Reliance says not violating US sanctions on Venezuela, bought oil with knowledge of US authorities

Reliance Industries (RIL) said it is not violating any US sanctions or policies and purchased crude from companies such as ROSNEFT long before the imposition of sanctions.

RIL had 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 reduction in their prior debt, the company said in a stock exchange filing.

It denied reports in a section of the media, which said the company was involved in an arrangement that leads to cash payment for oil supplies to PDVSA via third parties. The company termed the media reports as “false and reckless”.

Since sanctions were imposed, RIL has made such purchases with the full knowledge and approval of the US Department of State (USDOS) and RIL has informed USDOS of specific volumes and transactions. Such transactions do not lead to any consequent payment to PDVSA and do not violate US sanctions or policies, it said.

RIL’s price agreement with such sellers is at market rate and payments by RIL for such supplies are settled in cash or by product supply bilaterally between Reliance and such sellers. It is false to suggest that RIL would be settling such shipments via ROSNEFT to PDVSA. In these transactions, PDVSA is only the original physical supplier, as the crude oil originates in its export facilities, it added.

rajesh.kurup@thebusinessline.com