The United States has issued a general license to Reliance Industries Ltd allowing the company to directly purchase oil from Venezuela without breaching existing sanctions, according to sources familiar with the decision. The move marks a significant adjustment in Washington’s energy and foreign policy as it seeks to reshape global supply chains.
The policy change follows the recent capture of Venezuelan President Nicolas Maduro, after which U.S. officials indicated they would ease restrictions on Venezuela’s oil sector. The easing is intended to facilitate a $2 billion oil supply arrangement alongside an ambitious $100 billion reconstruction plan aimed at reviving the country’s long-struggling petroleum industry.
Under the general license, companies are authorized to purchase, export, sell, and refine Venezuelan-origin crude that has already been extracted. Granting such approval to Reliance could rapidly boost Venezuela’s export volumes while lowering feedstock costs for the Indian firm, which operates the world’s largest refining complex and is optimized to process heavy crude grades.
Reliance had applied for the license earlier this year and has already begun re-engaging with Venezuelan supply channels, including a purchase of 2 million barrels through global trading firms Vitol and Trafigura, both of which also received U.S. authorization to handle Venezuelan oil.
The renewed access to Venezuelan crude is expected to help India diversify its sourcing strategy and replace shipments previously obtained from Russia. Venezuelan heavy oil is typically sold at a discount, making it economically attractive for complex refineries designed to handle such grades.
The shift comes amid broader trade and diplomatic recalibrations under Donald Trump, who recently removed a punitive tariff on India and signaled that New Delhi could expand purchases of both American and Venezuelan energy. Indian refiners are reportedly avoiding new Russian oil deals in the near term, a move analysts say could smooth negotiations on a wider trade pact with Washington.
Reliance had historically been a steady buyer of Venezuelan crude before sanctions forced it to halt imports in early 2025. With two refineries capable of processing roughly 1.4 million barrels per day, the company now stands poised to play a central role in reconnecting Venezuelan supply to global markets as geopolitical alliances and energy economics continue to evolve.
