The bill sanctions foreign companies that provide new investments over $40 million for the development of petroleum resources in Iran or Libya.

The bill also sanctions foreign companies that violate existing U.N. prohibitions against trade with Libya in certain goods and services such as arms, certain oil equipment, and civil aviation services.

Following is official text of Fact Sheet from the White House:

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FACT SHEET: THE IRAN AND LIBYA SANCTIONS ACT OF 1996

President Clinton has led the fight against terrorism and will continue to take measures to further pressure and punish states that support it.

Purpose: The Iran and Libya Sanctions Act of 1996 imposes new sanctions on foreign companies that engage in specified economic transactions with Iran or Libya. It is intended to:

• Help deny Iran and Libya revenues that could be used to finance international terrorism;
• Limit the flow of resources necessary to obtain weapons of mass destruction; and,
• Put pressure on Libya to comply with U.N. resolutions that, among other things, call for Libya to extradite for trial the accused perpetrators of the Pan Am 103 bombing. The Sanctions: The bill sanctions foreign companies that provide new investments over $40 million for the development of petroleum resources in Iran or Libya. The bill also sanctions foreign companies that violate existing U.N. prohibitions against trade with Libya in certain goods and services such as arms, certain oil equipment, and civil aviation services. If a violation occurs, President Clinton is to impose two out of seven possible sanctions against the violating company. These sanctions include:
• denial of Export-Import Bank assistance;
• denial of export licenses for exports to the violating company;
• prohibition on loans or credits from U.S. financial institutions of over $10 million in any 12-month period;
• prohibition on designation as a primary dealer for U.S. government debt instruments;
• prohibition on serving as an agent of the United States or as a repository for U.S. government funds;
• denial of U.S. government procurement opportunities (consistent with WTO obligations); and
• a ban on all or some imports of the violating company.

This Bill is Another Step in U.S. Efforts to Enforce Compliance:

• prohibition on serving as an agent of the United States or as a repository for U.S. government funds;
• denial of U.S. government procurement opportunities (consistent with WTO obligations); and
• a ban on all or some imports of the violating company.

This Bill is Another Step in U.S. Efforts to Enforce Compliance from Iran and Libya:

• In 1984, Iran was placed on the list of states that support international terrorism, triggering statutory sanctions that prohibit weapons sales, oppose all loans to Iran from international financial institutions, and prohibit all assistance to Iran.
• In 1987, the U.S. further prohibited the importation of any goods or services from Iran and U.S. naval and air forces struck Iranian naval units on several occasions in response to Iranian efforts to disrupt the flow of oil from the Persian Gulf with naval mines and missile attacks.
• In 1995, President Clinton imposed comprehensive sanctions on Iran, prohibiting all commercial and financial transactions with Iran.
• In January 1986, the United States imposed comprehensive sanctions against Libya that froze Libyan assets, and banned all trade and financial dealings with Libya. Two months later, U.S. Air Force and Navy jets bombed Libyan targets in retaliation for Libyan terrorist attacks on Americans in Europe.
• In March 1992, the U.S. supported the imposition of sanction against Libya which prohibited the export of petroleum, military or aviation equipment to Libya; prohibited commercial flights to or from Libya; limited Libyan diplomatic representation abroad; and restricted Libyan financial activities.
• In addition, the United States has worked with our allies to further isolate Libya both internationally and within the Middle East and to develop new methods to pressure Qadhafi to comply with the U.N. Security Council Resolutions directed at Libya.

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