The US granted Reliance a licence to directly purchase Venezuelan oil after easing sanctions
The United States has issued a general licence to India's Reliance Industries Ltd, allowing the oil refiner to purchase Venezuelan oil directly without violating sanctions. This was reported to Reuters by two sources familiar with the matter.
According to them, after the capture of Venezuelan President Nicolas Maduro this month, US officials said that Washington would ease sanctions on Venezuela's energy sector. The goal, as noted, is to facilitate a $2 billion oil deal between Caracas and Washington, as well as a broader $100 billion plan to rebuild Venezuela's oil industry.
The general licence allows for the purchase, export and sale of Venezuelan-origin oil that has already been extracted, as well as its processing. Granting such a licence to Reliance could accelerate Venezuela's exports and reduce the cost of raw materials for the operator of the world's largest oil refinery.
Reliance applied for the licence in early January, but did not respond to a request from Reuters. The US Treasury's Office of Foreign Assets Control also did not provide any comments outside of business hours.
The article states that direct purchases of Venezuelan oil will help Reliance partially replace Russian volumes. Heavy oil from Caracas is sold at a discount, making it more attractive in terms of price, one of the sources noted.
Earlier this month, Reliance purchased 2 million barrels of Venezuelan oil through trader Vitol. Reuters specifies that Vitol, like Trafigura, received US licences to market and sell millions of barrels of Venezuelan oil after Maduro's seizure.
It is also reported that US President Donald Trump this month lifted a 25 per cent penalty tariff on India and said that New Delhi would buy more oil from the US and potentially from Venezuela. At the same time, Indian refiners, including Reliance, are avoiding purchases of Russian oil with delivery in April and, according to Reuters industry sources, may refrain from such deals for longer. This, it is noted, could help India in its trade agreement negotiations with Washington.
Before the restrictions were imposed, Reliance was a regular buyer of Venezuelan oil for its modern complex, but stopped purchases in early 2025 due to US sanctions. The company operates two refineries with a combined capacity of about 1.4 million barrels per day.
