ILSA Extension Act of 2001

ILSA Extension Act of 2001 - Amends the Iran and Libya Sanctions Act of 1996 (ILSA) to lower from $40 million to $20 million the threshold amount a foreign person's or entity's knowing investment in Libya's ability to develop its petroleum resources must reach before the President is required to impose two or more specified economic and trade sanctions (the same trigger threshold amount for investment in Iranian energy resources).

(Sec. 3) Directs the President to report to Congress on: (1) the extent to which trade actions have been effective in the International Atomic Energy Agency in establishing regular inspections of all nuclear facilities in Iran and any other foreign policy or national security objectives of the United States with respect to Iran and Libya, including the extent to which they have affected humanitarian interests in those countries, the country in which the sanctioned person is located, or in other countries; and (2) the impact of such actions on other national security, economic, and foreign policy interests of the United States, including relations with countries friendly to the United States, and on the U.S. economy. Permits the President to include in such report a recommendation on whether or not this Act should be terminated or modified.

(Sec. 4) Extends such Act for another five year period.

(Sec. 5) Mandates that any amendment or other modification made on or after June 13, 2001, to existing (pre-ILSA) agreements or contracts for the development of Libya's petroleum resources be considered new investment for purposes of the imposition of sanctions.