RS20871
The Iran Sanctions Act (ISA)
March 09, 2009

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Summary

International pressure on Iran to curb its nuclear program is increasing the hesitation of many major foreign firms to invest in Iran's energy sector, hindering Iran's efforts to expand oil production beyond 4.1 million barrels per day. However, Iran continues to attract preliminary energy investment interest from firms primarily in Asia, which appear eager to fill the void left by European majors and to line up steady supplies of Iranian oil and gas. The formal U.S. effort to curb energy investment in Iran began in 1996 with the Iran Sanctions Act (ISA). No firms have been sanctioned under it and the precise effects of that law on energy investment in Iran—as opposed to other factors—has been unclear. In the 110th Congress, two bills passed by the House (H.R. 1400 and H.R. 7112) would add ISA provisions. Some observers expect versions or variations of these bills to be introduced in the 111th Congress. Some additional ideas discussed by observers focus on adding violations of ISA, including: provision of shipping insurance to Iran's tanker fleet; maintaining a business presence in Iran; selling refined gasoline to Iran; or supplying equipment to or performing the construction of oil refineries in Iran. This report will be updated regularly. See CRS Report RL32048, Iran: U.S. Concerns and Policy Responses, by Kenneth Katzman.

    Related Legislation:
  • H.R.1400
  • H.R.7112

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