American officials are currently working with India on arrangements to sell Venezuelan crude oil to the Asian nation, according to U.S. Envoy Sergio Gor, who spoke to reporters Friday in New Delhi.
The discussions are part of Washington’s broader push to help India reduce its reliance on Russian oil imports, a move that’s connected to recent trade negotiations between the two countries.
“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 explained during a media briefing on the sidelines of an event where India joined America’s Pax Silica program focused on semiconductor supply chains.
The oil arrangement comes as President Donald Trump recently finalized an interim trade agreement with India this month, reducing tariffs on Indian imports to 18 percent. Trump also eliminated a 25 percent penalty tax after India committed to stopping purchases of Russian crude oil.
According to the agreement, India will increase its oil purchases from American sources and potentially from Venezuela as well.
Trade Minister Piyush Goyal announced Friday that the interim deal will take effect in April, with formal notification of the tariff reduction expected this month. Gor indicated that a comprehensive trade agreement will be completed “sooner than later,” noting only minor details need to be resolved. He also mentioned that Prime Minister Narendra Modi has extended an invitation to Trump to visit India.
The push for oil diversification stems from sanctions imposed by America and its allies on Russia’s energy sector following Moscow’s 2022 military action in Ukraine. Following those sanctions, India became Russia’s largest buyer of seaborne crude oil, purchasing it at significantly discounted prices, which frustrated Western governments.
“On the oil, there’s an agreement… We have seen India diversify on their oil. There is a commitment. This is not about India. The United States doesn’t want anyone buying Russian oil,” Gor stated.
Reuters previously reported last month that American officials had proposed Venezuelan oil sales to India as a replacement for Russian imports. Washington has issued permits to trading companies Vitol and Trafigura to handle the marketing and sale of millions of barrels of Venezuelan crude following recent political changes in Venezuela.
Several major Indian energy companies, including state-owned Indian Oil Corp, Hindustan Petroleum, and Bharat Petroleum, along with private refiners Reliance Industries and HPCL-Mittal Energy, have already placed orders for Venezuelan oil, according to industry reports.
