The Cable

Senators press for “crippling sanctions” against Iran without exemptions

While the State Department works to combat Iran’s nuclear propaganda at the UN, back in Washington a group of bipartisan senators are doubling down on their promise to push for tough Iran sanctions legislation that does not include "cooperating country" exemptions that State wants. The House and Senate began conference on the two bills last week, ...

While the State Department works to combat Iran’s nuclear propaganda at the UN, back in Washington a group of bipartisan senators are doubling down on their promise to push for tough Iran sanctions legislation that does not include "cooperating country" exemptions that State wants.

The House and Senate began conference on the two bills last week, one led by Senate Banking Committee chairman Chris Dodd, D-CT, and the other led by House Foreign Affairs chairman Howard Berman, D-CA. The main change that State wants the conference to make to the legislation is to have the bill waive corporate sanctions for countries that are deemed to be "cooperating" with the new sanctions regime.

According to Deputy Secretary James Steinberg (pdf), the waiver is needed to avoid upsetting countries the U.S. needs to bring along on its push for multilateral action. Critics fear it will be used to exempt some of Iran’s biggest trading partners, Russia and China, in exchange for their support for a new U.N. resolution

"We would find it difficult to support any conference report that would weaken the House and Senate passed sanctions by providing exemptions to companies or countries engaged in the refined petroleum trade with Iran," reads the May 3 letter from Sens. Jon Kyl, R-AZ, Chuck Schumer, D-NY, John Cornyn, R-TX, Dick Durbin, D-IL, Susan Collins, R-ME, Kent Conrad, D-ND, Evan Bayh, D-IN, Sam Brownback, R-KS, John McCain, R-AZ, and Kit Bond, R-MO.

"In particular, we are skeptical about any revision to the legislation that would exempt countries engaged in otherwise engaged in sanctionable activities because they are incorporated in so-called ‘cooperating countries.’"

The senators also expressed their opposition to any changes in the legislation that would weaken sanctions of Iran’s energy sector at all and made an argument supporting the inclusion of new language from McCain targeting Iranian officials guilty of human rights abuses. McCain was promised strong support for that in exchange for him allowing the original Senate bill to move off the Senate floor.

The senators wrote that the administration’s ongoing drive to seek a new sanctions resolution at the UN Council was "complementary" to Congressional action but that the conference must be completed as soon as possible, "regardless of progress at the UN."

Secretary of State Hillary Clinton, speaking to press in New York Monday, rejected the claims by Iranian President Mahmoud Ahmadinejad that Iran had accepted the IAEA’s proposal for transferring its nuclear material to a third country. Clinton reiterated that the U.S. is pursuing the "pressure track" but declined to use the term "crippling sanctions" as she has done in the past.

"For all the bluster of its words, the Iranian Government cannot defend its own actions, and that is why it is facing increasing isolation and pressure from the international community," she said.

 Twitter: @joshrogin

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