Terror-hit Reliance faces US lawmakers' wrath over Iran ties

20 December 2008

It's double whammy for Reliance Industries Limited. While the terrorist attack on Mumbai has come as a big blow for its oil exploration and production activities, eight American lawmakers have banded together to demand that the US Export-Import Bank (US Ex-Im) stop all financial assistance to RIL until it agrees to stop selling gasoline to Iran.

The report comes after RIL informed the directorate general of hydrocarbons (DGH) that its oil exploration and production (E&P) programme is under strain with foreign contractors declaring force majeure due to travel advisories from their respective countries.

The US Ex-Im has provided RIL with two loan guarantees worth $900 million, including a $400 million loan from J P Morgan, from US Ex-Im for funding its expansion programmes.

In a letter written to Ex-Im president James Lambright, the Congressmen belonging to both the Republican and Democratic parties, said the loans to RIL, which is a major supplier of gasoline to Iran, is detrimental to US national security interests and against its Iran policy.

News agency reports said the letter has been signed by chairman of the House Committee of Foreign Relations Brad Sherman and other Congressmen like Mark Steven Kirk, Howard L. Berman, Edward R. Royce, Steve Israel, Steven R. Rothman, Ron Klein and Gary Ackerman.

US senators Joe Lieberman and Jon Kyl had earlier, in November, raised similar issues about Ex-Im's connections with RIL.