Is Venezuela Becoming a Prime Source for US Crude Imports Again?

Reliance Industries Receives US Approval to Import Venezuelan Oil Amid Sanctions

Reliance Industries Ltd. has received approval from the US to resume importing oil from Venezuela, despite existing White House sanctions, according to sources familiar with the situation.

India’s largest privately-owned refiner is set to start purchasing Venezuelan crude soon, say sources who requested anonymity due to the sensitive nature of the information. Previously, Reliance was responsible for approximately 90% of India’s crude imports from Venezuela after sanctions were briefly lifted last year, per data from intelligence firm Kpler.

India’s Venezuelan Oil Imports Drop to Zero Amid Reimposed US Sanctions

India’s imports from Venezuela have plummeted to zero following the reimposition of US sanctions in April. Both the US Treasury and Reliance Industries declined to comment on this development.

Last year, the US temporarily lifted restrictions on Venezuela’s gold and oil sectors when President Nicolas Maduro and the opposition agreed to ensure free and fair elections. However, these sanctions were reinstated in April after Venezuela failed to uphold the agreement. Consequently, oil companies have been seeking permits from the US Treasury Department to continue operations in Venezuela.

Surge in Venezuela’s Oil Exports Despite Sanctions

In June, Venezuela’s crude exports soared to 654,000 barrels per day, the highest since April 2020, as reported by shipping data and Kpler. This surge followed the US granting a specific license allowing companies to drill in Venezuela despite the sanctions.

Apart from Reliance, India’s state-owned Oil and Natural Gas Corp.’s overseas arm, ONGC Videsh Ltd., has also sought waivers to import Venezuelan crude.

**Disclosure:** Moneycontrol is part of the Network18 group, controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.