[House Document 112-74]
[From the U.S. Government Printing Office]



112th Congress, 1st Session - - - - - - - - - - - - - House Document 112-74


 
    EXECUTIVE ORDER WITH RESPECT TO THE ACTIONS AND POLICIES OF THE 
                           GOVERNMENT OF IRAN

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

  NOTIFICATION OF AN EXECUTIVE ORDER THAT TAKES ADDITIONAL STEPS WITH 
RESPECT TO THE NATIONAL EMERGENCY DECLARED IN EXECUTIVE ORDER 12957 OF 
                             MARCH 15, 1995




  November 22, 2011.--Message and accompanying papers referred to the 
         Committee on Foreign Affairs and ordered to be printed
To the Congress of the United States:
    Pursuant to the International Emergency Economic Powers Act 
(50 U.S.C. 1701 et seq.) (IEEPA), I hereby report that I have 
issued an Executive Order (the ``order'') that takes additional 
steps with respect to the national emergency declared in 
Executive Order 12957 of March 15, 1995.
    In Executive Order 12957, the President found that the 
actions and policies of the Government of Iran threaten the 
national security, foreign policy, and economy of the United 
States. To deal with that threat, the President in Executive 
Order 12957 declared a national emergency and imposed 
prohibitions on certain transactions with respect to the 
development of Iranian petroleum resources. To further respond 
to that threat, Executive Order 12959 of May 6, 1995, imposed 
comprehensive trade and financial sanctions on Iran. Executive 
Order 13059 of August 19, 1997, consolidated and clarified the 
previous orders.
    In the Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 (Public Law 111-195) (22 U.S.C. 8501 et 
seq.) (CISADA), which I signed into law on July 1, 2010, the 
Congress found that the illicit nuclear activities of the 
Government of Iran, along with its development of 
unconventional weapons and ballistic missiles and its support 
for international terrorism, threaten the security of the 
United States. The Congress also found in CISADA that economic 
sanctions imposed pursuant to the provisions of CISADA, the 
Iran Sanctions Act of 1996 (Public Law 104-172) (50 U.S.C. 1701 
note) (ISA), and IEEPA, and other authorities available to the 
United States to prevent Iran from developing nuclear weapons, 
are necessary to protect the essential security interests of 
the United States. To take additional steps with respect to the 
national emergency declared in Executive Order 12957 and to 
implement section 105(a) of CISADA (22 U.S.C. 8514(a)), I 
issued Executive Order 13553 on September 28, 2010, to impose 
sanctions on officials of the Government of Iran and other 
persons acting on behalf of the Government of Iran determined 
to be responsible for or complicit in certain serious human 
rights abuses. To take additional steps with respect to the 
threat posed by Iran and to provide implementing authority for 
a number of the sanctions set forth in ISA, as amended by, 
inter alia, CISADA, I issued Executive Order 13574 on May 23, 
2011, to authorize the Secretary of the Treasury to implement 
certain sanctions imposed pursuant to ISA by the Secretary of 
State.
    This order expands upon actions taken pursuant to ISA, as 
amended by, inter alia, CISADA. The ISA requires that, absent a 
waiver, the President impose at least three of nine possible 
forms of sanctions on persons determined to have made certain 
investments in Iran's energy sector. The CISADA expanded ISA 
to, inter alia, require the same treatment of persons 
determined to have provided refined petroleum to Iran above 
specified monetary thresholds or have provided certain goods, 
services, technology, information, or support to Iran related 
to the importation or development of refined petroleum. This 
order authorizes the Secretary of State to impose similar 
sanctions on persons determined to have provided certain goods, 
services, technology, or support that contributes to either 
Iran's development of petroleum resources or to Iran's 
production of petrochemicals, two sectors that continue to fund 
Iran's illicit nuclear activities and that could serve as 
conduits for Iran to obtain proliferation sensitive technology. 
Because CISADA has impeded Iran's ability to develop its 
domestic refining capacity, Iran has tried to compensate by 
using its petrochemical facilities to refine petroleum. These 
new authorities will allow the United States to target directly 
Iran's attempts to subvert U.S. sanctions.
    This order authorizes the Secretary of State, in 
Consultation with the Secretary of the Treasury, the Secretary 
of of Commerce, and the United States Trade Representative, and 
with the President of the Export-Import Bank, the Chairman of 
the Board of Governors of the Federal Reserve System, and other 
agencies and officials as appropriate, to impose sanctions on a 
person upon determining that the person:
           knowingly, on or after the effective date of 
        the order, sells, leases, or provides to Iran goods, 
        services, technology, or support that has a fair market 
        value of $1,000,000 or more or that, during a 12-month 
        period, has an aggregate fair market value of 
        $5,000,000 or more, and that could directly and 
        significantly contribute to the maintenance or 
        enhancement of Iran's ability to develop petroleum 
        resources located in Iran;
           knowingly, on or after the effective date of 
        this order, sells, leases, or provides to Iran goods, 
        services, technology, or support that has a fair market 
        value of $250,000 or more or that, during a 12-month 
        period, has an aggregate fair market value of 
        $1,000,000 or more, and that could directly and 
        significantly contribute to the maintenance or 
        expansion of Iran's domestic production of 
        petrochemical products;
           is a successor entity to a person that 
        engaged in a provision of goods, services, technology, 
        or support for which sanctions may be imposed pursuant 
        to this new order;
           owns or controls a person that engaged in 
        provision of goods, services, technology, or support 
        for which sanctions may be imposed pursuant to this new 
        order and had actual knowledge or should have known 
        that the person engaged in the activities; or
           is owned or controlled by, or under common 
        ownership or control with, a person that engaged in the 
        provision of goods, services, technology, or support 
        for which sanctions may be imposed pursuant to this new 
        order, and knowingly participated in the provision of 
        such goods, services, technology, or support.
    The following sanctions may be selected for imposition on a 
person that the Secretary of State determines to meet any of 
the above criteria:
           the Board of Directors of the Export-Import 
        Bank shall deny approval of the issuance of any 
        guarantee, insurance, extension of credit, or 
        participation in an extension of credit in connection 
        with the export of any goods or services to the 
        sanctioned person;
           agencies shall not issue any specific 
        license or grant any other specific permission or 
        authority under any statute that requires the prior 
        review and approval of the United States Government as 
        a condition for the export or reexport of goods or 
        technology to the sanctioned person;
           with respect to a sanctioned person that is 
        a financial institution, the Chairman of the Board of 
        Governors of the Federal Reserve System and the 
        President of the Federal Reserve Bank of New York shall 
        take such actions as they deem appropriate, including 
        denying designation, or terminating the continuation of 
        any prior designation of, the sanctioned person as a 
        primary dealer in United States Government debt 
        instruments; or agencies shall prevent the sanctioned 
        person from serving as an agent of the United States 
        Government or serving as a repository for United States 
        Government funds;
           agencies shall not procure, or enter into a 
        contract for the procurement of, any goods or services 
        from the sanctioned person;
           the Secretary of the Treasury shall prohibit 
        any United States financial institution from making 
        loans or providing credits to the sanctioned person 
        totaling more than $10,000,000 in any 12-month period 
        unless such person is engaged in activities to relieve 
        human suffering and the loans or credits are provided 
        for such activities;
           the Secretary of the Treasury shall prohibit 
        any transactions in foreign exchange that are subject 
        to the jurisdiction of the United States and in which 
        the sanctioned person has any interest;
           the Secretary of the Treasury shall prohibit 
        any transfers of credit or payments between financial 
        institutions or by, through, or to any financial 
        institution, to the extent that such transfers or 
        payments are subject to the jurisdiction of the United 
        States and involve any interest of the sanctioned 
        person;
           the Secretary of the Treasury shall block 
        all property and interests in property that are in the 
        United States, that come within the United States, or 
        that are or come within the possession or control of 
        any United States person, including any foreign branch, 
        of the sanctioned person, and provide that such 
        property and interests in property may not be 
        transferred, paid, exported, withdrawn, or otherwise 
        dealt in; or
           the Secretary of the Treasury shall restrict 
        or prohibit imports of goods, technology, or services, 
        directly or indirectly, into the United States from the 
        sanctioned person.
    I have delegated to the Secretary of the Treasury the 
authority, in consultation with the Secretary of State, to take 
such actions, including the promulgation of rules and 
regulations, and to employ all powers granted to the President 
by IEEPA as may be necessary to carry out the purposes of 
section 3 of the order. All agencies of the United States 
Government are directed to take all appropriate measures within 
their authority to carry out the provisions of the order.
    I am enclosing a copy of the Executive Order I have issued.

                                                      Barack Obama.
    The White House, November 20, 2011.
                            Executive Order

                              ----------                              


  Authorizing the Imposition of Certain Sanctions With Respect to the 
Provision of Goods, Services, Technology, or Support for Iran's Energy 
                       and Petrochemical Sectors

    By the authority vested in me as President by the 
Constitution and the laws of the United States of America, 
including the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 
U.S.C. 1601 et seq.), and section 301 of title 3, United States 
Code, and in order to take additional steps with respect to the 
national emergency declared in Executive Order 12957 of March 
15, 1995,
    I, BARACK OBAMA, President of the United States of America, 
hereby order:
    Section 1. The Secretary of State, in consultation with the 
Secretary of the Treasury, the Secretary of Commerce, and the 
United States Trade Representative, and with the President of 
the Export-Import Bank, the Chairman of the Board of Governors 
of the Federal Reserve System, and other agencies and officials 
as appropriate, is hereby authorized to impose on a person any 
of the sanctions described in section 2 or 3 of this order upon 
determining that the person:
    (a) knowingly, on or after the effective date of this 
order, sells, leases, or provides to Iran goods, services, 
technology, or support that has a fair market value of 
$1,000,000 or more or that, during a 12-month period, has an 
aggregate fair market value of $5,000,000 or more, and that 
could directly and significantly contribute to the maintenance 
or enhancement of Iran's ability to develop petroleum resources 
located in Iran;
    (b) knowingly, on or after the effective date of this 
order, sells, leases, or provides to Iran goods, services, 
technology, or support that has a fair market value of $250,000 
or more or that, during a 12-month period, has an aggregate 
fair market value of $1,000,000 or more, and that could 
directly and significantly contribute to the maintenance or 
expansion of Iran's domestic production of petrochemical 
products;
    (c) is a successor entity to a person referred to in 
subsection (a) or (b) of this section;
    (d) owns or controls a person referred to in subsection (a) 
or (b) of this section, and had actual knowledge or should have 
known that the person engaged in the activities referred to in 
that subsection; or
    (e) is owned or controlled by, or under common ownership or 
control with, a person referred to in subsection (a) or (b) of 
this section, and knowingly participated in the activities 
referred to in that subsection.
    Sec. 2. When the Secretary of State, in accordance with the 
terms of section 1 of this order, has determined that a person 
meets any of the criteria described in section 1 and has 
selected any of the sanctions set forth below to impose on that 
person, the heads of relevant agencies, in consultation with 
the Secretary of State, shall take the following actions where 
necessary to implement the sanctions imposed by the Secretary 
of State:
    (a) the Board of Directors of the Export-Import Bank shall 
deny approval of the issuance of any guarantee, insurance, 
extension of credit, or participation in an extension of credit 
in connection with the export of any goods or services to the 
sanctioned person;
    (b) agencies shall not issue any specific license or grant 
any other specific permission or authority under any statute 
that requires the prior review and approval of the United 
States Government as a condition for the export or reexport of 
goods or technology to the sanctioned person;
    (c) with respect to a sanctioned person that is a financial 
institution:
          (i) the Chairman of the Board of Governors of the 
        Federal Reserve System and the President of the Federal 
        Reserve Bank of New York shall take such actions as 
        they deem appropriate, including denying designation, 
        or terminating the continuation of any prior 
        designation of, the sanctioned person as a primary 
        dealer in United States Government debt instruments; or
          (ii) agencies shall prevent the sanctioned person 
        from serving as an agent of the United States 
        Government or serving as a repository for United States 
        Government funds; or
    (d) agencies shall not procure, or enter into a contract 
for the procurement of, any goods or services from the 
sanctioned person.
    (e) The prohibitions in subsections (a)-(d) of this section 
apply except to the extent provided by statutes, or in 
regulations, orders, directives, or licenses that may be issued 
pursuant to this order, and notwithstanding any contract 
entered into or any license or permit granted prior to the date 
of this order.
    Sec. 3. (a) When the Secretary of State, in accordance with 
the terms of section 1 of this order, has determined that a 
person has engaged in the activities described in section 1 and 
has selected any of the sanctions set forth below to impose on 
that person, the Secretary of the Treasury, in consultation 
with the Secretary of State, shall take the following actions 
where necessary to implement the sanctions imposed by the 
Secretary of State:
          (i) prohibit any United States financial institution 
        from making loans or providing credits to the 
        sanctioned person totaling more than $10,000,000 in any 
        12-month period unless such person is engaged in 
        activities to relieve human suffering and the loans or 
        credits are provided for such activities;
          (ii) prohibit any transactions in foreign exchange 
        that are subject to the jurisdiction of the United 
        States and in which the sanctioned person has any 
        interest;
          (iii) prohibit any transfers of credit or payments 
        between financial institutions or by, through, or to 
        any financial institution, to the extent that such 
        transfers or payments are subject to the jurisdiction 
        of the United States and involve any interest of the 
        sanctioned person;
          (iv) block all property and interests in property 
        that are in the United States, that come within the 
        United States, or that are or come within the 
        possession or control of any United States person, 
        including any foreign branch, of the sanctioned person, 
        and provide that such property and interests in 
        property may not be transferred, paid, exported, 
        withdrawn, or otherwise dealt in; or
          (v) restrict or prohibit imports of goods, 
        technology, or services, directly or indirectly, into 
        the United States from the sanctioned person.
    (b) I hereby determine that, to the extent section 
203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) may apply, the making 
of donations of the type of articles specified in such section 
by, to, or for the benefit of any sanctioned person whose 
property and interests in property are blocked pursuant to 
subsection (a)(iv) of this section would seriously impair my 
ability to deal with the national emergency declared in 
Executive Order 12957, and I hereby prohibit such donations as 
provided by subsection (a)(iv) of this section.
    (c) The prohibitions in subsection (a)(iv) of this section 
include, but are not limited to:
          (i) the making of any contribution or provision of 
        funds, goods, or services by, to, or for the benefit of 
        any sanctioned person whose property and interests in 
        property are blocked pursuant to this order; and
          (ii) the receipt of any contribution or provision of 
        funds, goods, or services from any such sanctioned 
        person.
    (d) The prohibitions in subsection (a) of this section 
apply except to the extent provided by statutes, or in 
regulations, orders, directives, or licenses that may be issued 
pursuant to this order, and notwithstanding any contract 
entered into or any license or permit granted prior to the 
effective date of this order.
    Sec. 4. (a) Any transaction by a United States person or 
within the United States that evades or avoids, has the purpose 
of evading or avoiding, causes a violation of, or attempts to 
violate any of the prohibitions set forth in this order is 
prohibited.
    (b) Any conspiracy formed to violate any of the 
prohibitions set forth in this order is prohibited.
    Sec. 5. For the purposes of this order:
    (a) the term ``person'' means an individual or entity;
    (b) the term ``entity'' means a partnership, association, 
trust, joint venture, corporation, group, subgroup, or other 
organization;
    (c) the term ``United States person'' means any United 
States citizen, permanent resident alien, entity organized 
under the laws of the United States or any jurisdiction within 
the United States (including foreign branches), or any person 
in the United States;
    (d) the term ``financial institution'' includes (i) a 
depository institution (as defined in section 3(c)(1) of the 
Federal Deposit Insurance Act) (12 U.S.C. 1813(c)(1)), 
including a branch or agency of a foreign bank (as defined in 
section 1(b)(7) of the International Banking Act of 1978) (12 
U.S.C. 3101(7)); (ii) a credit union; (iii) a securities firm, 
including a broker or dealer; (iv) an insurance company, 
including an agency or underwriter; and (v) any other company 
that provides financial services;
    (e) the term ``United States financial institution'' means 
a financial institution (including its foreign branches) 
organized under the laws of the United States or any 
jurisdiction within the United States or located in the United 
States;
    (f) the term ``sanctioned person'' means a person on whom 
the Secretary of State, in accordance with the terms of section 
1 of this order, has determined to impose sanctions pursuant to 
section 1;
    (g) the term ``to develop'' petroleum resources means to 
explore for, or to extract, refine, or transport by pipeline, 
petroleum resources;
    (h) the term ``Iran'' means the Government of Iran and the 
territory of Iran and any other territory or marine area, 
including the exclusive economic zone and continental shelf, 
over which the Government of Iran claims sovereignty, sovereign 
rights, or jurisdiction, provided that the Government of Iran 
exercises partial or total de facto control over the area or 
derives a benefit from economic activity in the area pursuant 
to international arrangements;
    (i) the term ``Government of Iran'' includes the Government 
of Iran, any political subdivision, agency, or instrumentality 
thereof, and any person owned or controlled by, or acting for 
or on behalf of, the Government of Iran;
    (j) the term ``knowingly,'' with respect to a conduct, a 
circumstance, or a result, means that the person has actual 
knowledge, or should have known, of the conduct, the 
circumstance, or the result;
    (k) the term ``petroleum resources'' includes petroleum, 
oil, natural gas, liquefied natural gas, and refined petroleum 
products;
    (l) the term ``refined petroleum products'' means diesel, 
gasoline, jet fuel (including naptha-type and kerosene-type jet 
fuel), and aviation gasoline; and
    (m) the term ``petrochemical products'' includes any 
aromatic, olefin, and synthesis gas, and any of their 
derivatives, including ethylene, propylene, butadiene, benzene, 
toluene, xylene, ammonia, methanol, and urea.
    Sec 6. For those persons whose property and interests in 
property are blocked pursuant to this order who might have a 
constitutional presence in the United States, I find that 
because of the ability to transfer funds or other assets 
instantaneously, prior notice to such persons of measures to be 
taken pursuant to section 3(a)(iv) of this order would render 
those measures ineffectual. I therefore determine that for 
these measures to be effective in addressing the national 
emergency declared in Executive Order 12957, there need be no 
prior notice of an action taken pursuant to section 3(a)(iv) of 
this order.
    Sec. 7. The Secretary of the Treasury, in consultation with 
the Secretary of State, is hereby authorized to take such 
actions, including the promulgation of rules and regulations, 
and to employ all powers granted to the President by IEEPA as 
may be necessary to carry out the purposes of section 3 of this 
order. The Secretary of the Treasury may redelegate any of 
these functions to other officers and agencies of the United 
States Government consistent with applicable law. All agencies 
of the United States Government are hereby directed to take all 
appropriate measures within their authority to carry out the 
provisions of this order.
    Sec. 8. This order is not intended to, and does not, create 
any right or benefit, substantive or procedural, enforceable at 
law or in equity by any party against the United States, its 
departments, agencies, or entities, its officers, employees, or 
agents, or any other person.
    Sec. 9. The measures taken pursuant to this order are in 
response to actions of the Government of Iran occurring after 
the conclusion of the 1981 Algiers Accords, and are intended 
solely as a response to those later actions.
    Sec. 10. This order is effective at 12:01 a.m. eastern 
standard time on November 21, 2011.

                                                      Barack Obama.
    The White House, November 20, 2011.