Sec. 5. IMPOSITION OF SANCTIONS
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## SEC. 5 IMPOSITION OF SANCTIONS ###
(a)Sanctions Relating to the Energy Sector of Iran ####
(1)Development of petroleum resources of iran #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012— ######
(i)makes an investment described in subparagraph
(B)of $20,000,000 or more; or ######
(ii)makes a combination of investments described in subparagraph
(B)in a 12-month period if each such investment is of at least $5,000,000 and such investments equal or exceed $20,000,000 in the aggregate. #####
(B)Investment described An investment described in this subparagraph is an investment that directly and significantly contributes to the enhancement of Iran's ability to develop petroleum resources. ####
(2)Production of refined petroleum products #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, sells, leases, or provides to Iran goods, services, technology, information, or support described in subparagraph (B)— ######
(i)any of which has a fair market value of $1,000,000 or more; or ######
(ii)that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more. #####
(B)Goods, services, technology, information, or support described Goods, services, technology, information, or support described in this subparagraph are goods, services, technology, information, or support that could directly and significantly facilitate the maintenance or expansion of Iran's domestic production of refined petroleum products, including any direct and significant assistance with respect to the construction, modernization, or repair of petroleum refineries or directly associated infrastructure, including construction of port facilities, railways, and roads, the primary use of which is to support the delivery of refined petroleum products. ####
(3)Exportation of refined petroleum products to iran #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012— ######
(i)sells or provides to Iran refined petroleum products— ######
(I)that have a fair market value of $1,000,000 or more; or ######
(II)that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more; or ######
(ii)sells, leases, or provides to Iran goods, services, technology, information, or support described in subparagraph (B)— ######
(I)any of which has a fair market value of $1,000,000 or more; or ######
(II)that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more. #####
(B)Goods, services, technology, information, or support described Goods, services, technology, information, or support described in this subparagraph are goods, services, technology, information, or support that could directly and significantly contribute to the enhancement of Iran's ability to import refined petroleum products, including— ######
(i)except as provided in subparagraph (C), underwriting or entering into a contract to provide insurance or reinsurance for the sale, lease, or provision of such goods, services, technology, information, or support; ######
(ii)financing or brokering such sale, lease, or provision; ######
(iii)providing ships or shipping services to deliver refined petroleum products to Iran; ######
(iv)bartering or contracting by which goods are exchanged for goods, including the insurance or reinsurance of such exchanges; or ######
(v)purchasing, subscribing to, or facilitating the issuance of sovereign debt of the Government of Iran, including governmental bonds, issued on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012. #####
(C)Exception for underwriters and insurance providers exercising due diligence The President may not impose sanctions under this paragraph with respect to a person that provides underwriting services or insurance or reinsurance if the President determines that the person has exercised due diligence in establishing and enforcing official policies, procedures, and controls to ensure that the person does not underwrite or enter into a contract to provide insurance or reinsurance for the sale, lease, or provision of goods, services, technology, information, or support described in subparagraph (B). ####
(4)Joint ventures with iran relating to developing petroleum resources #####
(A)In general Except as provided in subparagraph
(B)or subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly participates, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, in a joint venture with respect to the development of petroleum resources outside of Iran if— ######
(i)the joint venture is established on or after January 1, 2002; and ######
(ii)######
(I)the Government of Iran is a substantial partner or investor in the joint venture; or ######
(II)Iran could, through a direct operational role in the joint venture or by other means, receive technological knowledge or equipment not previously available to Iran that could directly and significantly contribute to the enhancement of Iran's ability to develop petroleum resources in Iran. #####
(B)Applicability Subparagraph
(A)shall not apply with respect to participation in a joint venture established on or after January 1, 2002, and before the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, if the person participating in the joint venture terminates that participation not later than the date that is 180 days after such date of enactment. ####
(5)Support for the development of petroleum resources and refined petroleum products in iran #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, sells, leases, or provides to Iran goods, services, technology, or support described in subparagraph (B)— ######
(i)any of which has a fair market value of $1,000,000 or more; or ######
(ii)that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more. #####
(B)Goods, services, technology, or support described Goods, services, technology, or support described in this subparagraph are goods, services, technology, or support that could directly and significantly contribute to the maintenance or enhancement of Iran's— ######
(i)ability to develop petroleum resources located in Iran; or ######
(ii)domestic production of refined petroleum products, including any direct and significant assistance with respect to the construction, modernization, or repair of petroleum refineries or directly associated infrastructure, including construction of port facilities, railways, and roads, the primary use of which is to support the delivery of refined petroleum products. ####
(6)Development and purchase of petrochemical products from iran #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, sells, leases, or provides to Iran goods, services, technology, or support described in subparagraph (B)— ######
(i)any of which has a fair market value of $250,000 or more; or ######
(ii)that, during a 12-month period, have an aggregate fair market value of $1,000,000 or more. #####
(B)Goods, services, technology, or support described Goods, services, technology, or support described in this subparagraph are goods, services, technology, or support that could directly and significantly contribute to the maintenance or expansion of Iran's domestic production of petrochemical products. ####
(7)Transportation of crude oil from iran #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that— ######
(i)the person is a controlling beneficial owner of, or otherwise owns, operates, or controls, or insures, a vessel that, on or after the date that is 90 days after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, was used to transport crude oil from Iran to another country; and ######
(ii)######
(I)in the case of a person that is a controlling beneficial owner of the vessel, the person had actual knowledge the vessel was so used; or ######
(II)in the case of a person that otherwise owns, operates, or controls, or insures, the vessel, the person knew or should have known the vessel was so used. #####
(B)Applicability of sanctions ######
(i)In general Except as provided in clause (ii), subparagraph
(A)shall apply with respect to the transportation of crude oil from Iran only if a determination of the President under section 1245(d)(4)(B) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(4)(B)) that there is a sufficient supply of petroleum and petroleum products produced in countries other than Iran to permit purchasers of petroleum and petroleum products from Iran to reduce significantly their purchases from Iran is in effect at the time of the transportation of the crude oil. ######
(ii)Exception for certain countries Subparagraph
(A)shall not apply with respect to the transportation of crude oil from Iran to a country to which the exception under paragraph (4)(D) of section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)) to the imposition of sanctions under paragraph
(1)of that section applies at the time of the transportation of the crude oil. ####
(8)Concealing iranian origin of crude oil and refined petroleum products #####
(A)In general Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person is a controlling beneficial owner, or otherwise owns, operates, or controls, a vessel that, on or after the date that is 90 days after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, is used, with actual knowledge in the case of a person that is a controlling beneficial owner or knowingly in the case of a person that otherwise owns, operates, or controls the vessel, in a manner that conceals the Iranian origin of crude oil or refined petroleum products transported on the vessel, including by— ######
(i)permitting the operator of the vessel to suspend the operation of the vessel's satellite tracking device; or ######
(ii)obscuring or concealing the ownership, operation, or control of the vessel by— ######
(I)the Government of Iran; ######
(II)the National Iranian Tanker Company or the Islamic Republic of Iran Shipping Lines; or ######
(III)any other entity determined by the President to be owned or controlled by the Government of Iran or an entity specified in subclause (II). #####
(B)Additional sanction Subject to such regulations as the President may prescribe and in addition to the sanctions imposed under subparagraph (A), the President may prohibit a vessel owned, operated, or controlled by a person, including a controlling beneficial owner, with respect to which the President has imposed sanctions under that subparagraph and that was used for the activity for which the President imposed those sanctions from landing at a port in the United States for a period of not more than 2 years after the date on which the President imposed those sanctions. #####
(C)Vessels identified by the office of foreign assets control For purposes of subparagraph (A)(ii), a person shall be deemed to have actual knowledge that a vessel is owned, operated, or controlled by the Government of Iran or an entity specified in subclause
(II)or
(III)of subparagraph (A)(ii) if the International Maritime Organization vessel registration identification for the vessel is— ######
(i)included on a list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury for activities with respect to Iran; and ######
(ii)identified by the Office of Foreign Assets Control as a vessel in which the Government of Iran or any entity specified in subclause
(II)or
(III)of subparagraph (A)(ii) has an interest. #####
(D)Definition of iranian origin For purposes of subparagraph (A), the term “**Iranian origin**” means— ######
(i)with respect to crude oil, that the crude oil was extracted in Iran; and ######
(ii)with respect to a refined petroleum product, that the refined petroleum product was produced or refined in Iran. ####
(9)Exception for provision of underwriting services and insurance and reinsurance The President may not impose sanctions under paragraph
(7)or
(8)with respect to a person that provides underwriting services or insurance or reinsurance if the President determines that the person has exercised due diligence in establishing and enforcing official policies, procedures, and controls to ensure that the person does not provide underwriting services or insurance or reinsurance for the transportation of crude oil or refined petroleum products from Iran in a manner for which sanctions may be imposed under either such paragraph. ###
(b)Mandatory Sanctions With Respect to Development of Weapons of Mass Destruction or Other Military Capabilities ####
(1)Exports, transfers, and transshipments Except as provided in subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person— #####
(A)on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, exported or transferred, or permitted or otherwise facilitated the transshipment of, any goods, services, technology, or other items to any other person; and #####
(B)knew or should have known that— ######
(i)the export, transfer, or transshipment of the goods, services, technology, or other items would likely result in another person exporting, transferring, transshipping, or otherwise providing the goods, services, technology, or other items to Iran; and ######
(ii)the export, transfer, transshipment, or other provision of the goods, services, technology, or other items to Iran would contribute materially to the ability of Iran to— ######
(I)acquire or develop chemical, biological, or nuclear weapons or related technologies; or ######
(II)acquire or develop destabilizing numbers and types of advanced conventional weapons. ####
(2)Joint ventures relating to the mining, production, or transportation of uranium #####
(A)In general Except as provided in subparagraph
(B)or subsection (f), the President shall impose 5 or more of the sanctions described in section 6(a) with respect to a person if the President determines that the person knowingly participated, on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012, in a joint venture that involves any activity relating to the mining, production, or transportation of uranium— ######
(i)######
(I)established on or after February 2, 2012; and ######
(II)with— ######
(aa)the Government of Iran; ######
(bb)an entity incorporated in Iran or subject to the jurisdiction of the Government of Iran; or ######
(cc)a person acting on behalf of or at the direction of, or owned or controlled by, the Government of Iran or an entity described in item (bb); or ######
(ii)######
(I)established before February 2, 2012; ######
(II)with the Government of Iran, an entity described in item
(bb)of clause (i)(II), or a person described in item
(cc)of that clause; and ######
(III)through which— ######
(aa)uranium is transferred directly to Iran or indirectly to Iran through a third country; ######
(bb)the Government of Iran receives significant revenue; or ######
(cc)Iran could, through a direct operational role or by other means, receive technological knowledge or equipment not previously available to Iran that could contribute materially to the ability of Iran to develop nuclear weapons or related technologies. #####
(B)Applicability of sanctions Subparagraph
(A)shall not apply with respect to participation in a joint venture established before the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012 if the person participating in the joint venture terminates that participation not later than the date that is 180 days after such date of enactment. ####
(3)Additional mandatory sanctions relating to transfer of nuclear technology #####
(A)In general Except as provided in subparagraphs
(B)and (C), in any case in which a person is subject to sanctions under paragraph
(1)or
(2)because of an activity described in that paragraph that relates to the acquisition or development of nuclear weapons or related technology or of missiles or advanced conventional weapons that are designed or modified to deliver a nuclear weapon, no license may be issued for the export, and no approval may be given for the transfer or retransfer, directly or indirectly, to the country the government of which has primary jurisdiction over the person, of any nuclear material, facilities, components, or other goods, services, or technology that are or would be subject to an agreement for cooperation between the United States and that government. #####
(B)Exception The sanctions described in subparagraph
(A)shall not apply with respect to a country the government of which has primary jurisdiction over a person that engages in an activity described in that subparagraph if the President determines and notifies the appropriate congressional committees that the government of the country— ######
(i)does not know or have reason to know about the activity; or ######
(ii)has taken, or is taking, all reasonable steps necessary to prevent a recurrence of the activity and to penalize the person for the activity. #####
(C)Individual approval Notwithstanding subparagraph (A), the President may, on a case-by-case basis, approve the issuance of a license for the export, or approve the transfer or retransfer, of any nuclear material, facilities, components, or other goods, services, or technology that are or would be subject to an agreement for cooperation, to a person in a country to which subparagraph
(A)applies (other than a person that is subject to the sanctions under paragraph
(1)or (2)) if the President— ######
(i)determines that such approval is vital to the national security interests of the United States; and ######
(ii)not later than 15 days before issuing such license or approving such transfer or retransfer, submits to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate the justification for approving such license, transfer, or retransfer. #####
(D)Construction The restrictions in subparagraph
(A)shall apply in addition to all other applicable procedures, requirements, and restrictions contained in the Atomic Energy Act of 1954 and other related laws. #####
(E)Definition In this paragraph, the term “**agreement for cooperation**” has the meaning given that term in section 11 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(b)). #####
(F)Applicability The sanctions under subparagraph
(A)shall apply only in a case in which a person is subject to sanctions under paragraph
(1)or
(2)because of an activity described in paragraph
(1)or (2), as the case may be in which the person engages on or after the date of the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012. ###
(c)Persons Against Which the Sanctions Are To Be Imposed The sanctions described in subsection
(a)and paragraphs
(1)and
(2)of subsection
(b)shall be imposed on— ####
(1)any person the President determines has carried out the activities described in subsection
(a)or paragraph
(1)or
(2)of subsection (b); and ####
(2)any person that— #####
(A)is a successor entity to the person referred to in paragraph (1); #####
(B)owns or controls the person referred to in paragraph (1), if the person that owns or controls the person referred to in paragraph
(1)had actual knowledge or should have known that the person referred to in paragraph
(1)engaged in the activities referred to in that paragraph; or #####
(C)is owned or controlled by, or under common ownership or control with, the person referred to in paragraph (1), if the person owned or controlled by, or under common ownership or control with (as the case may be), the person referred to in paragraph
(1)knowingly engaged in the activities referred to in that paragraph. For purposes of this Act, any person or entity described in this subsection shall be referred to as a “sanctioned person”. ###
(d)Publication in Federal Register The President shall cause to be published in the Federal Register a current list of persons and entities on whom sanctions have been imposed under this Act. The removal of persons or entities from, and the addition of persons and entities to, the list, shall also be so published. ### (e)1 Publication of Projects The President shall cause to be published in the Federal Register a list of all significant projects which have been publicly tendered in the oil and gas sector in Iran. 1The Department of State published such a list in Public Notice No. 2501, January 2, 1997 (62 F.R. 1141). ###
(f)Exceptions The President shall not be required to apply or maintain the sanctions under subsection
(a)or paragraph
(1)or
(2)of subsection (b)— ####
(1)in the case of procurement of defense articles or defense services— #####
(A)under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy requirements essential to the national security of the United States; #####
(B)if the President determines in writing that the person to which the sanctions would otherwise be applied is a sole source supplier of the defense articles or services, that the defense articles or services are essential, and that alternative sources are not readily or reasonably available; or #####
(C)if the President determines in writing that such articles or services are essential to the national security under defense coproduction agreements; ####
(2)in the case of procurement, to eligible products, as defined in section 308(4) of the Trade Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign country or instrumentality designated under section 301(b) of that Act (19 U.S.C. 2511(b)); ####
(3)to products, technology, or services provided under contracts entered into before the date on which the President publishes in the Federal Register the name of the person on whom the sanctions are to be imposed; ####
(4)to— #####
(A)spare parts which are essential to United States products or production; #####
(B)component parts, but not finished products, essential to United States products or production; or #####
(C)routine servicing and maintenance of products, to the extent that alternative sources are not readily or reasonably available; ####
(5)to information and technology essential to United States products or production; or ####
(6)to medicines, medical supplies, or other humanitarian items.
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