Mack: Iran evades U.S. Sanctions With the Help of Venezuela – Calls on the Obama Administration to Act Immediately
23 February 2011
Congressional Documents and Publications
Office of Rep. Connie Mack (R-FL) News Release
WASHINGTON – Congressman Connie Mack (FL-14), Chairman of the Western Hemisphere Subcommittee, responds to public reports displaying documents signed by the Venezuela state-owned oil corporation Petroleos de Venezuela, S.A. (PDVSA) and National Iranian Oil Company authorizing two cargo shipments of gasoline from Venezuela to Iran. This activity is in direct violation of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).
Mack said: “I have repeatedly said that Venezuela is violating U.S. sanctions on Iran- now, you don’t have to take it from me. Hugo Chavez and PDVSA are actively helping Iran bypass both U.S. and international sanctions in its pursuit of nuclear weapons. These sanctions were carefully crafted as a nuclear determent strategy to protect U.S. interests and allies. If it were important to the Administration, it would act immediately.”
As Chairman of the House Foreign Affairs Western Hemisphere Subcommittee, Mack sent the below letter to State and Treasury department officials, with no response to date:
February 7, 2011
The Honorable William J. Burns
Under Secretary for Political Affairs
U.S. Department of State
2201 C Street, N.W.
Washington, DC 20520
The Honorable Stuart A. Levey
Under Secretary for Terrorism and Financial Intelligence
U.S. Department of Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Dear Secretary Burns and Secretary Levey:
Thank you for taking the time to answer questions before the Committee on Foreign Affairs during the hearing of December 1, 2010. I am still awaiting your answers on two of my questions and ask that you provide information regarding increasing Venezuelan activity in violation of U.S. sanctions on Iran.
I am deeply troubled by reports that Venezuela has and will continue to send shipments of gasoline to Iran in blatant violation of the Comprehensive Iran Sanctions Accountability and Disinvestment Act of 2010 (CISADA). What steps is the Department of Treasury taking to designate Venezuela and the state owned oil corporation Petroleos de Venezuela SA (PDVSA) in violation of the Act?
As I mentioned at the hearing, I am concerned about an alleged use of the China National Petroleum Corporation and the Emirates National Oil Company by Venezuela to send additional shipments of gasoline to Iran. What information do you have regarding this alleged shipment and its possible violation of CISADA?
Additionally, I requested information on the status of the joint Venezuelan-Iranian International Development Bank and its alleged connection to Iranian military entities and nuclear ambitions. What information do you have about this bank and its possible violation of CISADA?
As discussed at the hearing, I am calling for a joint State Department/Treasury Department taskforce to investigate illegal activity pursued by Venezuelan officials and Venezuelan owned PDVSA’s involvement in Iran’s energy sector. PDVSA recently signed a 780-million-dollar gas field development agreement and has now formally announced a partnership with Petropars, an officially sanctioned company controlled by the government of Iran. It has also been linked to a number of corrupt activities and energy related financial transactions between Iran and Venezuela. A thorough investigation is required to determine the degree to which the actions of PDVSA violate CISADA and establish immediate sanctions.
The State Department and Treasury Department must work together to fully investigate and respond to the activities of PDVSA and recent agreements and declarations made concerning the relationship between Iran and Venezuela. As stated in Section 7 of the Iran Sanctions Act of 1996, the Secretary of State may issue an advisory opinion explaining whether an action is in violation of sanctions. The Treasury Department, as part of its mission statement, is charged with the implementation of economic sanctions against foreign threats and the identification and targeting of financial support networks of national security threats. The lack of information regarding Venezuela’s relationship with Iran is unacceptable and a joint investigative taskforce needs to be formed immediately.
I look forward to your response and to working with you to resolve this important matter.