Washington: The United States has indicated that it is open to allowing India to resume purchases of crude oil from Venezuela under a new export arrangement supervised by Washington. Senior US officials have described this as a significant policy shift that could partially reopen oil trade that had been largely blocked due to American sanctions on Venezuela.
Responding to questions from the media, a senior official confirmed that India could be permitted to buy Venezuelan crude again, though the final rules and operating structure are still being worked out. The official made it clear that any such trade would happen only under strict US oversight.
Under the proposed framework, Venezuelan oil would be sold through a system controlled by the US government. Payments from buyers would be routed through accounts managed by American authorities, with the stated aim of preventing misuse of funds and ensuring that revenues are used for the welfare of the Venezuelan people rather than political interests.
India was once among Venezuela’s largest oil customers. Indian refineries regularly imported heavy crude from the South American nation, which suited their advanced refining capacity. However, after US sanctions were tightened, these imports sharply declined and eventually became almost negligible.
The new proposal also involves selling millions of barrels of Venezuelan crude currently held in storage, with the possibility of additional future sales. If implemented, this could influence global oil trade patterns, with the US playing a central role in managing Venezuela’s energy exports.
For India, the move could offer an additional source of crude oil at a time when energy demand is steadily increasing. However, Indian refiners and policymakers remain cautious, as the plan still depends on regulatory approvals and detailed guidelines.
