France, Malaysia reject U.S. step

France, Malaysia reject U.S. step

KUALA LUMPUR (Reuters): France agrees with Malaysia that the United States has no right to impose sanctions on foreign companies that invest in Iran's oil and gas industry, a visiting French minister was quoted as saying yesterday.

The official Bernama news agency quoted French Foreign Trade Minister Jacques Dondoux as saying that Paris opposed the Iran and Libya Sanctions Act of 1996.

The U.S. law provides for sanctions on companies which invest more than $20 million in the oil and gas sectors of Iran or Libya, accused by Washington of sponsoring terrorism.

Washington is considering sanctions against state oil company Petroliam Nasional Bhd (Petronas), France's Total SA and Russia's Gazprom for a planned $2 billion joint natural gas venture in Iran. Malaysia has said Washington is trying to apply domestic law beyond its borders.