Purchase of Venezuelan oil not in violation of US sanctions: Reliance

NEW DELHI:  Reliance on Saturday said it had not violated US Sanctions on Venezuela and had bought crude from the Latin American nation ahead of the sanctions through firms such as Russia’s Rosneft, after informing US State Department.

This follows reports that Venezuela was possibly evading US sanctions by funnelling the cash flow through Russian state energy giant Rosneft.

The US has imposed sanctions in January this year on the Latin American nation in a bid to oust President Nicolas Maduro whom it describes as a dictator. 

“Reliance has purchased Venezuelan crude oil from companies such as ROSNEFT long before the imposition of US sanctions, as they do get title to Venezuelan oil in return for a reduction in their prior debt,” the Mumbai-based major said in a statement today.

Since sanctions were imposed, Reliance said it has made Venezuelan“purchases with the full knowledge and approval of the US Department of State. Such transactions do not lead to any consequent payment to PDVSA (Petróleos de Venezuela, S.A., the Venezuelan state-owned oil and natural gas company)  and do not violate US sanctions or policies.”

The American sanctions impose curbs on dealings with those designated in the sanctions order and it includes PDVSA.

RIL went to state that it “would be false” to suggest that it was settling such shipments via Roneft to PDVSA.

Reliance, whose twin refineries at Jamnagar in Gujarat were major importers of Venezuelan crude oil, has reduced purchases by about a third.