US Signals Approval for India to Buy Venezuelan Crude Under Controlled Framework
The US has signaled that it may allow India to purchase Venezuelan crude oil under a new framework controlled by Washington. While Venezuela cannot sell oil directly due to sanctions, the US plans to manage and profit from these exports. If approved, the move could help India diversify oil supplies and revive limited trade frozen by sanctions.
“The White House has indicated it is ready to let India buy Venezuelan crude under a new structure that the US will control,” a senior official in the Trump administration told the publication. This means that Venezuela could now be selling oil to India. However, it will be controlled by the US. Venezuela does not sell its oil directly. This was stalled by the sanctions imposed by the US. Chances of it going back to a partial trade freeze have improved.
However, the US will benefit if Venezuela starts exporting their oil to several nations. This is because the US will be selling the Venezuelan oil under their control. In other words, the US gets a share of the benefits.
At present, India is not importing oil from Venezuela. Due to US sanctions, very few countries import oil from Venezuela. Nevertheless, with the US having gained control of Venezuela, it has now resorted to exporting Venezuelan oil to other countries at its will. In this respect, Venezuela might benefit from the removal of sanctions.
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When asked by a Trump administration official whether India could buy oil from Venezuela, the official told news agency IANS, "Yes," while emphasizing that the finer details are still being worked out.
According to a Fox Business report, the official also cited recent comments by US Energy Secretary Christopher Wright, who publicly stated that the US would be willing to sell Venezuelan crude oil to "almost all countries" if it was done through a strict framework controlled by Washington.
Prior to the imposition of US sanctions, India was reportedly one of the major consumers of Venezuelan oil imports, specifically purchasing heavy oil intended for the country's oil complexes. India may find new Venezuelan oil imports very beneficial, considering the increased demand for oil, especially with its refining activities on the upswing.
Addressing a different energy event in New York, Wright explained that "the US has decided to sell the 30 million to 50 million barrels of Venezuelan oil now in storage and, in the future, ongoing production, in effect seizing control of a significant portion of the global oil market."
