Senate passes bill to prevent 'Reliance-Iran type' relations

Basing it on the experience of "Reliance-Iran tie up" in the past, a key Senate Committee has approved changes in an Act that would ban the Export-Import Bank from assistance for foreign projects where a controlling sponsor is doing sanctionable business with Iran.

"This amendment will prohibit the Export Import Bank from assisting entities like India's Reliance Industries, which was selling refined petroleum to Iran," said a joint statement issued by Senators Robert Menendez and Mark Kirk.

In 2007-08, the Export Import Bank provided $900 million in loan guarantees for exports and services to Reliance, including $400 million to help finance the Jamnagar refinery, which was in turn selling refined petroleum products to Iran, the Senators said.

Senators Menendez and Kirk were instrumental in relevant amendments in the Export-Import Bank Reauthorisation Act.

As a result, the Act, among other things, will now prohibit the Bank from extending guarantees, insurance or extensions of credit to US companies or their subsidiaries that are violating US sanctions against Iran.

It will also ban export assistance for foreign projects where a controlling sponsor is doing sanctionable business with Iran.

"It is important that we use every opportunity and channel to impede Iran's relentless drive to develop nuclear weapons.

"The new Iran sanctions law passed by Congress in 2010 and the Obama Administration's efforts to multilateralism sanctions has made a difference, but Iran's mullahs (clergy) are persistent," Menendez said after the business meeting in the Senate Committee.

"Just last week, the IAEA confirmed that Iran is loading P-2 centrifuges at Qom, which will allow Iran to significantly enhance its uranium enrichment capacity. As long as Iran continues on her march toward nuclear weapons, we will continue to expand and enhance our efforts to stall and thwart her achievement," he said.

"This amendment ensures that taxpayer dollars will not help the Iranian government avoid sanctions for building nuclear weapons," said Senator Kirk.

"We should now move beyond this step to the one recommended in August by 91 Senators: collapse the Central Bank of Iran," Kirk said.