RIL cuts down US lobbying expenses to record low

Billionaire Mukesh Ambani-led Reliance Industries (RIL), which has been expanding its presence in the US, has surprisingly cut its expenses for lobbying among American law makers to a record low level.

RIL spent a total of $120,000 (about Rs 54 lakh) on lobbying in the US during the first quarter of 2011 — making it the lowest amount for a quarter ever since RIL began lobbying for its interests in American power corridors in 2009.

Through its lobbyist Barbour Griffith & Rogers LLC (BGR), RIL spent $120,000 on lobbying for its interest in the US Senate, the US House of Representatives and the US Department of State in the January-March 2011 quarter, show the latest lobbying disclosure documents filed with the Senate.

RIL lobbied for its case in domestic and foreign trade areas and BGR provided “strategic counsel on issues related to trade,” show its lobbying disclosure report for the quarter.

Prior to the latest quarter, RIL has been spending $190,000 on lobbying with the US law makers during every quarter since the first quarter of 2009.

RIL had filed its lobbying registration report with the Senate in February 2009.

So far, RIL has spent a total of $1.64 million (about Rs 7.5 crore) since it began lobbying in the US in 2009.

RIL has been expanding its US presence through shale gas asset purchases for its core energy business in recent months.

The first instance of RIL lobbying among the US law makers — in the first quarter of 2009, when it paid about Rs 1 crore to its lobbyist BGR — came at a time when it was facing possible sanctions by the Barack Obama administration for its business ties with Iran.

The first disclosure about RIL’s lobbying expenses in April 2009 came in the midst of the US Senate and the House of Representatives debating new bills to authorise Obama to put strong penalties, including a ban on doing business in the US, against companies supplying petroleum products to Iran.

RIL, along with five European companies, had been named by the US law makers for action for doing business with Iran.

Lobbying is legal in the US and all lobbyists there are required to file a quarterly report with the Senate, detailing their clients, the departments with whom they were lobbying and the fees charged.

The issue has created a big controversy in recent months after leakage of taped conversations a corporate lobbyist had with people from politics, business and media.

The controversy led to talk of the government considering regulations for lobbying activities. However, private companies have been officially lobbying in the US for many years to put forward their cases with the American government and law makers.