INDIA'S biggest private oil refiner Reliance Industries has resumed crude imports from crisis-hit Venezuela, using diesel exports to pay for them under a barter system that the company said Tuesday (15) complies with US sanctions.
The Mumbai-based company owned by Asia's richest man Mukesh Ambani was forced to cap crude oil imports from the South American country in March following pressure from the US.
It also stopped exporting diluents needed to process thick Venezuelan crude to the country.
But under the terms of the barter arrangement, the energy-to-telecoms conglomerate has resumed crude imports from the Latin American country, Reliance spokesperson Tushar Pania said.
The deal will help ease Venezuela's inventories after US sanctions left its state-owned oil company PDVSA with huge volumes of unsold crude.
"Reliance Industries is exporting diesel and importing crude oil from Venezuela in a barter arrangement," Pania said.
"This is in compliance with US sanctions and Reliance is confident of adhering to them," he added, declining to say when the company had resumed the shipments.
Venezuela- a once-rich oil-producing nation is in the grip of an economic crisis and a political standoff between president Nicolas Maduro's government and opposition leader Juan Guaido.
The situation has worsened with successive rounds of US sanctions against Maduro's government, including steps that have severely curbed its oil exports.
PetroWatch editor Madhu Nainan said the barter agreement was "a win-win situation for both as Venezuela is battered with crippling sanctions while Reliance aims to boost its profitability".
"With this barter deal, Reliance can procure cheap crude... which will help their refining margins."
Refining margins are a key profitability gauge for Reliance, which operates the world's biggest refining complex in Gujarat state.
India became the top importer of crude from Venezuela in February after US president Donald Trump issued a de facto ban on imports.
In addition to Reliance, Nayara Energy, a Mumbai-based company that is partly owned by Russia's Rosneft is also a buyer of Venezuelan crude.
Starmer begins first India visit after trade deal signed in July
Modi welcomes UK’s largest-ever trade delegation
New accord cuts tariffs on goods including whisky, clothing and food
Starmer rules out expanding visa access for Indian professionals
PRIME MINISTER Keir Starmer on Wednesday said major opportunities were opening up in India as he began his first visit to the country to promote a trade deal signed earlier this year.
Indian prime minister Narendra Modi welcomed Starmer and what he described as “the largest ever trade delegation from the UK,” saying he hoped to strengthen their “shared vision of a stronger, mutually prosperous future.”
The two-day visit follows the signing of a major trade accord between the two countries in London in July.
“With India set to be the third-biggest economy in the world by 2028, and trade with them about to become quicker and cheaper, the opportunities waiting to be seized are unparalleled,” Starmer said.
India and the UK, the world’s fifth- and sixth-largest economies, have bilateral trade worth about $54.8 billion. Investments between the two countries support more than 600,000 jobs.
Starmer, who is leading a 125-member delegation including business leaders such as British Airways chief executive Sean Doyle, called the deal the “biggest” India had ever signed.
“I’ve asked the team to implement it as quickly as humanly possible... but I think it’s already changing the mood music, frankly,” he told the delegation. “I think the opportunities are already opening up, the contact has already increased, trade with India went up hugely in the last 12 months, and climbing.”
Under the new agreement, India will reduce tariffs on British goods such as whisky, cosmetics and medical devices, while the UK will cut duties on clothing, footwear and food products including frozen prawns from India.
As part of his visit, Starmer announced that three new Bollywood films will be shot in the UK from next year while visiting Yash Raj Film Studios.
“Bollywood is back in Britain, and it’s bringing jobs, investment and opportunity, all while showcasing the UK as a world-class destination for global filmmaking,” he said.
He also visited a Premier League community programme where he met young Indian footballers and coaches. The Premier League contributes around $13 billion to the UK economy and supports more than 100,000 jobs.
More football fans in India (71 million) now watch the Premier League than the total population of the UK. “I’m hugely proud of our national sport — it brings communities together and changes lives,” Starmer said.
However, Starmer ruled out expanding visa access for Indian professionals. “That isn’t part of the plan,” he told reporters en route to Mumbai. “We’re here now to take advantage of the free trade agreement that we’ve already struck. We’ve got to implement it.”
Rights groups have urged Starmer to raise the case of Scottish Sikh blogger Jagtar Singh Johal, detained in India since 2017 over an alleged plot to kill right-wing Hindu leaders. One of the nine charges against him was dismissed in March.
Starmer is scheduled to meet Modi on Thursday and address a fintech conference in Mumbai alongside him.
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