Reliance Industries Seeks US Approval for Venezuelan Oil Purchases

Reliance Industries, India’s leading oil refiner, is pursuing authorization from the United States to resume purchases of Venezuelan crude oil. This development comes as the company seeks alternative markets, prompted by increasing pressure from Washington to reduce its reliance on Russian oil amid ongoing sanctions related to the Ukraine conflict.

In recent months, the US government has intensified its scrutiny of India’s oil trade with Russia, with President Donald Trump implementing tariffs of up to 50% on Indian goods. These measures aim to influence New Delhi’s energy partnerships and push it towards compliance with international sanctions against Russia.

Reliance Industries is currently in discussions with both the US State and Treasury Departments to acquire the necessary approvals for Venezuelan oil purchases. According to industry sources cited by Reuters, the private refiner expressed willingness to consider buying Venezuelan crude, contingent on the fuel being permitted for sale to buyers outside the US market. A spokesperson for the company stated, “We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner.”

Venezuelan state oil company PDVSA has previously engaged in trade with Reliance, supplying the firm with approximately 63,000 barrels per day in the first quarter of 2025. This marked a significant commitment by Reliance to diversify its oil sources in light of the changing geopolitical landscape.

Historically, Reliance has received US authorization to purchase Venezuelan crude oil despite the existing sanctions. However, the situation has evolved since March 2025 when the US gradually suspended these licenses as part of its campaign against the government of Venezuelan President Nicolás Maduro. The recent escalation included military actions, as US forces reportedly bombed Venezuela and took Maduro into custody on charges of narco-trafficking conspiracy, which he has publicly denied. Maduro claims that the US is primarily interested in Venezuela’s substantial oil reserves.

The US government’s stance has further solidified with President Trump demanding “total access” to Venezuelan crude. Following discussions between US officials and the Venezuelan government, Treasury Secretary Scott Bessent hinted that some sanctions on Venezuelan oil exports could be lifted in the near future, potentially opening the door for Reliance and other international buyers.

As Reliance Industries navigates these complex diplomatic waters, the outcome of its negotiations with the US could significantly reshape its oil procurement strategy and influence the broader market dynamics in the global oil sector.