Europe cautions U.S. on Iran sanctions

WASHINGTON, Aug. 3 (UPI) -- European governments are warning Congress of the impact proposed U.S. sanctions on Iran could have on other interests, the Financial Times said Friday.

Diplomats from France, Germany and the United Kingdom are lobbying Capitol Hill against legislation that would mandate sanctions on energy companies investing more than $20 million in Iran.

Among the companies already targeted by a U.S. campaign to disinvest in energy companies that trade with Iran are Royal Dutch Shell, Total of France and Repsol of Spain, the newspaper said.

Royal Dutch Shell and Repsol are both looking for oil in U.S. territorial waters in the Gulf of Mexico, but are also involved in a project worth up to $10 billion to produce Iran's first liquefied natural gas, the Times said.

The companies are expected to make a final decision about their investment in 2008.

The European ambassadors caution the U.S. campaign aimed at Iran could undermine trans-Atlantic unity on Tehran's nuclear program or provoke a dispute at the World Trade Organization.

Danielle Pletka of the conservative American Enterprise Institute agrees with the diplomats, noting "more stringent sanctions" could lead to "serious repercussions for our multilateral effort."