RS20871
The Iran Sanctions Act (ISA)
May 01, 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 Irans energy sector, hindering Irans efforts to expand oil production beyond 4.1 million barrels per day. However, Iran continues to attract energy investment interest from firms primarily in Asia, which appear eager to fill the void left by major European and American firms 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 Iranas separate from other factors affecting international firms decisions on whether to invest in Iranhas been unclear. In the 110th Congress, two bills passed the House (H.R. 1400 and H.R. 7112) that would add several ISA provisions. As many in Congress express concern about the reticence of U.S. allies, of Russia, and of China, to impose very strict economic sanctions on Iran, versions or variations of these bills have been introduced in the 111th Congress. For example, H.R. 2194, H.R. 1985, and S. 908 would include as ISA violations: selling refined gasoline to Iran; providing shipping insurance or other services to deliver gasoline to Iran; or supplying equipment to or performing the construction of oil refineries in Iran. H.R. 2192 and S. 908 would also expand the menu of available sanctions against violators. 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
  • H.R.2194
  • H.R.1985
  • S.908
  • H.R.2192

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