Washington/New Delhi (Reuters): The United States is in active negotiations with India over the possible sale of Venezuelan oil, aiming to help India diversify its crude supply, US envoy Sergio Gor said on Friday.
Speaking in New Delhi, Gor said the US Department of Energy is in discussions with India’s Ministry of Energy and that progress is expected soon. The move comes as Washington links tariff reductions on Indian goods to India’s efforts to reduce dependence on Russian oil.
Under an interim trade agreement, the United States has agreed to lower tariffs on Indian goods to 18 per cent after India committed to cutting back on Russian crude imports. Gor said a final trade deal between the two countries is likely to be signed soon, with only minor adjustments remaining.
The United States has encouraged India to purchase more oil from alternative sources, including the US and Venezuela. Washington has issued licences to trading firms such as Vitol and Trafigura to market and sell Venezuelan crude.
Several Indian refiners, including Indian Oil Corporation, Hindustan Petroleum, Bharat Petroleum, Reliance Industries and HPCL-Mittal Energy, have reportedly placed orders for Venezuelan oil.
The shift comes after Western sanctions were imposed on Russia’s energy sector following its 2022 invasion of Ukraine. India had become a major buyer of discounted Russian oil but is now moving to diversify its supply sources.
Officials say discussions are ongoing, and both sides are optimistic about reaching a broader trade and energy understanding in the coming weeks.
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