NEW DELHI — India has signaled its willingness to resume oil imports from Venezuela, according to a senior Foreign Ministry official, amid ongoing geopolitical pressures over energy sourcing. The announcement comes days after U.S. President Donald Trump claimed that New Delhi had agreed to curb purchases of Russian crude and increase imports from the United States and potentially Venezuela as part of a new trade deal.
Foreign Ministry spokesman Randhir Jaiswal addressed the matter during a press briefing on Thursday, emphasizing India's longstanding ties with Venezuela in the energy sector. "Venezuela has been a longstanding partner of New Delhi in the area of energy both in terms of trade and investment," Jaiswal said. He noted that Indian state-backed companies have maintained a partnership with Venezuela's national oil company, PDVSA, since 2008, underscoring the depth of these relations.
Jaiswal further clarified India's position on future imports, stating, "Consistent with our approach to energy security, India remains open to exploring the commercial merits of any crude supply options, including from Venezuela." This openness reflects New Delhi's strategy to diversify its energy supplies as the world's third-largest oil consumer, a role that has grown more critical since the escalation of the Ukraine conflict in 2022.
Historically, India imported crude oil from Venezuela until 2019, when U.S. sanctions on the South American nation forced a halt. Purchases briefly resumed in the fiscal year 2023-24 but were stopped again due to renewed restrictions, Jaiswal explained. The spokesman did not provide specific volumes or timelines for potential future deals but highlighted the commercial evaluation process that would guide any decisions.
Trump's comments on Monday, made during the announcement of a U.S.-India trade agreement, painted a picture of a significant shift in India's energy imports. The U.S. president asserted that India had committed to halting Russian oil purchases and ramping up acquisitions from American suppliers, with Venezuela mentioned as a possible additional source. However, Jaiswal's remarks stopped short of confirming any such agreement, focusing instead on India's independent approach to energy security.
The backdrop to these developments includes mounting pressure from Washington on New Delhi to reduce its reliance on Russian oil. Since Russia's invasion of Ukraine in February 2022, India has emerged as a major buyer of discounted Russian crude, helping Moscow circumvent Western sanctions. This has drawn repeated calls from the White House for India to align more closely with efforts to isolate Russia economically.
Russian officials, for their part, have expressed unawareness of any Indian decision to stop crude purchases from their country. In recent statements, Moscow has downplayed suggestions of a halt, maintaining that trade relations with New Delhi remain robust. India imported record volumes of Russian oil last year, with seaborne shipments reaching about 1.7 million barrels per day in the first half of 2023, according to data from energy trackers like Vortexa.
In January, Reuters reported that Reliance Industries, India's largest oil refiner, was seeking U.S. approval to restart imports of Venezuelan crude. The move would mark a potential thaw in relations strained by sanctions, allowing Reliance to access heavy crude suitable for its refining operations. Officials from Reliance have not publicly commented on the request, but it aligns with broader industry interest in Venezuelan supplies, which offer cost advantages when available.
Venezuela's oil sector has faced severe challenges under U.S. sanctions imposed since 2017, aimed at pressuring the government of President Nicolás Maduro. These measures have slashed exports from what was once Latin America's largest producer, but recent diplomatic overtures, including a U.S. license for Chevron to operate there, have hinted at easing. India's interest could provide Caracas with a vital revenue stream, especially as global oil prices fluctuate amid Middle East tensions.
The Indian Foreign Ministry's stance also comes at a time when New Delhi is navigating a delicate balance in international relations. As a non-aligned power, India has resisted full participation in Western-led sanctions against Russia while strengthening ties with the U.S. through initiatives like the Quad alliance. Energy security remains paramount, with domestic consumption projected to rise 3-4% annually, driven by economic growth and urbanization.
Experts on Indo-Venezuelan relations point to investments by Indian firms in Venezuelan fields as a foundation for renewed cooperation. Since 2008, companies like Oil and Natural Gas Corporation (ONGC) Videsh have held stakes in joint ventures with PDVSA, including the San Cristobal project in the Orinoco Belt. These partnerships, though dormant under sanctions, represent billions in potential value if trade resumes.
From the U.S. perspective, encouraging Indian imports from Venezuela could serve multiple goals: bolstering American allies in the Western Hemisphere, diversifying global supply chains away from Russia, and fostering economic ties with India. The trade deal announced by Trump includes provisions for increased U.S. agricultural and energy exports, though details on oil specifics remain under wraps.
Looking ahead, the feasibility of Venezuelan oil flowing to India hinges on U.S. policy shifts. Any approvals for companies like Reliance would likely require compliance with sanctions frameworks, potentially involving payments in non-dollar currencies to avoid secondary penalties. Indian refiners, which process about 5 million barrels per day, continue to seek stable, affordable supplies amid volatile markets.
Russian diplomats have reiterated their commitment to long-term energy partnerships with India, including through mechanisms like the rupee-ruble trade settlement to bypass SWIFT restrictions. Meanwhile, Venezuela's oil minister has welcomed overtures from Asian buyers, signaling readiness to ramp up production if sanctions lift.
As India weighs its options, the decision underscores the intricate web of global energy politics. With no immediate confirmation of halted Russian imports or firm Venezuelan deals, New Delhi's approach appears pragmatic, prioritizing commercial viability over geopolitical alignment. Observers will watch closely for U.S. responses and any concrete trade movements in the coming months.