Mukesh Ambani-led Reliance Industries gets US nod to import oil from Venezuela: Report

Reliance Industries has obtained approval from the United States to resume oil imports from Venezuela, despite existing sanctions. The development was confirmed by a source familiar with the situation on Wednesday, Bloomberg reported.

While the US Treasury Department declined to comment on this matter, Reliance has yet to respond to a request for comment. Bloomberg was the first to report this news.

Prior to the initial imposition of US oil sanctions on Venezuela in 2019, Reliance was the second-largest buyer of Venezuelan crude oil, following China's CNPC.

In May, Reliance re-submitted a request to the US for authorisation to import crude oil from Venezuela. This came after the US Treasury had denied licenses to Indian refiners, including Reliance, following a brief easing of sanctions in October.

Despite the re-imposed sanctions in June, Indian refiners had continued purchasing Venezuelan oil through intermediaries.

Additionally, India's Oil and Natural Gas Corp has sought a waiver from the US Office of Foreign Assets Control to lift crude oil from Venezuela, according to an industry source.

Sanctions on Venezuela

On April 18, 2024, the Biden administration announced that it would not renew a license that had partially eased sanctions on Venezuela since October. This license had been part of a US-backed election agreement between the Venezuelan government and the opposition in Barbados.

"Venezuela's President Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement," stated US Department of State spokesperson Matthew Miller. Consequently, General License 44, which permitted transactions related to the oil and gas sector with Venezuela, was set to expire at midnight and would not be renewed.

As the deadline approached, the US Treasury Department issued a new license, allowing companies 45 days to wind down their operations and transactions in Venezuela's oil and gas sector.

(With Inputs from agencies)