House Approves Bill to Put Financial Squeeze on Sudan

The House voted unanimously yesterday to allow states, localities and private investors to cut their investment ties with Sudan, the latest sanction designed to pressure the Khartoum government into ending the violence in the country's Darfur region.

[an error occurred while processing this directive]

The bill, which was passed 411 to 0, was approved by the Senate last week and now goes to President Bush for his signature. The administration has expressed concerns about authorizing state and local divestment policies in the foreign policy area, but Bush is expected to sign the bill.

The legislation would target four of Sudan's economic sectors viewed as key sources of revenue for its government: oil, power production, mining and military equipment. It would permit, but not compel, interested states and localities to adopt measures for divesting from companies involved in the four sectors. It would also allow mutual fund and private pension fund managers to cut ties with companies involved in those sectors and would provide them a safe harbor from lawsuits.

It would require federal government contractors to certify that they are not involved in any business in those sectors.