To recall, the Reliance received an exemption last year from the United States to resume crude oil imports from Venezuela.
Mukesh Ambani (File)
New Delhi: In a major development, the Mukesh Ambani-led Reliance Industries Limited (RIL) has decided to stop further purchases of crude oil from Venezuela. According to a Bloomberg report, the RIL made this decision after US President Donald Trump‘s move to grant the authority to impose a 25 percent tariff on countries purchasing oil from the South American nation.
It is important to note that Reliance Industries Limited, India’s largest privately owned refinery, is expecting the delivery of a cargo of Merey crude arriving from Venezuela. However, additional purchases have been stopped. People familiar with the matter, who requested anonymity due to the sensitivity of the issue, shared this information.
To recall, the Reliance received an exemption last year from the United States to resume crude oil imports from Venezuela. According to estimates by Kpler, Reliance has taken 6.5 million barrels since the beginning of this year. However, under Trump’s executive order issued on Monday, a “secondary” tariff will take effect from April 2, targeting any country importing Venezuelan oil.
Other Indian refiners bought Venezuelan oil from traders last year instead of purchasing it directly from the country. However, cheaper and more accessible Russian crude has long been a more attractive source of supply. Reliance also buys crude from Russia.
US Announces High Tariffs on Countries buying Venezuelan oil
US President Donald Trump has announced high tariffs on imports from countries buying Venezuelan oil and gas—a move that could impact India, China, and others while fueling global trade tensions.
“Venezuela has been very hostile to the United States and the Freedoms which we espouse. Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country,” Trump posted on Truth Social.
Trump further accused Venezuela of “purposefully and deceitfully” sending criminals to the United States, including violent offenders and members of organisations such as Tren de Aragua.