India’s Reliance Industries Ltd has secured a general licence from the United States that allows the company to buy oil directly from Venezuela without breaking U.S. sanctions, according to people familiar with the matter.

The licence comes after recent political developments in Venezuela, including the capture of President Nicolás Maduro earlier this month. U.S. officials said that Washington plans to ease sanctions on Venezuela’s energy industry as part of efforts to support a $2 billion oil supply deal between Caracas and the United States, as well as an ambitious $100 billion plan to rebuild Venezuela’s oil sector.

Under the new licence, Reliance can purchase, export, refine, and sell Venezuelan-origin oil that has already been extracted. This change could increase Venezuela’s oil exports and help reduce crude costs for Reliance, which operates the world’s largest refining complex.

Two sources said the U.S. Office of Foreign Assets Control had not responded to requests for comment outside regular business hours, and Reliance did not reply to an email seeking comment on the licence.

Earlier this month, Reliance bought 2 million barrels of Venezuelan crude oil from the trading house Vitol. Vitol, along with Trafigura, was granted U.S. licences to market and sell millions of barrels of Venezuelan oil after Maduro’s capture. The ability to directly buy Venezuelan crude will help Reliance replace more expensive Russian oil with discounted heavy crude from Caracas, one of the sources said.

According to the sources, Venezuelan heavy oil is typically sold at a discount to other grades of crude, making it a cost-effective option for Reliance’s refining operations.

Earlier this month, U.S. President Donald Trump removed a 25% punitive tariff on India and said New Delhi would buy more oil from the U.S. and potentially Venezuela. Indian refiners, including Reliance, have been avoiding Russian oil purchases for deliveries since April and are expected to continue do so for a longer period, sources in the refining and trade sectors said. This shift could help India negotiate a stronger trade agreement with Washington.

Reliance has historically been a regular buyer of Venezuelan oil for its advanced refining facilities, but the company had to stop buying Venezuelan crude in early 2025 due to previous U.S. sanctions. The general licence now allows Reliance to resume these purchases.

Reliance operates two major refineries with a combined capacity of about 1.4 million barrels per day. With the new licence, the company can leverage its refining strength to process heavy Venezuelan crude efficiently, potentially lowering its overall cost of crude supply.

This move not only helps Reliance reduce its dependence on Russian oil but also strengthens its global refining strategy by diversifying its crude sources.

Reliance’s new U.S. licence to buy Venezuelan oil directly marks a significant development in global oil trade, easing sanctions constraints and offering the company a strategic advantage in securing cheaper crude supplies while supporting renewed oil exports from Venezuela.