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US panel OKs tougher Iran sanctions

(Agencies)
Updated: 2009-10-30 06:43

WASHINGTON: An important Senate committee approved legislation Thursday that would give the Obama administration authority to impose tougher sanctions on Iran for failing to come clean about an alleged nuclear weapons program.

The Senate Banking Committee voted 23-0 to send the Comprehensive Iran Sanctions, Accountability and Divestment Act to the full Senate for consideration. The act mirrors legislation approved by a House of Representatives committee on Wednesday that would allow the United States to go after firms that sell or ship refined petroleum products to Iran or invest in the country's energy sector.

In addition, the Senate bill would make it easier for US states to dump investments in companies that do business with Iran, to freeze the assets held by certain Iranians in US jurisdictions and to punish firms that export technology to Iran that is used to clamp down on free speech.

The moves come as the administration tries to ratchet up pressure on Iran to comply with international demands that it prove its civilian nuclear energy program is not a cover for atomic weapons development. Iran denies the charge and has refused to halt uranium enrichment despite three sets of UN Security Council sanctions.

Supporters of the new legislation believe that targeting refined petroleum products, which has not been done to date, will help persuade Iranian authorities to comply.

Iran is a major exporter of crude oil but lacks sufficient refining facilities to supply its needs. The new sanctions would apply to companies that provide gasoline, kerosene, propane and other refined products to Iran. They also would apply to shipping concerns that transport the products and to the shippers' insurers.