US senators introduce bipartisan Iran-Libya sanctions bill

A bipartisan group of US senators Thursday introduced companion legislation to a House bill to renew a controversial law that would punish foreign oil companies that invest more than $20 million/year in Iran or $40 million/year in Libya. The White House may not block the proposal.

June 7, 2001

2 min read

By the OGJ Online Staff

WASHINGTON, DC, June 7 -- A bipartisan group of US senators Thursday introduced companion legislation to a House effort to renew legislation that would punish foreign oil companies that invest more than $20 million/year in Iran or $40 million/year in Libya.

The bill was sponsored by Sens. Chuck Schumer (D-NY) and Gordon Smith (R-Ore.).

In the House, a similar bill was introduced by Subcommittee on the Middle East Chairman Benjamin Gilman (R-NY), a sponsor of the original Iran-Libya Sanctions Act, which expires in August.

There is widespread support in Congress to extend the law through August 2006 (OGJ Online, May 23, 2001).

The White House has signaled it may not oppose the bill even though it is vehemently opposed by industry. Vice-Pres. Dick Cheney, when he was chairman of Halliburton Co., said the sanctions were counterproductive and should be repealed.

But in a recent speech to business leaders, Cheney indicated that sanctions may still be warranted in "some circumstances" although he stressed the need for sunset provisions so policymakers can revisit the issue if a country changes its behavior (OGJ Online, May 25, 2001).

Bill sponsors say the current legislation has helped discourage investment. "Of the 55 major petroleum development projects for which Iran has sought foreign investment in the last 5 years, only a half dozen have received any foreign investment, and none have been completed," they said.