Reliance Industries Pursues US Approval for Venezuelan Oil Purchases

Reliance Industries, India’s largest oil refiner, is seeking approval from the United States to resume purchasing crude oil from Venezuela. This move comes as the company navigates challenges arising from sanctions on Russian oil, prompting the need to explore alternative sources. According to industry sources cited by Reuters, negotiations with the US State and Treasury departments are currently underway.

The pressure on India to reduce its reliance on Russian oil has intensified in recent months, particularly following the escalation of the conflict in Ukraine. In August, US President Donald Trump imposed a significant tariff increase on Indian goods, raising rates to 50% due to ongoing oil trade with Russia. This has compelled Reliance to reassess its purchasing strategies and seek new markets.

In its discussions with US authorities, Reliance Industries is focusing on the possibility of acquiring Venezuelan crude, contingent on the oil being available for sale to buyers outside the US. A spokesperson for Reliance stated, “We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner.” This cautious approach indicates the company’s intent to adhere to international regulations while exploring new opportunities.

Reliance previously received four shipments from Venezuela’s state-owned oil company, PDVSA, in the first quarter of 2025, amounting to approximately 63,000 barrels per day. Historically, the company had been authorized by Washington to purchase Venezuelan crude, even amidst ongoing US sanctions. However, these licenses were gradually suspended starting in March as part of a broader strategy to exert pressure on Venezuelan President Nicolas Maduro.

The situation escalated recently, with reports indicating that US forces bombed Venezuela and took Maduro into custody, citing charges of narco-trafficking conspiracy, which he has denied. Maduro has consistently accused the US of seeking to control Venezuela’s vast oil resources, which include some of the largest reserves in the world.

In light of recent developments, President Trump has called for “total access” to Venezuelan oil. Following discussions between US officials and representatives from Caracas, Treasury Secretary Scott Bessent announced that some US sanctions on Venezuelan oil exports might be lifted in the near future.

As Reliance Industries continues its negotiations, the potential for renewed access to Venezuelan oil could provide a crucial alternative supply for the Indian refiner, allowing it to mitigate the impact of sanctions on Russian oil imports and stabilize its operations in an increasingly complex global market.