Ex-Im has approved two separate loan guarantees worth $900 million, including a $400 million package in August, 2008. Reliance has been a major supplier of refined petroleum products for Iran; according to some reports, Reliance has at times provided as much as 30 percent of Iran’s need for imported petroleum. Ex-Im’s assistance was approved to help finance the expansion of Reliance’s refining complex at Jamnagar, the very facility that provides Iran with gasoline.
“I very much support the Export-Import Bank’s mission of supporting U.S. exports. However, we must ensure that when we provide assistance, the corporate recipients are not doing business with our enemies,” said Congressman Brad Sherman.
“Iran is an energy rich country, but Tehran lacks the refining capacity to provide itself enough gasoline,” Sherman said. “Iran imports about 40 percent of its gasoline. We could greatly increase our leverage against Tehran in the dispute over its nuclear program by encouraging those supplying them with gasoline to halt their trade with Iran.”
“We cannot miss opportunities like this one, where we can greatly increase our leverage over a major trading partner with Iran,” Sherman added.
Sherman’s letter follows another letter sent by Senators Lieberman and Kyl in early November. The Lieberman-Kyl letter raised similar concerns about Ex-Im projects. Ex-Im’s response to that letter failed to address the critical shortcomings in the approval process for these loans.
Sherman and his House colleagues are calling on Ex-Im to conduct a more robust investigation of the companies it assists, and to do a better job coordinating with the State Department and other foreign policy agencies to ensure that the assistance provided is in accord with our vital national security concerns.
