Reliance Secures Approval from USA to Resume Oil Trade with Venezuela

Reliance Industries has secured US approval to resume importing oil from Venezuela despite White House sanctions on the country, according to people familiar with the development. India's largest privately owned refiner plans to start purchasing Venezuelan crude soon, with Reliance having accounted for around 90% of India's crude imports from Venezuela after sanctions were lifted last year, based on data from Kpler, a data intelligence firm.

The US Treasury and Reliance Industries have not publicly commented on this development. Washington temporarily removed restrictions on Venezuela's gold and oil sectors last year to support a deal for free and fair elections signed by President Nicolas Maduro and the opposition. However, sanctions were reinstated in April after Venezuela failed to honor the agreement. Since then, oil companies have been applying for permits from the US Treasury Department to continue their operations in Venezuela.

Venezuela's crude exports increased to 654,000 barrels a day in June, the highest since April 2020, following a specific license granted by the US for continued drilling despite the sanctions. Besides Reliance, India's state-owned Oil and Natural Gas Corp.'s overseas investment arm, ONGC Videsh Ltd., has also applied for waivers to import crude from Venezuela.