'Commercial viability key': MEA says open to Venezuela, other crude sources

The MEA said India is open to sourcing crude from Venezuela and other countries based on commercial viability, adding that energy security for 1.4 billion people remains its top priority

The government on Thursday said it is keeping all options open to source crude oil from Venezuela and other regions, depending on commercial viability. The statement comes after US President Donald Trump said that India has agreed to stop buying Russian oil and may raise imports from the US and Venezuela.

 

During a press briefing, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal said that India’s energy decisions are guided by market conditions and long-term energy security needs, especially at a time of global supply uncertainty.

 

He spoke about India’s long-term engagement with Venezuela in the energy sector. He said the partnership includes both trade and investments. "As far as Venezuela is concerned, it has been a long-standing partner for us in the area of energy, both on the trade side and also on the investment side," Jaiswal said.

 

 

"We remain open to exploring options of availability of crude oil from Venezuela and other places depending on its commercial viability," he added.

 

He further said that India had been importing crude oil from Venezuela until 2019-20 before it was stopped.

 

According to the MEA, crude imports resumed briefly in 2023-24 but were halted again after US sanctions were reimposed.

 

Indian PSUs present in Venezuela since 2008

 

The MEA spokesperson also highlighted the role of Indian public-sector undertakings (PSUs) in Venezuela’s energy sector. He said Indian companies have had a presence in the country for over a decade.

 

"Indian PSUs have established partnerships with the National Oil Company of Venezuela, PDVSA and our PSUs have maintained a presence in the country since 2008," he said.

 

Jaiswal added that India’s approach to crude oil sourcing is driven by market factors and commercial considerations. "Consistent with our approach to energy security, India remains open to exploring the commercial merits of any crude supply options," Jaiswal said, adding that India is reviewing crude supply options across multiple regions.   

 

Trump claims India will stop buying Russian oil

 

On Monday, Trump claimed about India’s oil purchases while announcing a trade deal between the two countries. In a post on Truth Social, Trump said India had agreed to stop buying Russian oil and would instead increase purchases from the US and possibly Venezuela. He also suggested that the move could help bring an end to the Russia-Ukraine war.

 

“It was an honour to speak with Prime Minister Modi, of India, this morning... He agreed to stop buying Russian oil, and to buy much more from the United States and, potentially, Venezuela,” Trump wrote.

 

While the Indian government has confirmed that a trade deal with the US is in place, it has not shared details on any commitment to halt Russian oil imports.

 

Energy security for 1.4 billion people is top priority: MEA

 

Jaiswal made it clear that ensuring energy security for India’s population remains the government’s main focus. "Insofar as India's energy sourcing is concerned, the government has stated publicly on several occasions that ensuring the energy security of 1.4 billion Indians is the supreme priority of the government," Jaiswal said.

 

He added that diversifying energy sources is central to this strategy. "Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this," he said.

 

"All of India's actions are taken and will be taken with this in mind."   

 

India-US trade deal: What’s next?

 

Under the trade deal, tariffs on Indian imports will be reduced from 25 per cent to 18 per cent. The move comes months after the US imposed 50 per cent tariffs on Indian exports, including a 25 per cent punitive duty linked to India’s purchase of Russian crude.

 

Union Commerce and Industry Minister Piyush Goyal said on Thursday that India and the US plan to sign the first tranche of a formal, legal trade agreement by mid-March.

 

Before that, the two sides are expected to virtually sign a joint statement within the next four to five days. Once signed, the tariff reduction will be implemented through a White House executive order.

 

(With agency inputs)