Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



New Iran Sanctions Legislation Tabled in U.S. Congress - Canadians Should Watch This Legislation

On April 30, 2009, Representative Howard Berman (D-CA), Chairman of the House Foreign Affairs Committee introduced the Iran Refined Petroleum Sanctions Act of 2009.  To review a copy of the Iran Refined Petroleum Sanctions Act of 2009, go to the following link - http://www.hcfa.house.gov/111/HR2192.pdf

Canadian companies should know about this U.S. legislation because IT APPEARS TO HAVE EXTRATERRITORIAL EFFECT.  Canada's legislation implements the United nations Security Council Resolutions relating to Iran into Canadian laws.  In other words, Canadian legislation prohibits export to Iran of goods that are covered by the UN Security Council Resolutions.  The U.S. legislation goes further than Canada's laws.

The Iran Refined Petroleum Sanctions Act of 2009 is an amendment to Iran Sanctions Act of 1996. The Iran Refined Petroleum Sanctions Act targets any foreign entity that sells refined petroleum to Iran, or otherwise enhances Iran’s ability to import refined petroleum such as financing, brokering, underwriting, or providing ships for such activity; as well as those assisting Iran’s effort to increase its domestic refining capacity.  Such persons will be effectively barred from doing business in the United States. The legislation also applies to any entity that provides goods or services that enhance Iran’s ability to maintain or expand its domestic production of refined petroleum. The legislation would also authorize “stronger penalties against these firms, including a ban on conducting business in the United States."

The Iran Refined Petroleum Sanctions Act of 2009 proposes to penalize foreign energy companies that sell refined petroleum products to Iran and the insurance companies that insure the tankers destined for that country. It also appears to cover goods and services providers who have a connection to the petroleum industry --even those companies that sell products (e.g., steel) that can be used in the petroleum industry (e.g. oil and gas tubular goods). The bill appears to impose sanctions on any entity that provides goods or services that enhance Iran’s ability to maintain or expand its domestic production of refined petroleum, including any assistance in refinery constructions, modernization or repair.

The bill is being sponsored by Senators Evan Bayh (D-IN), Joe Lieberman (ID-CT), Jon Kyl (R-AZ), Kit Bond (R-MO), Barbara Boxer (D-CA), Sam Brownback (R-KS), Richard Burr (R-NC), Ben Cardin (D-MD), Tom Coburn (R-OK), Susan Collins (R-ME), Russ Feingold (D-WI), Lindsey Graham (R-SC), James Inhofe (R-OK), Mike Johanns (R-NE), Amy Klobuchar (D-MN), Mary Landrieu (D-LA), Robert Menendez (D-NJ), Barbara Mikulski (D-MD), Patty Murray (D-WA), James Risch (R-ID), Charles Schumer (D-NY), Debbie Stabenow (D-MI), John Thune (R-SD), David Vitter (R-LA) and Ron Wyden (D-OR).

 

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