Reliance Secures US License for Venezuelan Oil Imports

Reliance Industries Limited, which operates the largest single-site oil refining complex in the world located in Jamnagar, Gujarat, has received a general license from the United States government to import oil from Venezuela. This development, confirmed by multiple sources, allows the Indian company to procure Venezuelan crude oil while adhering to U.S. regulations.

The license enables Reliance to join a growing list of global refiners looking to purchase Venezuelan oil. This comes in the wake of the U.S. modifying sanctions against Venezuela’s oil industry, particularly after the U.S. government's recent actions regarding Venezuelan President Nicolás Maduro, which have facilitated the resumption of oil supplies from a country that holds the world's largest proven oil reserves.

Previously, the U.S. restricted sales of Venezuelan oil to traders, but the newly issued license permits direct purchases from entities that either extract the oil or currently possess it. Before the imposition of sanctions against Maduro's government in 2019 and 2020, Reliance was an active buyer of Venezuelan oil. The company had resumed purchasing crude from Venezuela when the U.S. temporarily relaxed these sanctions in 2024.

In a related context, U.S. President Donald Trump recently addressed Prime Minister Narendra Modi's commitment to curtail imports of Russian oil in favour of increased purchases from the U.S., which may also include Venezuelan supplies. This shift follows a significant trade agreement between the two nations that led to the U.S. abolishing a 25% tariff previously imposed on Indian goods associated with the importation of Russian oil.

As Reliance Industries looks to enhance its crude oil sourcing strategy, the development signifies a broader trend of easing restrictions on Venezuelan oil exports, potentially altering the global oil market dynamics.