Reliance Industries, India’s largest private refiner, has navigated the complexities of U.S. sanctions on Venezuela by obtaining a special license from American authorities to purchase crude oil from the South American nation.
Despite the reinstatement of sanctions by the Biden Administration on Venezuelan oil exports, Reliance Industries, along with ONGC Videsh, the overseas arm of India’s state-owned Oil and Natural Gas Corporation (ONGC), pursued licenses to sustain their imports of Venezuelan crude. These efforts come following the expiration of a six-month sanctions relief period that facilitated Venezuelan oil transactions from October 18 to April 18, during which Reliance Industries dominated Indian imports with a substantial 90% share, according to data from intelligence firm Kpler cited by Bloomberg.
Reliance Industries, historically a significant buyer of Venezuelan crude prior to U.S. sanctions imposed in 2019 on Nicolas Maduro’s regime, acted swiftly last year by securing tanker bookings to transport Venezuelan oil to India immediately after the temporary sanctions relief was announced in October 2023. This relief, effective until April 2024, allowed for the production, sale, and exportation of Venezuelan oil, alongside related transactions and services, in response to commitments made by President Maduro to ensure credible elections in Venezuela this year.
However, with the U.S. citing insufficient progress on electoral transparency in Venezuela, the sanctions were reinstated, prompting a 45-day wind-down period. The Treasury’s Office of Foreign Assets Control (OFAC) subsequently announced it would evaluate requests for specific licenses on a case-by-case basis to extend permissible activities beyond the wind-down period, as detailed by the State Department in April.
Reliance Industries’ successful acquisition of a U.S. license underscores its strategic maneuvering amidst evolving geopolitical dynamics, ensuring continued access to Venezuelan crude amid stringent international sanctions.
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