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Context of 'March 15, 1995: US Imposes Oil, Trade Sanctions on Iran'

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US President Bill Clinton issues Executive Order 12957 imposing strict oil and trade sanctions on Iran. US companies and their foreign subsidiaries are hence prohibited from entering into any contract “for the financing of the development of petroleum resources located in Iran.” [US President, 3/15/1995; BBC, 3/17/2000; US Department of Energy, 8/2004]

Timeline Tags: US confrontation with Iran

US President Bill Clinton issues Executive Order 12959 prohibiting US businesses from engaging in virtually all trade with Iran except for information and informational materials. Corporate criminal penalties for violations of the Iranian Transactions Regulations range up to $500,000, with individual penalties of up to $250,000 and 10 years in jail. [US Department of the Treasury. Office of Foreign Assets Control, 11/1979; US President, 5/6/1995]

Entity Tags: William Jefferson (“Bill”) Clinton

Timeline Tags: US confrontation with Iran

CNN reports that despite US government prohibitions (see March 15, 1995 and May 6, 1995) banning US citizens and business from doing business with Iran, dozens of US companies are actively conducting business there, including Halliburton, ConocoPhillips and General Electric. The companies are using a complicated array of corporate loop-holes and off-shore accounts to maneuver around US laws. Michael Ledeen, interviewed by CNN, says these companies are aiding terrorism. “The oil companies are a wholly owned subsidiary of the government… the government is the primary sponsor of terrorism,” he says, additionally claiming that “they have separate organizations that are used to funnel oil profits and other profits into the terror network.” [CNN, 2/10/2003; CNN, 5/29/2003]

Entity Tags: ConocoPhillips, Halliburton, Inc., Michael Ledeen, General Electric

Timeline Tags: US confrontation with Iran

General Electric does about $270 million in business in Iran through one of its foreign subsidiaries. The company has sold Iran hydroelectric equipment, medical equipment, and oil and gas equipment. Under current US law, companies are barred from doing business with nations that the US State Department has said are sponsors of terrorism. However the law does not prohibit a company’s foreign subsidiaries from engaging in such business. [Associated Press, 2/2/2005]

Entity Tags: General Electric, US Department of State

Timeline Tags: US confrontation with Iran

General Electric (GE) follows Halliburton and ConocoPhillips, announcing that the company will no longer accept business from Iran (see May 29, 2003). “Because of uncertain conditions related to Iran, including concerns about meeting future customer commitments, we will not accept any new orders for business in Iran effective Feb. 1,” explains Gary Sheffer, a GE spokesman. “This moratorium on new orders will be re-evaluated as conditions relating to Iran change.” [Associated Press, 2/2/2005; Forbes, 2/2/2005] Under current US law, companies are barred from doing business with nations that the US State Department has said are sponsors of terrorism. However the law does not prohibit a company’s foreign subsidiaries from engaging in such business. [BBC, 7/20/2004; Associated Press, 2/2/2005]

Entity Tags: US Department of State, Halliburton, Inc., General Electric, ConocoPhillips, Gary Sheffer

Timeline Tags: US confrontation with Iran

Iranian President Mahmoud Ahmadinejad orders that his country’s foreign exchange reserves be moved from the dollar to the euro, setting the stage for the Iranian Central Bank to cut its foreign currency reserve interests rates from 12 percent to 5 percent. The estimated rate cut makes it cheaper for the bank to acquire foreign currency. “They have been talking about switching their foreign currency reserve from the dollar to the euro for a while now, but it makes them more dependent on the euro and the European Union,” says Dr. Ali Ansari, director of Scotland’s St. Andrews University Iranian Studies Centre.
Followed Call Addressed to OPEC - Ahmadinejad’s decision comes shortly after he called for the Organization of Petroleum Exporting Countries (OPEC) to discard the dollar as the currency standard for oil-related deals. Despite recent declines in dollar value and the fact that most major oil producing countries are outside the US, the dollar remains the prevailing currency for pricing a barrel of oil. The dollar also remains the most frequently used international trade currency.
Possible Motivation - Some analysts believe that exchanging the dollar for the euro may be Iran’s attempt to lessen the effects of US economic sanctions in force since the 1979 Islamic revolution when the US backed the overthrown Shah of Iran, who was replaced by an Islamic republic. US sanctions include prohibiting US involvement with Iran’s petroleum development, as well as prohibiting all trade and investment activities by US citizens around the globe. Sanctions were softened somewhat in 2000, when the US Treasury amended its prohibition edict by allowing US citizens to buy and import carpets and food products like dried fruits, nuts, and caviar produced in Iran. Recent media reports suggest, however, that President Obama is considering an increase in sanctions if Iran persists in its alleged development of nuclear weapons. Iran maintains that its nuclear program is solely for power production. [Media Line, 9/22/2009]

Entity Tags: Iran, Organization of Petroleum Exporting Countries, Mahmoud Ahmadinejad, Ali Ansari

Timeline Tags: Global Economic Crises

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