Author: Abhirami G and Nidhi Verma
NEW DELHI, February 20 (Reuters) – The United States is in “active negotiations” to sell Venezuelan oil to India to help India diversify its sources of crude oil, U.S. special envoy Sergio Gore said on Friday.
The United States has made diversification away from Russian crude a condition of cutting tariffs on imports from India, the world’s third-largest oil importer and consumer.
“The Department of Energy is in talks with the Department of Energy, so we hope to have some news soon,” Gore told reporters on the sidelines of an event in New Delhi where India has joined the U.S.-led Pax Silica initiative to build a silicon supply chain for high-tech products.
U.S. President Donald Trump agreed this month to cut tariffs on Indian goods to 18% under an interim trade deal. He also lifted punitive 25% tariffs after India agreed to stop buying Russian oil, which the United States said helped fund Russia’s invasion of Ukraine.
He said India would buy more oil from the United States and possibly Venezuela.
Gore said a final trade deal with India would be signed “sooner or later” as “some tweaking points” were needed, adding that Trump had been invited by Indian Prime Minister Narendra Modi.
Indian Trade Minister Piyush Goyal said on Friday that the interim trade agreement will take effect in April and the United States may issue a formal notification this month to reduce tariffs on Indian goods to 18%.
The United States and its allies imposed sanctions on Russia’s energy sector following Russia’s 2022 invasion. Subsequently, India became the largest customer of Russian seaborne crude oil and purchased Russian crude oil at extremely low prices, which shocked Western countries.
“On oil, there is a deal… We see India diversifying in oil. That is a commitment. It has nothing to do with India. The United States does not want anyone to buy Russian oil,” Gore said.
The United States has offered to sell Venezuelan oil to India to help replace Russian oil imports, Reuters reported last month.
It granted Vitol and Trafigura trading companies licenses to market and sell millions of barrels of Venezuelan oil after capturing Venezuelan President Nicolás Maduro last month and striking a supply deal with interim President Delcy Rodriguez.
State-run Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, as well as private refiners Reliance Industries Ltd and HPCL-Mittal Energy Ltd, have placed orders for Venezuelan oil, Reuters reported.
(Additional reporting by Manoj Kumar; Editing by Christopher Cushing)
