Energy security is on the agenda as New Delhi diversifies crude supplies in the aftermath of the Middle East conflict
Venezuela’s Acting President Delcy Rodriguez will hold discussions with Indian Prime Minister Narendra Modi this week, with energy security topping the agenda amid the war in Iran.
Rodriguez, who will be in India on Wednesday on her first visit to New Delhi after taking over as acting president, is expected to hold discussions on the “full spectrum of India-Venezuela relations,” the Indian Foreign Ministry said. Interestingly, her visit to India was announced by US Secretary of State Marco Rubio in New Delhi last week.
Rubio had made an open push for the sale of both US and Venezuelan oil to India, saying Washington wanted “a bigger part” of India’s energy import portfolio and also pointed to “opportunities with Venezuelan oil.”
India, which imports about 85% of the crude, has been looking to diversify its sources of oil following the supply disruptions in the Middle East.
Rodriguez became Venezuela’s acting president following the capture and removal of President Nicolas Maduro by US forces in January. The Trump administration then took control of Venezuela’s oil sales, with the funds going into US-supervised accounts. “When you add Venezuela and the United States together, we have 55% of the oil in the world,” Trump said at the time.
Rodriguez’s official reason for visit is to attend the deferred first International Big Cat Alliance Summit. India’s Ministry of External Affairs said she will also explore further cooperation in energy, trade, investment, pharmaceuticals, and health care.
Ironically, India was once a major buyer of the heavy, sulfur-rich Venezuelan crude before US sanctions severely restricted trade in 2019.
After the Ukraine conflict began, Russia became India’s single largest oil supplier. Imports amounted to around 40% of New Delhi’s crude basket, helped by discounted Urals that improved refinery margins and tempered the import bill.
But the US imposed 25% punitive tariffs on India for the Russian oil purchases as it sought to wean New Delhi away from Moscow. But as supply constricted in the global markets, Washington has issued sanctions waivers for Russian oil purchases.
