Reliance Gets US Nod to Import Venezuela Oil

Reliance Industries has received a general licence from the United States government that allows it to purchase crude oil directly from Venezuela without violating existing sanctions, according to a Reuters report.

The approval, reportedly granted under the administration of US President Donald Trump, permits the acquisition, export, sale and refining of oil that has already been produced in Venezuela.

Reliance is said to have applied for the licence in early January.

What the Licence Allows

As per the report, the general licence covers Venezuelan crude that has already been extracted. It enables Reliance to import and refine the oil, which could help diversify its sourcing strategy.

Earlier this month, President Trump removed a 25% punitive tariff on India and indicated that India may increase oil purchases from the United States and possibly Venezuela.

Separately, US authorities have signalled a potential easing of energy-related sanctions on Venezuela, which could support renewed oil trade between Caracas and global buyers.

Possible Impact on Russian Oil Imports

The move may allow Reliance to reduce dependence on Russian crude.

According to refining and trading sources cited in the report, some Indian refiners, including Reliance, are reportedly avoiding new Russian oil cargoes for April delivery. Heavy crude from Venezuela is often available at discounted rates, which could make it a cost-effective alternative.

However, there has been no official statement from Reliance confirming any specific shift away from Russian supplies.

Recent Purchases and Market Context

Earlier this month, Reliance reportedly purchased 2 million barrels of Venezuelan crude from trading firm Vitol. The report also noted that traders such as Vitol and Trafigura had received US approvals to market and sell Venezuelan oil following recent geopolitical developments.

Reliance had previously been a regular buyer of Venezuelan crude but suspended imports in early 2025 after US sanctions tightened.

With the new licence in place, shipments from Venezuela could increase, potentially lowering feedstock costs for the company.

Refining Capacity and Strategic Importance

Reliance operates two refineries in India with a combined processing capacity of approximately 1.4 million barrels per day. Its Jamnagar complex is widely regarded as the world’s largest refining hub.

Access to Venezuelan heavy crude could support the operational flexibility of these refineries, which are designed to process a wide range of crude grades.

Broader Energy Implications

The development comes at a time when global oil flows are adjusting amid shifting sanctions, trade policies and geopolitical tensions.

If implemented as reported, the US licence could mark a significant step in reshaping crude trade patterns involving India, Venezuela and Russia.

Further clarity is expected as official statements and trade data emerge in the coming weeks.