Senate Passes Expanded Iran Sanctions Bill

February 2, 2010

Last week, the Senate unanimously passed the Comprehensive Iran Sanctions, Accountability, and Divestment Act (S.2799). The bill would, among other things, greatly expand the Iran Sanctions Act of 1996 by:

• Providing for the divestment of assets in Iran by State and local governments, and other entities.
• Identify locations of concern with respect to transshipment, reexportation, or diversion of sensitive items to Iran.
• Expand the range of financial institutions and businesses subject to sanctions, including oil/gas pipeline and tankers companies.
• Prohibit the U.S. government from contracting with companies that export sensitive communications technology to Iran.
• Codify into law, the U.S. ban on trade with Iran.

In late 2009, the House passed similar legislation targeting Iran’s refined petroleum sector and companies supplying gas to the country. Differences between the two bills will now have to be resolved in conference and passed again by both houses before the president can sign the new sanctions into law.