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. Most experts attributed the imposition of additional sanctions to Iran's stepped up efforts to acquire nuclear expertise -- it signed a contract with Russia in January 1995 for construction of a nuclear power reactor at Bushehr -- and to a 1994-1995 spate of terrorist attacks in Israel by the Islamist organizations Hamas and Palestine Islamic Jihad, both of which receive some financial and material assistance from Iran, according to annual U.S. State Department reports on international terrorism. 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 might begin to deprive Iran of the ability to acquire weapons of mass destruction (WMD) and fund terrorist groups by hindering its ability to modernize its key source of revenue -- the petroleum sector. The effect on Iran would be significant, according to this view, if U.S. allies joined the U.S. trade and investment ban. ILSA (P.L. 104-172) is due to expire on August 5, 2001, 5 years after enactment. Discussion on renewal of ILSA appears to center on the difficulties incurred in implementing it, reactions to ILSA on the part of U.S. allies, and changes in U.S. relations with Iran and Libya since its enactment. H.R. 1954 and S. 994, the ILSA Extension Act of 2001, would renew ILSA for another 5 years. This report will be updated to reflect legislative developments. See also CRS Issue Brief IB93033, "Iran: Current Developments and U.S. Policy," and CRS Issue Brief IB93109, "Libya."

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Document Details

Document Type
Technical Report
Publication Date
Jul 20, 2001
Accession Number
ADA475995

Entities

People

  • Kenneth Katzman

Organizations

  • Library of Congress

Tags

Communities of Interest

  • Counter WMD

DTIC Thesaurus Topics

  • Agreements
  • Congress
  • Contracts
  • Corporations
  • Counterterrorism
  • Department Of State
  • Economic Sanctions
  • European Union
  • Foreign Policy
  • Government Procurement
  • Governments
  • International Relations
  • Law
  • Terrorism
  • Terrorists
  • United States
  • Weapons Of Mass Destruction

Fields of Study

  • Business

Readers

  • Nuclear Non-Proliferation and International Security
  • Public Financial Management and Budgeting