Congress wants say in lifting of Iran sanctions

OREANDA-NEWS. A key Republican in the US House of Representatives told US administration officials today Congress "will have a say" in whether Washington's sanctions on Iran get rolled back.

House Foreign Affairs Committee chairman Ed Royce (R-California) said any relaxation of US sanctions targeting Iran must be accompanied by a "substantial" rollback of Iran's nuclear program. And restrictions on Iran must be kept in place "for decades."

Congress "built the sanctions structure that brought Iran to the table," Royce told State and Treasury officials during a committee hearing today. "And if the president moves to dismantle it, we will have a say."

Royce, the committee's top Democrat Eliot Engel (D-New York), and about 350 other members of Congress later sent a letter to President Barack Obama, saying that any permanent relief from congressionally mandated sanctions will require new legislation. "Congress must be convinced that its terms foreclose any pathway to a bomb, and only then will Congress be able to consider permanent sanctions relief," the lawmakers wrote.

The US and its negotiating partners the UK, France, Germany, Russia and China are trying to reach a political agreement with Iran by the end of the month, with final details worked out by June. Lawmakers have insisted the political framework be completed by 24 March or they intend to move ahead with additional sanctions measures.

Deputy secretary of state Antony Blinken told Royce's committee that if the negotiations are successful the US and other members of the international community will provide Iran phased and proportionate sanctions relief, which could be reversed if Iran were to violate its commitments.

Treasury acting under secretary for Terrorism and Financial Intelligence Adam Szubin told Royce's committee today the administration wants Congress' legislative sanctions suspended, rather than terminated, initially, so the US will continue to have leverage for years.

"Put simply, Iran will not receive comprehensive relief from nuclear-related sanctions absent proof that it has concretely and verifiably carried out what is expected of it as part of a comprehensive deal," Szubin said.

Blinken made clear the administration has no plans to seek congressional approval of nuclear agreement. But the White House would need Congress to lift permanently any congressionally imposed sanctions.

Since the imposition of sanctions, Iran's oil exports have fallen from about 2.5mn b/d in 2012 to about 1.1mn b/d, not including condensate. Szubin said that loss of oil exports cost Iran \$40bn in 2014. And since 2012, Iran has been denied access to more than \$200bn in oil revenue. Iranian President Hassan Rohani's budget for the 2015-16 fiscal year assumes an oil price of \$72/bl, Szubin said.

"The size of the hole that Iran is in across almost any indicator you look at is far deeper than the relief that is on the table," Szubin said.