The US and India have reached an agreement for the sale of Venezuelan oil to assist India in diversifying its sources and discouraging Russia’s invasion in Ukraine
Reuters- US envoy Sergio Gor stated on Friday that the United States is actively negotiating with India over the sale of Venezuelan oil to assist India in diversifying its sources of crude oil.
Earlier this month, the US President Donald Trump agreed to reduce the tariffs on Indian goods to 18% under an interim trade deal. He also eliminated a 25% corrective levy after India agreed to curtail the purchase of Russian oil, which was helping Russia’s invasion of Ukraine. He stated that India will purchase more oil from the US and possibly Venezuela.
The final trade deal with India is “sooner than later,” said Gorsuch, who said ‘the president invited Trump to visit India.’
According to Indian Minister for Trade Goyal, the interim trade agreement will come into effect in April, and the U.S. will issue its formal tariff notification on Indian goods, reducing it from 25% to 18%, before the end of this month.
America imposed sanctions against Russia after the invasion of Ukraine in 2022, and India has become the largest importer of Russian crude oil via maritime transport at very low prices, which has upset Western countries.
“On oil, there is an agreement with respect to oil; but we have seen diversification by means of India; but there is a commitment, and this is about the U.S. Government.” U.S. authorities told India that the U.S. had offered to sell Venezuelan crude oil to replace the imports of Russian crude oil into India.”
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In addition, the U.S. authorized Vitol and Trafigura to market and sell “millions” of barrels of Venezuelan oil after capturing Venezuelan president Nicolas Maduro last month and finalizing a supply agreement with interim president Delcy Rodriguez.
Indian State Oil, Bharat Petroleum, Hindustan Petroleum, and private refineries, including Reliance Industries and HPCL-Mittal Energy, are buying Venezuelan oil, according to Reuters.
