The US is negotiating with India to sell Venezuelan crude as part of a trade deal requiring New Delhi to diversify away from Russian oil imports.
NEW DELHI: The United States is in “active negotiation” over the sale of Venezuelan oil to India. US envoy Sergio Gor said the talks aim to help India diversify its sources of crude oil.
Diversification away from Russian crude is a condition for Washington cutting tariffs on goods imported from India. India is the world’s third-biggest oil importer and consumer.
“The Department of Energy is speaking to the Ministry of Energy here, and so we’re hoping to have some news of that very soon,” Gor told reporters in New Delhi. He was speaking on the sidelines of an event where India joined the US-led Pax Silica initiative for building a silicon supply chain.
US President Donald Trump this month agreed to cut tariffs on Indian goods to 18% under an interim trade deal. He also removed a 25% punitive levy after India agreed to end purchases of Russian oil, which the US says helps fund Russia’s invasion of Ukraine.
Gor said India would buy more oil from the US and potentially Venezuela. A final trade deal with India will be signed “sooner than later” as a “few tweaking points” are required.
He added that Trump has been invited to India by Prime Minister Narendra Modi. The interim trade deal is set to become effective in April.
India’s trade minister, Piyush Goyal, said on Friday the US is likely to issue a formal notification this month to reduce its tariff on Indian goods to 18%. The US and allies imposed sanctions on Russia’s energy sector following its 2022 invasion of Ukraine.
India subsequently became the top customer for Russian seaborne crude, buying it at discounted prices. “On the oil, there’s an agreement… We have seen India diversify on their oil,” Gor said.
“There is a commitment. This is not about India. The United States doesn’t want anyone buying Russian oil.” Reuters reported last month that the US had pitched the sale of Venezuelan oil to India to help replace Russian imports.
The US granted licences to trading houses Vitol and Trafigura to market and sell millions of barrels of Venezuelan oil. This followed the capture of Venezuelan president Nicolas Maduro last month and a supply agreement with interim president Delcy Rodriguez.
State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum have ordered Venezuelan oil. Private-sector refiners Reliance Industries and HPCL-Mittal Energy have also placed orders.
The Sun Malaysia
