22 U.S.C. § 8783: Applicability to certain…

Summary

Allows activities for a specific natural gas project to be ignored under this Act if the project is to develop Azerbaijani gas and build and run a pipeline to Turkey and Europe, if it gives Turkey and European countries energy security and independence from the Russian government and other governments that can control people targeted by these sanctions, and if the project began before August 10, 2012 under a production-sharing deal, a related agreement needed for that deal, or a license from a government other than Iran dated before August 10, 2012. The exemption stops when the President tells the right congressional committees that either the share of ownership by certain Iran-related entities has risen since January 1, 2002, or one of those Iran-related entities has taken an operational role. The Iran-related entities mean: (A) entities owned or controlled by Iran’s government or set up under Iranian law or with its approval, (B) entities owned or controlled by those entities, and (C) successor entities to those entities.

Title 22, §8783

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Exception for certain natural gas projects

Nothing in this Act or the amendments made by this Act shall apply to any activity relating to a project—

(1)for the development of natural gas and the construction and operation of a pipeline to transport natural gas from Azerbaijan to Turkey and Europe;

(2)that provides to Turkey and countries in Europe energy security and energy independence from the Government of the Russian Federation and other governments with jurisdiction over persons subject to sanctions imposed under this Act or amendments made by this Act; and

(3)that was initiated before August 10, 2012, pursuant to a production-sharing agreement, or an ancillary agreement necessary to further a production-sharing agreement, entered into with, or a license granted by, the government of a country other than Iran before August 10, 2012.

(b)Termination of exception

(1)In general

The exception under subsection (a) shall not apply with respect to a project described in that subsection on or after the date on which the President certifies to the appropriate congressional committees that—

(A)the percentage of the equity interest in the project held by or on behalf of an entity described in paragraph (2) has increased relative to the percentage of the equity interest in the project held by or on behalf of such an entity on January 1, 2002; or

(B)an entity described in paragraph (2) has assumed an operational role in the project.

(2)Entity described

An entity described in this paragraph is—

(A)an entity—

(i)owned or controlled by the Government of Iran or identified under section 560.304 of title 31, Code of Federal Regulations (relating to the definition of the Government of Iran); or

(ii)organized under the laws of Iran or with the participation or approval of the Government of Iran;

(B)an entity owned or controlled by an entity described in subparagraph (A); or

(C)a successor entity to an entity described in subparagraph (A).

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (a), is Pub. L. 112–158, Aug. 10, 2012, 126 Stat. 1214, known as the Iran Threat Reduction and Syria Human Rights Act of 2012, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 8701 of this title and Tables.

§8783 Applicability to Certain Natural Gas Projects