Source: Reuters (via feed)
India’s Reliance Industries Ltd has been granted a general licence by the United States to purchase Venezuelan oil directly, two sources familiar with the matter said. This move allows Reliance to continue oil trade with Venezuela without breaching U.S. sanctions. The licence comes amid ongoing restrictions imposed by the U.S. on Venezuelan petroleum exports.
Previously, companies faced challenges in sourcing Venezuelan oil because of sanctions targeting the country’s state-owned oil company. However, the new licence provides a legal pathway for Reliance, one of India’s largest refiners, to import Venezuelan crude.
This development marks a significant shift in the enforcement of sanctions related to Venezuela. Meanwhile, Reliance has expanded its oil and refining operations in recent years. The company has not publicly commented on the licence as of now. The U.S. has historically used such sanctions to limit revenue streams for the Venezuelan government.
This licence may affect global oil trade dynamics due to the volume of shipments Reliance processes. It also highlights the strategic importance of oil supplies for India’s energy needs.
The licence enables Reliance to legally import Venezuelan oil amid U.S. sanctions, influencing India’s energy procurement and international oil markets.
