Reliance Industries Ltd., India’s largest private sector corporation, has halted further purchases of Venezuelan crude following U.S. President Donald Trump’s announcement of a 25% tariff on countries buying Venezuelan oil. The company will receive a final shipment but has paused additional purchases. Other Indian refiners may shift to Russian oil, while China, the largest buyer, may also reassess its imports.
Reliance Industries Ltd., India’s largest private-sector conglomerate known for its operations in energy, petrochemicals, retail, and telecommunications, has suspended further purchases of Venezuelan crude oil. The decision follows U.S. President Donald Trump’s imposition of a 25% tariff on nations importing Venezuelan oil.
According to industry sources, Reliance will still receive a final shipment of Merey crude that was already in transit but will not engage in new purchases. Other Indian refiners, facing similar trade restrictions, may pivot toward Russian oil, which remains a viable alternative amid global energy market shifts.
China, the largest importer of Venezuelan crude, is also expected to reassess its position in light of the tariff. This move could significantly impact Venezuela’s oil exports, which rely heavily on Asian markets for revenue.
The U.S. tariff is part of broader efforts to limit financial flows to the Venezuelan government, which has been under economic sanctions for years. Reliance had previously engaged in transactions with Venezuela while complying with U.S. regulations, often using oil-for-diesel swap arrangements to maintain supply chains.
With increasing geopolitical tensions and trade restrictions, Indian refiners may need to diversify their crude sources further. Market analysts suggest that Russian oil and Middle Eastern crude could fill the gap left by Venezuelan imports.
Reliance Industries Ltd., headquartered in Mumbai, Maharashtra, operates across multiple sectors, including refining and petrochemicals. The company, led by billionaire Mukesh Ambani, is a key player in India’s energy sector and has strategic trade relations with global oil suppliers.
As the tariff takes effect, global energy trade dynamics are expected to shift, influencing crude oil supply chains across Asia.
