U.S. Special Envoy Sergio Gor stated on Friday that the United States is engaged in "active negotiations" with India concerning the export of Venezuelan oil to India, aiming to assist India in diversifying its sources of crude oil imports.
The U.S. has made reducing imports of Russian crude oil a precondition for lowering tariffs on Indian goods exported to America. India is the world's third-largest oil importer and consumer.
Speaking to reporters on the sidelines of an event for India's accession to the U.S.-led "Pax Silica" initiative, which aims to build silicon supply chains for high-tech products, Gor said, "The U.S. Department of Energy is in communication with the Indian Ministry of Energy, and we hope to see progress on this matter soon."
U.S. President Donald Trump agreed this month to reduce tariffs on Indian goods to 18% as part of an interim trade agreement. This followed India's commitment to halt purchases of Russian oil, which the U.S. states funds Russia's invasion of Ukraine, leading Trump to remove a 25% punitive tariff on Indian goods.
Trump indicated that India would increase its oil imports from the United States and potentially make purchases from Venezuela.
Gor mentioned that the final U.S.-India trade agreement "will be signed very soon," with only "a few minor details requiring adjustment." He also revealed that Indian Prime Minister Narendra Modi has extended an invitation for President Trump to visit India.
Indian Trade Minister Piyush Goyal said on Friday that the interim trade pact is set to take effect in April, and the U.S. is expected to issue a formal notification this month to reduce tariffs on Indian goods to 18%.
Following the U.S. and its allies imposing sanctions on Russia's energy sector after the 2022 invasion of Ukraine, India became the largest buyer of Russian seaborne crude oil at significantly discounted prices, a move that caused considerable dissatisfaction among Western nations.
Gor stated, "There is a consensus on the oil issue... We see India diversifying its oil imports, and India has made commitments. This is not targeted at India; the U.S. does not wish for any country to purchase Russian oil."
Last month, Reuters reported that the U.S. had proposed to India the idea of purchasing Venezuelan oil as an alternative to Russian crude imports.
Last month, after the U.S. dropped charges against Venezuelan President Nicolás Maduro and reached a supply agreement with interim President Delcy Rodríguez, it issued licenses to traders such as Vitol and Trafigura, permitting them to market and sell millions of barrels of Venezuelan oil.
According to reports, Indian state-owned oil companies, including Hindustan Petroleum, Bharat Petroleum, and private refiners such as Reliance Industries and HPCL-Mittal Energy, have placed orders for Venezuelan oil.
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