are a strike against two radical regimes, Iran and Venezuela. But other state-owned energy companies, notably from China, are much more strategic to Iran's energy sector”

“The sanctions against some of Iran's other refined petroleum suppliers — companies which are hardly household names but are very familiar to my organization — make it clear that many companies are still ignoring U.S. law and providing the Iranian regime with its critical gasoline needs,” Dubowitz continued. “These companies will not go quietly into the night. They must be meaningfully punished or no company will take U.S. sanctions seriously. The administration must now go after the other major gasoline traders which remain central to the gasoline trade with Iran.”

“These sanctions must be enforced in order to send ripples of fear throughout the energy sector,” said Dubowitz. “This new legislation and the new executive order from President Obama hopefully signal a renewed commitment to enforce existing sanctions and ratchet up the pressure on the Iranian regime.”

The new legislation closes loopholes and advances a number of measures in the Comprehensive Iran Sanctions, Divestment and Accountability Act (CISADA), which President Obama signed into law in July 2010. Among other things, it would expose overseas joint business ventures with Iranian energy entities to sanctions, sanction companies that provide support for Iran's port facilities, railroads, roads and other infrastructure that support the transportation of refined petroleum products, and require the Department of State to respond to requests for information about pending sanctions information from members of Congress.

The bill draws on extensive FDD research provided to the U.S. government and Congress on the role of the IRGC in the crude oil supply chain, on the numerous loopholes in U.S. sanctions laws being exploited by Iran, and on foreign companies that provide tools of oppression to the Iranian regime in furtherance of its human rights abuses.

In a study published on May 4, FDD reports on a number of such products and companies. For a copy of the full report, please visit http://www.defenddemocracy.org/images/IHR_Initial_Findings.pdf.

To see the full body of FDD’s work on Iran, please visit http://www.iranenergyproject.org/.

To discuss FDD’s work on the IRGC and the oil trade, Iran's gasoline trade, the Iranian energy sector, human rights issues or for more information on the Foundation for Defense of Democracies’ research on Iran, please contact David Donadio at [email protected] or (202) 207-3692.