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Slideshow U.S. must stop countries reflagging Iran ships: lawmakers Tweet Share this Email Print Related News Oil price inflates as speculators bet on stimulus 8:29am EDT Strait of Hormuz open after tanker, U.S. navy ship collide Sun, Aug 12 2012 UPDATE 2-Tanzania confirms it reflagged 36 Iranian ships, to deregister them Sat, Aug 11 2012 Exclusive: U.S. regulators irate at NY action against Standard Chartered Fri, Aug 10 2012 Standard Chartered begins fightback on Iran allegations Wed, Aug 8 2012 Analysis & Opinion How many U-turns can a bank fit inside a loophole? Blame Standard Chartered in-house lawyers in money-laundering mess Related Topics World » By Ayesha Rascoe WASHINGTON | Tue Aug 14, 2012 4:41pm EDT WASHINGTON (Reuters) - Lawmakers on Tuesday urged the U.S. government to take action against Tuvalu and Tanzania, countries accused of flouting U.S. sanctions by putting their flags on Iranian tankers. Reflagging ships masks their ownership, which could make it easier for Iran to obtain insurance and financing for the cargoes, as well as find buyers for the shipments without attracting attention from the United States and European Union. Howard Berman, the top Democrat on the House Foreign Affairs Committee, said the South Pacific island nation of Tuvalu has helped Iran by "reflagging" 22 Iranian oil tankers, despite warnings that it could face U.S. sanctions. "I recommend that you ... take aggressive action to change Tuvalu's policy of abetting Iran in evading U.S. sanctions," Berman said in a letter to Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner. Berman said a U.S. bill signed into law this month authorized sanctions against anyone who re-registers Iranian oil tankers. He did not specify what action should be taken, but noted that the law authorizes penalties. The United States has a longstanding ban on imports of Iranian oil and has imposed new economic sanctions that have curbed Iranian oil imports by most other major nations. The European Union banned Iranian oil imports as well as providing insurance for vessels carrying Iranian oil on July 1, part of international efforts to pressure Tehran to end a nuclear program the West believes is aimed at producing atomic bombs. While Berman focused on Tuvalu, in a separate letter Senators Robert Menendez and Mark Kirk called for sanctions against both Tuvalu and Tanzania for reflagging ships. "The actions of the Tanzanian and Tuvaluan ship registries directly undermine the international community's ongoing diplomatic efforts to prevent Iran from obtaining nuclear and ballistic missile technology, and appear to be in violation of the legislation you just signed into law," Menendez and Kirk said in a letter to U.S. President Barack Obama. The Tanzanian government said this week it was in the process of de-registering 36 Iranian oil tankers that had been reflagged under the Tanzanian flag without the country's knowledge and approval. Berman warned the Tuvalu government against reflagging ships last month. In response to the letter, Tuvalu confirmed it had registered National Iranian Tanker Company vessels, but said it would monitor the vessels and take "appropriate action" against any Tuvalu flagged vessel that violated U.N. sanctions. Earlier this summer, Berman also called for Tanzania to stop reflagging Iranian ships. Ship registries provide income to the countries. Tuvalu said in its response to Berman's initial letter that its ship registry is an "essential part" of its income. (Additional reporting by Rachelle Younglai, Editing by David Brunnstrom and Cynthia Osterman) World Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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