India’s indication that it may resume crude oil imports from Venezuela underscores New Delhi’s continued focus on maintaining diversified and commercially viable energy supplies amid a fluid global oil market.

The Ministry of External Affairs (MEA) clarified that India’s decisions will remain market-driven, even as it faces scrutiny over its evolving crude sourcing patterns, particularly in light of United States’ claims that India has stopped buying Russian oil and may scale up purchases from American and Venezuelan suppliers.

MEA spokesperson Randhir Jaiswal, addressing a media briefing in New Delhi, placed Venezuela within the broader context of India’s long-term energy security strategy. He described Venezuela as a long-standing partner in the energy domain, not only in terms of crude trade but also in investment linkages.

This framing signals that New Delhi views ties with Caracas as part of a sustained engagement, rather than a short-term tactical move driven solely by current price dynamics or geopolitical pressure.

India had been a regular buyer of Venezuelan crude until the 2019–20 period, when imports effectively halted. This stoppage was largely a consequence of the tightening sanctions regime led by the United States against Venezuela’s state-owned oil company Petróleos de Venezuela S.A. (PDVSA), which complicated financial transactions, shipping, and insurance.

Indian refiners, particularly those in the public sector, had to recalibrate their sourcing portfolios in response to legal, compliance, and risk-management concerns arising from these sanctions.

The MEA confirmed that limited purchases of Venezuelan crude resumed in the 2023–24 window, reflecting a brief phase of relative sanction relaxation and some operational room for buyers. However, these flows were once again discontinued following the re-imposition or tightening of sanctions.

This stop–start pattern illustrates how India’s energy trade with Venezuela has become closely intertwined with the evolving sanctions landscape and the compliance thresholds of Indian refiners, shipping firms, and financial institutions.

Jaiswal drew attention to the presence of Indian public sector undertakings in Venezuela, underlining that energy cooperation extends well beyond spot cargo purchases. Indian PSUs have partnered with PDVSA since 2008, participating in upstream projects and joint ventures in Venezuela’s heavy oil belts. 

These long-standing equity and contractual relationships create an additional layer of strategic interest for India, as they potentially offer future production and offtake avenues once the regulatory and sanctions environment becomes more predictable and commercially favourable.

By reiterating that India’s crude sourcing is guided by commercial and market considerations, the MEA signalled continuity in policy rather than a sudden pivot. The spokesperson stressed that New Delhi remains open to all options that advance energy security at competitive prices.

This stance implicitly reinforces India’s longstanding position that it will not allow its energy policy to be dictated solely by external geopolitical pressures, whether they relate to Russia, Venezuela, or any other supplier state.

The reference to ongoing assessments “across multiple geographies” suggests that India is actively reviewing opportunities in various oil-producing regions, aligning with its strategic goal of avoiding overdependence on any single supplier or bloc.

In practical terms, this means that Venezuelan barrels will be evaluated alongside crude from the Middle East, the United States, Africa, and other Latin American producers, with refiners looking at factors such as landed cost, quality differentials, freight, payment channels, and sanctions risk.

India’s openness to Venezuelan crude also has technical implications for its refining system. Several Indian refineries, particularly complex coastal plants, are configured to process heavier and sourer grades like those from Venezuela. Access to such grades at a discount can support refinery margins and product slate optimisation.

However, this must be balanced against potential logistical disruptions, reputational risk, and the possibility of future tightening of sanctions that could strand cargoes or payments.

The MEA’s remarks also intersect with the broader narrative about India’s alleged cessation of Russian crude imports and potential substitution with supplies from the United States and Venezuela. While not directly addressing the full detail of these claims, the statement implicitly reaffirms India’s preference to retain flexibility in its crude sourcing basket and to respond pragmatically to shifts in global price spreads, freight rates, and political constraints. The guiding principle remains the same: to secure reliable, affordable energy supplies that underpin India’s economic growth.

In diplomatic terms, signalling openness to Venezuelan crude allows India to keep its options open without formally committing to a specific volume or timeline. It preserves room for manoeuvre vis-à-vis both Washington and Caracas, enabling New Delhi to adjust in line with any future sanctions relaxation, licensing carve-outs, or new commercial opportunities that might emerge.

This calibrated, commercially framed position is consistent with India’s broader approach to balancing competing geopolitical relationships while protecting its core economic interests.

The MEA’s comments reaffirm that Venezuela remains on India’s radar as a potential source of crude, but any renewed engagement will be filtered through a strict commercial and compliance lens. 

Decisions will ultimately rest with individual refiners and corporate boards, operating within the broader policy space that the government has deliberately kept flexible. In an uncertain global energy environment, such flexibility is central to India’s strategy of ensuring resilient and diversified crude oil supplies.

Based On ANI Report