Reliance Gets U.S. Licence To Buy Venezuelan Oil Directly

India’s Reliance Industries has received a general licence from the United States that permits the company to directly purchase Venezuelan-origin crude oil without breaching U.S. sanctions, according to sources cited by Reuters on February 13.

The licence, issued by the U.S. government, authorises the purchase, export, sale and refining of Venezuelan oil that has already been extracted. This allows Reliance to source crude directly from Venezuela rather than through intermediaries that previously held specific permissions.

Sanctions Easing After Political Developments

The decision follows recent developments in Venezuela, after which U.S. officials announced a partial easing of sanctions on the country’s energy sector. According to Reuters, Washington indicated that sanctions relief would support a proposed $2 billion oil supply arrangement and a longer-term $100 billion plan aimed at rebuilding Venezuela’s oil industry.

The U.S. Office of Foreign Assets Control, which administers sanctions programmes, did not respond to requests for comment outside normal business hours. Reliance also did not respond to an emailed request for comment, Reuters reported.

Impact On Reliance’s Crude Sourcing

Reliance had applied for the licence in early January, according to the report. The company operates two refineries in India with a combined capacity of about 1.4 million barrels per day, making it one of the world’s largest refining operators.

Earlier this month, Reliance purchased about 2 million barrels of Venezuelan crude through trader Vitol. Vitol and Trafigura were among firms previously granted U.S. licences to market Venezuelan oil. With the new general licence, Reliance can now import Venezuelan crude directly, which is expected to lower procurement costs as Venezuelan heavy crude typically trades at a discount.

Shift Away From Russian Oil

Direct access to Venezuelan oil is also expected to help Reliance replace Russian crude supplies. According to refining and trade sources cited by Reuters, Indian refiners, including Reliance, are avoiding fresh Russian oil purchases for April delivery and are likely to remain cautious in the coming months.

Reliance had been a regular buyer of Venezuelan oil for its advanced refining complex before suspending purchases in early 2025 due to U.S. sanctions. The new licence allows the company to resume these imports after the pause.

Trade And Tariff Context

The move comes amid broader trade discussions between India and the United States. Earlier this month, Donald Trump removed a 25% punitive tariff on India and said New Delhi would increase oil purchases from the U.S. and potentially from Venezuela.

Reuters says that India's renewed access to Venezuelan crude fits with its plans to buy oil from a wider range of sources while dealing with changing trade and sanctions rules with the US.