The Iran-Libya Sanctions Act (ILSA)
Abstract
The Iran-Libya Sanctions Act (ILSA) was conceived in the context of a tightening of U.S. sanctions on Iran during the first term of the Clinton Administration. Sanctions were added as a response to Iran's stepped up efforts to acquire nuclear expertise and its reputed support to terrorist organizations, including Hizbollah, Hamas, and Palestine Islamic Jihad (PIJ). In 1995, President Clinton issued two executive orders, including Executive Order 12957 (March 15, 1995), which banned U.S. investment in Iran's energy sector, and Executive Order 12959 (May 6, 1995), which banned U.S. trade with and investment in that country. The Clinton Administration and many in Congress maintained that the new U.S. sanctions would deprive Iran of the ability to acquire weapons of mass destruction (WMD) and fund terrorist groups by hindering its ability to modernize its key petroleum sector, which generates revenues that account for about 10% of Iran's GDP. Iran's onshore oil fields, as well as its oil industry infrastructure, are old and needed substantial investment, and its large natural gas resources (believed to be the second largest in the world, after Russia) were not developed at all at the time ILSA was first considered. In August 2001, ILSA (P.L. 104-172) was renewed for another 5 years. No firms have been sanctioned under ILSA, and ILSA has terminated with respect to Libya. In the 109th Congress, H.R. 282 and S. 333 contain provisions that would modify ILSA. This report will be updated to reflect legislative developments. See also CRS Report RL32048, "Iran: U.S. Concerns and Policy Responses," and CRS Issue Brief IB93109, "Libya."
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 19, 2005
- Accession Number
- ADA475663
Entities
People
- Kenneth Katzman
Organizations
- Library of Congress