AFP, Washington, Oct 14, 2009 – The US House of Representatives passed legislation Wednesday to ramp up economic pressure on Tehran over its suspect nuclear program by punishing firms that do business in Iran’s energy sector.
The bill, which sailed through by a 414-6 vote, permits US states, local governments and pension funds to end investments in firms that have 20 million dollars or more invested in Iran’s petroleum or natural gas operations.
’The risks posed by a nuclear Iran — from threats to our allies, to a Middle Eastern arms race, to a nuclear umbrella for terrorists — are too grave to ignore,’ said Democratic House Majority Leader Steny Hoyer.
Hoyer said he backed President Barack Obama’s diplomatic engagement with Iran but warned that the voted showed ’the window for engagement will not remain open indefinitely.’
The legislation does not directly impose sanctions on Iran, but shields states and local governments from lawsuits if they pull their money out of such businesses.
’No one in this country ought to involuntarily have his or her money put to the support of the Iranian economy,’ said Democratic House Financial Services Committee Chairman Barney Frank, the bill’s lead author.
Nineteen states and Washington have enacted laws or other policies to divest their pension funds from international firms that do business with Iran, while US companies are already barred from doing business with the Islamic republic.
’This legislation gives a strong ’go signal’ to state and local leaders around America to get out of Iran,’ said Representative Mark Kirk, the measure’s lead Republican author.
Democratic Senator Bob Casey and Republican Senator Sam Brownback have crafted similar legislation in the Senate and has 36 co-sponsors.
Both chambers must approve identical legislation before it can go to Obama to sign into law.
And lawmakers may soon take more severe action, with pending legislation that would impose sanctions on companies that help Iran import gasoline and other refined petroleum products to meet its domestic energy needs.
’For diplomacy to succeed, we must provide our diplomats more tools for their diplomatic toolbox,’ said Kirk, who is also a lead author of that legislation.
The House-approved measure covers any firm that invests 20 million dollars or more in Iran’s energy sector, provides that sum as a credit to be used for such an investments, or provides oil or liquefied natural gas tankers or products used to construct or maintain oil or natural gas pipelines in Iran.