India's Reliance Moves Closer to Venezuelan Oil, Allegedly Obtained Relevant U.S. License

Bloomberg News, February 14 (Editor: Ma Lan) — According to reports, the U.S. government has issued a general license to Reliance Industries, allowing it to purchase, export, and sell Venezuelan crude oil that has been extracted, including refining.

Two sources familiar with the matter said the license will permit refiners to buy Venezuelan oil directly without violating U.S. sanctions. One of the sources stated that directly purchasing Venezuelan oil will help Reliance Industries replace Russian oil more economically and efficiently, as Venezuela’s heavy crude will be sold at a discount.

Earlier this month, Reliance Group purchased 2 million barrels of Venezuelan oil from trader Vito Group. After the U.S. captured Venezuelan President Maduro, Vito Group, along with Tock Group, obtained a license issued by the U.S. to sell several million barrels of Venezuelan oil.

U.S. officials also previously indicated that the White House relaxed sanctions on Venezuela’s energy sector to facilitate a $2 billion oil supply agreement and an ambitious $100 billion plan to rebuild Venezuela’s oil industry.

Trade Negotiations and Trade-offs The license granted to Reliance Group will accelerate Venezuela’s oil exports and reduce its own crude oil costs. The company has historically been a regular buyer of Venezuelan oil but had to cease purchases by early 2025 due to U.S. sanctions.

Reliance operates two refineries with a total capacity of about 1.4 million barrels per day, making it one of the world’s largest refiners and a major buyer of Russian crude oil.

However, a senior executive from the company stated last month that starting in February, Reliance would purchase up to 150,000 barrels of Russian crude oil daily from suppliers not subject to U.S. sanctions. Previously, Reliance’s long-term agreement with Rosneft allowed daily imports of up to 500,000 barrels of Russian oil.

Reliance’s move to reduce Russian oil demand and increase Venezuelan oil imports coincides with trade negotiations between the U.S. and India. Earlier this month, U.S. President Trump lifted the 25% punitive tariff on India and indicated that India would buy more oil from the U.S. and possibly Venezuela.

Refining and Trade Sources say that Indian refineries, including Reliance, are avoiding purchasing Russian oil scheduled for delivery in April and are expected to stay away from such transactions long-term. This may help India reach a trade agreement with the U.S.