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Reliance Industries keeps tab of fresh Venezuela sanctions

Besides Reliance, Nayara Energy, part-owned by Rosneft, imports Venezuelan oil

By Reuters in New Delhi
  • Published 20.02.20, 12:55 AM
  • Updated 20.02.20, 12:55 AM
  • a min read
  •  
US President Donald Trump on Tuesday imposed sanctions on the trading arm of Russian oil major Rosneft, which has been the largest intermediary of Venezuelan oil, as Washington targeted Moscow over its backing of Venezuelan president Nicolas Maduro’s government. (Shutterstock)

Reliance Industries Ltd, a key buyer of Venezuelan oil, said it was assessing the impact of the latest US sanctions on Rosneft Trading SA, the Geneva-based trading unit of Rosneft that supplies oil to the private refiner.

US President Donald Trump on Tuesday imposed sanctions on the trading arm of Russian oil major Rosneft, which has been the largest intermediary of Venezuelan oil, as Washington targeted Moscow over its backing of Venezuelan president Nicolas Maduro’s government.

“Reliance will continue its direct communications with the US government to ensure that Reliance’s purchases of Venezuelan oil after the RTSA sanctions are both compliant with US sanctions and consistent with US policies regarding the Venezuelan oil sector,” the Indian refiner said in a statement.

Apart from Reliance, India’s Nayara Energy, part-owned by Rosneft, imports Venezuelan oil.

Rosneft accepts oil from Venezuelan state oil company PDVSA as payment for billions of dollars in loans extended to Venezuela over the past decade and ships the barrels onto refineries that used to buy directly from Venezuela, including Nayara’s facilities.

“In its dealings with Rosneft and otherwise, Reliance will continue to act in compliance with US sanctions and policy guidelines,” the company said.

Reliance, the operator of the world’s biggest refining complex, said its purchases of Venezuela crude oil are reported to and permitted by the US government.

“We have been in continuous communication with the US Department of State and the Office of Foreign Assets Control at the US department of treasury,” Reliance said.

Both Nayara and Reliance are long-time customers of PDVSA as the two refiners are capable of processing the type of heavy sour crude that the Opec member sells.