Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. lawmakers have 'grave concern' over Boeing, Airbus Iran licenses

Published 09/23/2016, 11:27 AM
Updated 09/23/2016, 11:30 AM
© Reuters. The logo of Dow Jones Industrial Average stock market index listed company Boeing (BA) is seen in Los Angeles

By Patricia Zengerle

WASHINGTON (Reuters) - Senior Republican U.S. House of Representatives lawmakers made clear on Friday they will keep campaigning against Boeing and Airbus jetliner sales to Iran, despite the Treasury Department's announcement that it had begun issuing licenses for the exports.

Republican Representatives Pete Roskam and Jeb Hensarling wrote to Treasury's Office of Foreign Assets Control, which oversees sanctions, demanding more answers about any security implications of the delivery of aircraft to Iran.

"There is little evidence indicating that Iran Air has indeed stopped transporting weapons, troops, and cash to terrorist groups and rogue regimes," the congressmen wrote in a letter, dated Thursday, seen by Reuters.

Both congressmen hold influential financial positions in the House. Hensarling is chairman of the House Financial Services Committee. Roskam is chairman of the tax-writing Ways & Means Committee's Oversight subcommittee.

Airbus (PA:AIR) and Boeing (N:BA) said on Wednesday they had received U.S. Treasury approval to begin exporting over 200 jets to Iran, under a deal struck in January. The news is likely to ease complaints from Iran over implementation of last year's international nuclear agreement, in which Tehran agreed to curtail its nuclear program in exchange for sanctions relief.

Some members of Congress have raised concerns that killing the deal could cost jobs at Boeing plants, but opponents of the deal argue that security concerns are more important.

The letter to Adam Szubin, acting under secretary for Terrorism and Financial Intelligence, asked for answers to several detailed questions on issues including Iran Air's leadership, the Treasury's ability to control transfers of aircraft or parts once they are in Iran's hands and the nuclear pact.

Foreign banks have been reluctant to finance the aircraft deals, fearing they could fall foul of remaining sanctions prohibiting the use of the U.S. financial system for Iranian business.

With U.S. Republican presidential candidate Donald Trump strongly critical of the rapprochement, some banks fear they could be left with no insurance if Iran sanctions "snap back."

Republican members of Congress unanimously opposed the nuclear agreement, seen as one of Democratic President Barack Obama's foreign policy achievements.

Arguing that Obama was more concerned with enhancing his legacy than national security, they have pushed legislation and other measures seeking to overturn or undermine the agreement.

© Reuters. The logo of Dow Jones Industrial Average stock market index listed company Boeing (BA) is seen in Los Angeles

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.