US Senate approves 5-year extension of ban on trade with Iran, Libya

The US Senate voted 96-2 late Wednesday to extend for 5 years economic sanctions against companies and countries that do business with Iran and Libya. The House of Representatives is expected to approve a similar renewal soon, although President George W. Bush urged only a 2-year extension.

July 26, 2001

2 min read

By the OGJ Online Staff

WASHINGTON, DC, July 26 -- The US Senate voted 96-2 late Wednesday to extend for 5 years economic sanctions against companies and countries that do business with Iran and Libya.

The House of Representatives is expected to approve a similar extension soon, although President George W. Bush has proposed only a 2-year extension. The administration said Wednesday that "sanctions should be reviewed frequently to assess their effectiveness and continued suitability."

Congress passed the Iran-Libya Sanctions Act in 1996 to punish those nations for their support of terrorist activities. It expires Aug. 5 (OGJ Online, July 18, 2001).

The revised law allows the US to apply sanctions against any company investing more than $20 million/year in the energy production of either nation. Many other countries, especially those with international energy companies, oppose the US sanctions. The US has not applied the sanctions yet to any company, but says they have been an effective deterrent to investment.

In floor debate Wednesday, Sen. Charles Schumer (D-NY) called the two nations "the world's most dangerous outlaw states."

Sen. Paul Sarbanes (D-Md.) said Libya has not made reparations to the victims of the 988 bombing of Pan Am flight 103 over Lockerbie, Scotland, which killed 270 people. And he said Iran has continued to support terrorism and seek to acquire nuclear, biological, and chemical weapons.

Voting against the measure were Sens. Chuck Hagel (R-Neb.) and Richard Lugar (R-Ind.). Sens. George Voinovich (R-Ohio) and Daniel Inouye (D-Ha.) were absent.