The Cable

Senate begins another Iran sanctions push, targets Ahmadinejad and Khamenei

On Thursday, the Senate Banking Committee will officially start work on a new sanctions bill against Iran, and senators are set to add even more sanctions to the bill as it goes through the legislative process -- including measures that directly target President Mahmoud Ahmadinejad and Supreme Leader Ayatollah Ali Khamenei.

The Banking Committee will mark up the Johnson-Shelby Iran Sanctions, Accountability and Human Rights Act of 2012, named after committee heads Sens. Tim Johnson (D-SD) and Richard Shelby (R-AL), who will lead Thursday's proceedings. The bill will pile on more punitive measures against Iran's energy, shipping, and mining sectors, while punishing a broader range of Iranian government officials for their involvement in human rights violations.

President Barack Obama's administration is still working to implement the last round of Iran sanctions that was signed into law, which included the Menendez-Kirk sanctions on the Central Bank of Iran that were added to the defense authorization bill in December by a 100-0 vote. But the Senate has no intention of giving the administration a breather, and Thursday's mark-up is the beginning of a new and aggressive push to tighten the noose on Tehran and further damage the Iranian economy.

"Iran's continuing defiance of its international legal obligations and refusal to come clean on its nuclear program underscore the need to further isolate Iran and its leaders," Johnson said in statement about the bill.

The bill would sanction anyone who provides Iran with equipment or technology that facilitates censorship or the suppression of human rights, including weapons, rubber bullets, tear gas, and other riot control equipment -- as well as jamming, monitoring, and surveillance equipment. It also calls on the administration to develop a more robust Internet freedom strategy for Iran and speed related assistance to pro-democracy activists in the country.

The legislation would also formally establish that U.S. policy is intended to prevent Iran from obtaining a nuclear weapon, and would require the administration to report extensively and repeatedly on its efforts to increase diplomatic and financial pressure on the Iranian regime.

Johnson and Shelby's bill expands sanctions to cover companies involved in joint ventures with Iran that aid the country's energy sector, targets any Iranian joint ventures involving uranium mining, authorizes the administration to target corporate executives of sanctioned firms, and requires U.S. companies to report to the SEC business they have with any Iranian firms that could fall under sanctions.

The Banking Committee bill is a scaled-down version of the Iran, Syria, North Korea Sanctions Consolidation Act, sponsored by Sens. Robert Menendez (D-NJ), Jon Kyl (R-AZ), Joe Lieberman (I-CT), Mark Kirk (R-IL), Kirsten Gillibrand (D-NY), Bob Casey (D-PA), and Scott Brown (R-MA). The Syria and North Korea provisions in that bill were left out of the Banking Committee's version so there wouldn't be any jurisdictional confusion between the Banking Committee and the Foreign Relations Committee.

Several senators are set to offer amendments on Thursday to strengthen the Johnson-Shelby bill even further. Although negotiations are still ongoing, a list of the amendments in the queue as of Wednesday afternoon was obtained by The Cable.

Among the amendments that could be considered in committee on Thursday is an amendment by Menendez, offered on behalf of himself and Kirk (who is in Chicago recovering from a stroke) that would impose immigration restrictions on Ahmadinejad, Khamenei, and a host of other senior Iranian government officials. The amendment would also trigger visa restrictions on Ahmadinejad and Khamenei, although those restrictions could be waived for U.N. meetings in New York.

A separate amendment by Menendez and Sen. Roger Wicker (R-MS), also offered on behalf of Kirk, would sanction banks with officers on the board of the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the organization that handles the bulk of international electronic bank transfers, if SWIFT doesn't stop processing transactions for Iranian banks.

Another Menendez amendment would require the Treasury Department to determine whether the Iranian National Oil Company and the Iranian National Tanker Company are tied to the Islamic Revolutionary Guard Corps. If they are, those two companies would then be sanctioned as well, which could wreak further havoc on Iran's economy.

"This is a reminder that there are still more stones left unturned and there are still more ways to increase the pressure on an already extraordinarily pressured Iranian economy," a senior Senate aide told The Cable. "In bipartisan fashion, the Senate is moving to do just that."

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The Cable

Levin and McCain: Egypt's military aid really is in jeopardy

Both leaders of the Senate Armed Services Committee told The Cable that $1.3 billion of annual U.S. aid to the Egyptian military is in real jeopardy due to the Egyptian government's harassment of American NGO workers.

Committee chairman Carl Levin (D-MI) and ranking Republican John McCain (R-AZ) both said on Tuesday that a withholding of military aid to Egypt was now on the table due to the Egyptian military's role in the Dec. 29 raids on several NGO groups in Cairo, including three U.S. government-funded organizations: the International Republican Institute (IRI), the National Democratic Institute (NDI), and Freedom House.

The anger in Washington at the Egyptian government reached a boiling point this week when it was revealed on Jan. 26 that U.S. Transportation Secretary Ray LaHood's son Sam LaHood, the head of IRI's Cairo office, had been barred from leaving Egypt by the government, along with five other U.S. citizens.

The issue has already led to a divorce between the Egyptian government and its Washington lobbyists. The lobbyists said they dumped the Egyptian government over the NGO issue, while the Egyptian embassy claimed it dumped the lobbyists in order to save money.

Both Levin and McCain are set to meet with a visiting delegation of high-level Egyptian military officers next week in Washington, and they both said they will deliver the message that U.S. military aid to Egypt is tied to this issue.

"They should know that this action on their part jeopardizes a normal relationship between us," Levin said in a brief interview on his way out of the Democratic caucus lunch. "They know that, and that includes the impact it could have on aid."

McCain, who happens to be the chairman of the board of IRI, said in his own after-lunch interview that U.S. military aid to Egypt is "certainly a topic that [the Egyptians] have put on the table."

"It's hard to believe. IRI and NDI worked throughout Eastern Europe after the fall of the Soviet Union and we helped them with democracy. They're like mechanics. They come in and tell you how to organize voters, how party registration works, and that kind of stuff. They're not advocates of anybody," McCain said.

McCain has been exchanging letters with his contacts in Egypt but there's been no progress yet, he said. "I've known [SCAF leader Field Marshal Mohamed Hussein] Tantawi for years, and many of the other members of the Egyptian military. It's one of the few benefits of old age," he said.

Freedom House put out a fact sheet on Tuesday, written by its manager of congressional affairs, Sarah Trister, which argues Egypt has not met the legal obligations for receiving the $1.3 billion in U.S. military aid this year.

"Per the FY 2012 State and Foreign Operations Bill, before the administration can release the $1.3 billion in military aid for Egypt, it must certify that the government of Egypt is ‘supporting the transition to civilian government including holding free and fair elections; implementing policies to protect freedom of expression, association, and religion, and due process of law.' At this point, it is clear these conditions are not being met," Trister wrote.

Moreover, the Freedom House fact sheet made the case that Egypt should not receive the $300 million it receives from the United States in economic and social assistance, mainly because this money goes through the Ministry for International Cooperation, which is led by the Egyptian official believed to be driving the NGO harassment: Fayza Abul-Naga.

"The ministry that receives this funding, the Ministry for Planning and International Cooperation, is headed by a Mubarak holdover who has been directing the assault against civil society," Trister wrote, referring to Abul-Naga.

Reuters reported Tuesday that the Egyptian Justice Ministry sent back a letter from the U.S. embassy requesting the Americans trapped in Cairo be allowed to leave.

The Washington Post ran an editorial on Tuesday criticizing the Egyptian military delegation for being tone deaf to the seriousness of the crisis, and calling on President Barack Obama's administration to use the military aid as leverage.

"The generals regard this funding as an entitlement, linked to the country's peace treaty with Israel. They appear to believe that Washington will not dare to cut them off, even if Americans seeking to promote democracy in Egypt are made the object of xenophobic slanders and threatened with imprisonment," the editorial said.

"Preserving the alliance with Egypt, and maintaining good relations with its military, is an important U.S. interest. But the Obama administration must be prepared to take an uncompromising stand. If the campaign against U.S., European and Egyptian NGOs is not ended, military aid must be suspended."

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