The Conservative Reform Network Blog

Sen Fumo Divestment from Iran’s Energy Sector – Call to Action

This is an extremely important bill. Iran is a real threat and it is questionable whether it can be dispelled from obtaining a nuclear capability by negotiation or even divestment, yet, it is incumbent on us all to try whatever peaceful pressure can be applied. It is encouraging that Penna. State Sen. Fumo has taken the lead on this issue. Please support his effort.

To: Government Affairs CommitteeFrom: Jacqueline Shulman, Chair Re: Divestment from Iran’s Energy Sector – Call to Action Date: January 28, 2008As you may be aware, HB 1140, which would require Pennsylvania and the state pension boards to divest from Sudan, is currently in the Senate Finance Committee. Recognizing that divestment from the energy sector in Iran is also of importance to both the interests of America and Israel, Senator Fumo is preparing to introduce a bill that would require the state pension boards and the state Treasury to divest from direct holdings of companies with $20 million or more of investments in Iran’s energy sector. The bill also calls for constructive engagement with these companies before they divest. In Pennsylvania, that list is limited to 19 companies.As the leading state sponsor of terrorism, there is no country other than Iran that presents a more direct threat against America, our interests and our allies. Iran is developing nuclear weapons capabilities; they already have missiles that can reach Europe and are designing ones capable of reaching America. By divesting from direct holdings in Iran’s energy sector – companies that are already liable to sanction under US law – there would be a significant impact on Iran’s ability to develop its nuclear weapons program. Senator Fumo is circulating a “dear colleague” letter to all Senators asking them to co-sponsor this legislation. It is extremely important that this bill have bi-partisan support, with as many cosponsors as possible. Please call your Senator today and ask him/her to please cosponsor this important legislation. The following are some talking points:1. Iranposes a threat to the United States and the international community.2. Divesting from direct holdings in Iran’s energy sector would have a significant impact on Iran’s ability to develop its nuclear weapons program.3. Divesting from these holdings is sound fiduciary policy as any company that has invested more than $20 million in Iran’s petroleum sector is liable to sanctions.4. The bill is limited in scope which minimizes the impact on the public fund. There are only 19 companies potentially affected, all of which are foreign, and all of which have numerous alternative and equally profitable foreign oil companies for reinvestment.If you have any questions, please contact Robin Schatz, Director of Government Affairs, at 215-832-0654, or email her at rschatz@philafederation.org.