Reliance secures US nod to resume Venezuela oil trade: report

Reliance Industries Ltd (RIL) has secured US approval to resume importing oil from Venezuela despite White House sanctions on the South American country, Bloomberg reported, citing people familiar with the development.

The sanctions were first imposed on Venezuela in 2019. But after Venezuelan President Nicolas Maduro and the opposition last year signed a deal with Washington to guarantee free and fair elections in the South American country, the US had temporarily lifted restrictions on gold and oil sectors.

But after determining that the South American country failed to honor its agreement on free and fair polls, the US in April did not renew a general license for Venezuela to export oil and fuel to its chosen markets.

The US gave 45 days to companies to wind down transactions, Reuters had reported, adding that Washington could, however, issue some individual authorizations to foreign firms seeking to do oil business with Venezuela.

Reliance and other Indian companies had in October applied to the US Treasury for individual authorizations, but those were not granted.

Reliance accounted for at least 90% of India’s crude imports from Venezuela after the sanctions were lifted last year, Bloomberg reported, citing data from data intelligence firm Kpler.

Apart from Reliance, ONGC Videsh Ltd, the foreign investment arm of state-owned Oil and Natural Gas Corp. Ltd, had applied for a waiver to import crude from Venezuela.

Meanwhile, Reliance New Energy Ltd, a wholly owned subsidiary of RIL, said it bought the remaining 12.7% of shares from the existing shareholders of Reliance Lithium Werks B.V. for €3.7 million.

Reliance New Energy had entered into a definitive agreement in March 2022 to acquire substantially all of the assets of Lithium Werks BV for a total transaction value of $61 million, including funding for future growth. With the acquisition of the remaining 12.7% of shares, Reliance Lithium has become a wholly owned subsidiary of RNEL, the company said.

Incorporated in 2022 in the Netherlands, Reliance Lithium is engaged in trading battery cells and modules in Europe, the Middle East, and Africa.

Lithium Werks is a cobalt-free lithium battery technology and manufacturing firm with operations in the US, Europe, and China.

Its batteries are used in industrial, medical, marine, energy storage, and commercial transportation.

According to the company’s website information, Lithium Werk’s proprietary Nanophosphate powder delivers unique power, safety, and cycle life performance and is more ESG-friendly than competing technologies.

Reliance Lithium reported €9.19 million and €10.03 million in turnover for calendar years 2023 and 2022, respectively.