US grants Reliance approval for Venezuelan crude purchases

The United States has issued a general licence to India’s Reliance Industries Ltd that will allow the refiner to buy Venezuelan oil directly without violating sanctions, two sources familiar with the matter told Reuters.

Following the U.S. capture of Venezuelan president Nicolas Maduro earlier this month, U.S. officials said Washington would ease sanctions imposed on Venezuela’s energy industry to facilitate a $2 billion oil supply deal between Caracas and Washington and an ambitious $100 billion reconstruction plan for the country’s oil industry.

A general licence authorises the purchase, exportation, and sale of Venezuelan-origin oil that has already been extracted, including the refining of such oil.

Handing a licence to Reliance could speed up Venezuela’s oil exports and reduce crude costs for the operator of the world’s biggest refining complex.

Reliance, which applied for the licence in early January, did not respond to an email request for comment. The US Office of Foreign Assets Control did not immediately respond outside of regular business hours.

Venezuelan oil to replace Russian supply

Earlier this month, Reliance bought 2 million barrels of Venezuelan oil from trader Vitol, which was granted, along with Trafigura, US licences to market and sell millions of barrels of Venezuelan oil after Maduro’s capture.

Direct purchase of Venezuelan oil will help Reliance replace Russian oil in a cost-effective way, as heavy crude from Caracas is sold at a discount, said one of the sources to Reuters.

President Donald Trump earlier this month removed a 25% punitive tariff on India and said New Delhi would buy more oil from the US and potentially Venezuela.

Indian refiners, including Reliance, are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington.

The conglomerate used to be a regular buyer of Venezuelan oil for its advanced refining complex but had to stop purchases in early 2025 due to US sanctions. Reliance operates two refineries with a combined capacity of about 1.4 million barrels per day.

(With inputs from Reuters)