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US House approves Iran nuclear sanctions

Barrett

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US House approves Iran nuclear sanctions
Wednesday, 16 Dec, 2009


WASHINGTON: The US House of Representatives on Tuesday overwhelmingly approved sanctions legislation aimed at forcing Iran to freeze its nuclear program by depriving the Islamic republic of gasoline.

The measure would empower US President Barack Obama to effectively block firms that supply Iran with refined petroleum products, or the ability to import or produce them at home, from doing business in the United States.

‘The prospect of a nuclear-armed Iran is the most serious and urgent strategic challenge faced by the United States, and we must use all of the diplomatic means at our disposal – including tougher sanctions – to prevent that from becoming a reality,’ said Democratic Representative Howard Berman.

The House passed the bill, which has yet to clear the Senate, by a 412-12 margin with four voting ‘present.’

A top US senator said recently that the body will not act on Iran sanctions in 2009.

Because of a lack of domestic refining capacity, oil-rich Iran is dependent on gasoline imports to meet about 40 per cent of domestic consumption.

Iran gets most of those imports from the Swiss firm Vitol, the Swiss/Dutch firm Trafigura, France’s Total, the Swiss firm Glencore and British Petroleum, as well as the Indian firm Reliance.

Berman, the measure’s lead author and chairman of the House Foreign Affairs Committee, said US lawmakers had to act because Iran had rejected Obama’s attempts at engagement with ‘contempt.’

Democratic Representative Stephen Lynch criticized the bill, comparing it to the US embargo on Cuba and warning it would cause Iranians to ‘rally around the flag’ against the United States and ‘undermine’ pro-democracy protestors.

‘This will unify the Iranian people against us,’ agreed Republican Representative Ron Paul, another foe of the measure.

But Representative Eric Cantor, the number two House Republican, called the legislation ‘one of our best chances to convince Iran that it is firmly in its interest to abandon its nuclear ambitions.’

The measure calls for the US president to slap sanctions on individuals or entities that provide Iran goods, services, technology or information that helps Tehran boost its domestic production of refined petroleum products.

It also proposes sanctions on companies that help Iran import gasoline, including companies that fund the shipments, shipping firms, or their underwriters.

And it calls for sanctions on individuals or entities that invest at least 20 million dollars in Iran’s energy sector, toughening a 1996 sanctions law.

The legislation includes fairly sweeping presidential powers to exempt a person or firm from sanctions, including the ability to spare citizens or residents of countries belonging to a US anti-proliferation initiative.

Iran says its nuclear program is for civilian energy purposes and denies Western charges that it seeks an atomic arsenal and could have one in a few years.

‘This holiday season we must be careful not to give Iran what is at the top of its wish list and what it needs most to achieve its nuclear ambitions: The gift of time,’ said Mark Wallace, president of the United Against Nuclear Iran advocacy group.

The bill would also require six-month reports on any person aiding Iran to produce or obtain refined petroleum products.

Republican Representative Mark Kirk, who has been running for Obama’s old Senate seat, said the sanctions, if properly enforced, could end the nuclear standoff ‘without a shot being fired.’

The White House meanwhile Tuesday defended Obama’s open hand policy towards Iran after Hillary Clinton said nearly a year of offering dialogue to the Islamic state had achieved little progress.

‘I think that represents real and genuine progress that the president believes will pay dividends in the coming weeks,’ said spokesman Robert Gibbs, pointing to statements of the permanent five members of the United Nations Security Council and Germany condemning Iran’s nuclear program, including Russia and China.

http://www.dawn.com/wps/wcm/connect...s-house-approves-iran-nuclear-sanctions-ha-01
 
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Iran being the fourth biggest oil producer and Russia being its biggest consumer. How will Iran play its oil card after the sanctions in place.
Expert opinions please.

Thanks
 
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Iran being the fourth biggest oil producer and Russia being its biggest consumer. How will Iran play its oil card after the sanctions in place.
Expert opinions please.

Thanks

International oil demand is at lowest level at the moment and remain for few years due to recession , but Iran is already reached very close to nuke capability .

They are ready for any US sanction or possible aggression by US or Israel, which is not possible untill Afghanistan and Iraq wars finished.
 
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All the more reason for Iran to concentrate on refining their domestic capacity. These sanctions will prove that they are counter-productive and that the Iranians will achieve what they are after. I'm sure both Russia and China will seize this opportunity with both hands.
 
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Tehran says its nuclear programme is only for peaceful purposes and has rejected an offer to have most of its low-enriched uranium sent abroad by the end of the year for further enrichment.

In recent years, companies such as British Petroleum (BP) and Reliance, an Indian firm, have backed away from supplying Iran, but other firms have filled the gap in imports.

Trafigura and Vitol, both European companies; International Petroleum Group, based in Kuwait; and Malaysia's Petronas are among those that are currently supplying Iran.
 
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As of this Decemeber according to Iranian officials India's Reliance is still supplying gasoline. It would be shooting ourselves in the foot if India actually comes under pressure and stops supplying gasoline to Iran when there are more than enough companies to pick up the slack including European and Chinese.

Tehran Times: Iran continues buying petrol from India: official
 
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Real anger of US is on Iran is stop selling its oil in dollar , also suggested other OPEC members to follow same strategy.

It will be great blow to dollar market value and ultimately burden on US economy already struggling due heavy burden of debts arround 80 Trillion USD.
Iran stops selling oil in U.S. dollars -report | Markets | Reuters

Iran has been spending huge amounts of cash for its refineries and they claim to be self sufficient for their Gasoline consumption by 2012.
Hence if Iran is able to refine its crude oil for its own consumption, the Sanctions on Iran will prove to be meaningless.
 
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