[Congressional Record (Bound Edition), Volume 158 (2012), Part 6]
[Senate]
[Page 7515]
[From the U.S. Government Publishing Office, www.gpo.gov]




                                 ISHRA

  Mr. JOHNSON of South Dakota. Madam President, earlier today the 
Senate passed by Unanimous Consent S. 2101, the Iran Sanctions, 
Accountability, and Human Rights Acts of 2012 (ISHRA). The bill 
significantly increases pressure on Iran's leaders and I thank my 
colleagues for their support of this important measure. As we begin 
negotiations with our counterparts in the House, I want to expand on my 
comments from my earlier statement. I do so in order to provide my 
colleagues some clarification regarding a few provisions in the bill.
  First, section 201 of the Iran Sanctions, Accountability, and Human 
Rights Acts of 2012 will impose sanctions, for the first time, against 
entities involved in joint ventures to develop petroleum resources 
outside of Iran that are established on or after January 1, 2002. Those 
joint ventures which qualify are joint ventures which involve the 
Government of Iran as a substantial partner or investor, or through 
which Iran could receive technological knowledge or equipment not 
previously available to it that could contribute to its ability to 
develop domestic petroleum resources. Further, even if ancillary 
agreements to implement an existing pre-2002 joint venture are agreed 
to on or after January 1, 2002, sanctions are not authorized to be 
imposed against any third-party to that joint venture or against 
persons who provide goods, services, technology or information to such 
a joint venture, as a result of their participation in or dealings with 
such venture, by virtue of such ancillary agreements.
  In addition, this legislation seeks to continue the long-standing 
tradition of ensuring that humanitarian trade, including agricultural 
commodities, food, medicine and medical products is specifically 
exempted by Congress from sanctions, on the condition that such trade 
be licensed by the Department of the Treasury's Office of Foreign 
Assets Control, or OFAC. It is becoming more apparent that U.S. 
financial sanctions targeting Iran's banking sector are causing 
increased concern among businesses and banks of our allies. The fear is 
that engaging in humanitarian trade in the current sanctions 
environment might lead to sanctions for legitimately licensed 
humanitarian trade.
  However, it is not and has not been the intent of U.S. policy to harm 
the Iranian people by prohibiting humanitarian trade that is licensed 
by the U.S. Treasury Department. OFAC consistently issues many 
licenses, both general and specific, for this type of trade. The 
practical financing difficulties arising today between banks and those 
engaging in licensed humanitarian trade can be best addressed by U.S. 
Government officials, who should do more to make it clear that no U.S. 
sanctions will be imposed against third-country banks that facilitate 
OFAC-licensed or exempted humanitarian trade. The Administration must 
make that clear in public statements, in private meetings with foreign 
financial institutions, and elsewhere as appropriate.
  Misinterpretation of U.S. law by foreign financial institutions 
should no longer deny the people of Iran the benefit of OFAC-approved 
humanitarian trade.
  I want to close by again thanking my colleagues for their support of 
ISHRA. I think this action sends an important message to the Iranians 
and the world that the U.S. will continue to increase sanctions until 
Iran verifiably abandons its illicit nuclear program. As we begin our 
work with the House, I will continue to press for the strongest and 
most effective sanctions legislation possible.
  I yield the floor.

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