New Law Imposes Sanctions on U.S. and Foreign Companies Investing in Iran and Libya

Against the opposition of the European allies, President Clinton signed into law the "Iran and Libya Sanctions Act of 1996" (the Act) on August 5, 1996. Aimed at international energy companies, the Act requires the President to impose sanctions on U.S. and foreign persons that make $40 million or more in new petroleum investments in either Iran or Libya over a 12-month period. It also mandates sanctions on U.S. and foreign persons exporting goods, services or technology to Libya in violation of United Nations Security Council resolutions. Six types of sanctions have been designated, including: denial of Export-Import Bank credits, denial of export licenses, prohibitions on loans from U.S. financial institutions, prohibition on participation in U.S. government procurement, prohibition on designation as a dealer for U.S. government debt instruments, and import restrictions.

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