Authorizing Sanctions on Iran's Energy and Petrochemical Sectors
Nov 23, 2011
Signed by: Barack Obama
Signed on: Nov 20, 2011
Published on: Nov 23, 2011
Nov 23, 2011
Signed by: Barack Obama
Signed on: Nov 20, 2011
Published on: Nov 23, 2011
Summary
Allows the U.S. government to punish people or companies that help Iran's oil, gas, and chemical industries.
What problem does this solve?
The U.S. considers Iran's actions a threat to national security. This order puts economic pressure on Iran by punishing foreign companies that help its important energy industries.
What does this order do?
Authorizes sanctions for helping Iran's energy sector
Allows the Secretary of State to punish any person or company that knowingly sells or provides significant goods, services, or technology to Iran's petroleum or petrochemical industries.
Sets specific money limits for violations
Defines 'significant' help as transactions worth over $1 million for petroleum development or $250,000 for petrochemical production within a year.
Freezes property and blocks financial deals
Allows the Secretary of the Treasury to freeze all property of a sanctioned person in the U.S. and block them from making financial transactions through U.S. banks.
Blocks financial support and exports
Stops sanctioned persons from getting U.S. government-backed loans or insurance for exports. It also denies them licenses to receive U.S. goods or technology.
Bans U.S. government business
Prevents any U.S. government agency from buying goods or services from a sanctioned person.
Prohibits avoiding the sanctions
Makes it illegal for any U.S. person to try to get around these rules or help others violate them.
Who does this affect?
- Companies in the global energy and petrochemical industries
- The Government of Iran
- U.S. financial institutions
What is the real world impact?
•
Pressures Iran's economy
Aims to weaken Iran's key industries, like oil and gas, to encourage the country to change its policies. This is a tool to achieve foreign policy goals without military action.
•
Discourages international business with Iran
Warns companies around the world that they could face serious U.S. penalties if they do business with Iran's energy sector. This could make it harder for Iran to find international partners.
When does this start?
This order went into effect at 12:01 a.m. EST on November 21, 2011.