Cutting off Iran’s gasoline

Reps. Mark Kirk (R-Ill.) and Brad Sherman (D-Calif.) are planning to introduce legislation on Tuesday that would help to cut off gasoline imports to Iran.

The amendment to the 2010 State-Foreign Operations appropriations bill would prohibit taxpayer dollars from going to guarantee, insure or extend credit to any company that supplies gasonline to Iran. The congressmen noted that the U.S. Export-Import Bank, in both 2007 and 2008, approved two separate loan guarantee totaling $900 million to expand a refinery owned by Reliance Industries Limited. an Indian company that provides about a third of Iran’s daily imports of gasoline.

Iran, while a leading exporter of oil, lacks enough refining capacity to meet its internal fuel demand and imports as much as 40 percent of its gasoline.

Broader legislation which would sanction companies that help Iran refine petroleum or providing refined gasoline to the country was introduced in the House and Senate this spring, and is backed by AIPAC.

Such sanctions are even being endorsed by demonstrators in Iran. From an CNN interview with a protester named Mohammad on Monday:

Mohammad: Excuse me, sir. I have a message for the international community. Would you please let me tell it?

Roberts: Yes, go ahead.

Mohammad: Americans, European Union, international community, this government is not definitely — is definitely not elected by the majority of Iranians. So it’s illegal. Do not recognize it. Stop trading with them. Impose much more sanctions against them. My message…to the international community, especially I’m addressing President Obama directly – how can a government that doesn’t recognize its people’s rights and represses them brutally and mercilessly have nuclear activities? This government is a huge threat to global peace. Will a wise man give a sharp dagger to an insane person? We need your help international community. Don’t leave us alone.

Chetry: Mohammad, what do you think the international community should do besides sanctions?

Mohammad: Actually, this regime is really dependent on importing gasoline. More than 85% of Iran’s gasoline is imported from foreign countries. I think international communities must sanction exporting gasoline to Iran and that might shut down the government.

After the jump, the Dear Colleague letter asking for House support for the legislation:[[READMORE]]

Dear Colleague:

After the murders of 14 demonstrators and students, and the arrest of thousands more, the people of Iran are struggling for their rights.

Earlier today, the House of Representatives overwhelmingly passed a resolution condemning the violence against the Iranian people by the Government of Iran.

We know that Iran’s greatest weakness remains its economic dependence on foreign gasoline. That is why many of you are cosponsors of Chairman Howard Berman’s bill, H.R. 2194, the Iran Refined Petroleum Sanctions Act of 2009.

We can all agree that the U.S. taxpayer should not be asked to help increase the supply of the gasoline to Iran – especially now.

Surprisingly, that is exactly what our taxpayer dollars are doing.

In 2007 and 2008, the U.S. Export-Import Bank approved two separate loan guarantees totaling $900 million to expand the largest refinery owned by Reliance Industries Limited – an Indian company that provides roughly 1/3 of Iran’s daily import of gasoline. In effect, the U.S. taxpayer is underwriting increased supplies of gasoline to Iran.

Therefore, we are offering a common-sense bipartisan amendment to the State-Foreign Operations Appropriations Act to prohibit the further use of taxpayer dollars to guarantee, insure or extend credit to any company that supplies gasoline to Iran.

For more information or to co-sponsor this amendment ……

Sincerely,

Mark Steven Kirk                   Brad Sherman

Member of Congress           Member of Congress.