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