India on Thursday said its strategy of ensuring the country’s energy security and diversifying sources amid “evolving international dynamics” will be the main factor in deciding energy sourcing, including from Russia, while keeping open the option of oil purchases from Venezuela.
The comments from external affairs ministry spokesperson Randhir Jaiswal came three days after US President Donald Trump, while announcing the finalisation of a trade deal with India, said the Indian side had “agreed to stop buying Russian Oil and to buy much more from the United States and, potentially, Venezuela”.
When Jaiswal was asked at a weekly media briefing about Trump’s comments about India stopping purchases of Russian energy, he replied that the government has publicly stated on several occasions that ensuring the energy security of 1.4 billion Indians is its “supreme priority”.
He added, “Diversifying energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy to ensure this. All of India’s decisions are taken and will be taken with this in mind.”
In the case of Venezuela, Jaiswal said the South American country has been a long-standing partner for India in oil trade and energy exploration investments. India’s energy imports from Venezuela ceased in 2019-20 due to U.S. sanctions. The purchases resumed in 2023-24, but were halted again after the US imposed a 25% tariff on countries buying Venezuelan oil.
{{/usCountry}}In the case of Venezuela, Jaiswal said the South American country has been a long-standing partner for India in oil trade and energy exploration investments. India’s energy imports from Venezuela ceased in 2019-20 due to U.S. sanctions. The purchases resumed in 2023-24, but were halted again after the US imposed a 25% tariff on countries buying Venezuelan oil.
{{/usCountry}}Noting that Indian state-owned firms have an established partnership with Venezuela’s national oil company PDVSA, Jaiswal said: “Consistent with our approach to energy security, India is open to exploring the commercial merits of any crude supply options, including from Venezuela.”
India’s state-owned oil firms ONGC Videsh Limited (OVL), Indian Oil Corporation Limited (IOC) and Oil India Limited (OIL) have interests in two oil projects in Venezuela. OVL signed an agreement with a PDVSA subsidiary in 2008 for 40% participating interest in the San Cristobal project, while a consortium that includes all three companies holds a 40% stake in a company developing two blocks in the Orinoco Heavy Oil Belt.
Despite considerable pressure from the US and European countries, India ramped up purchases of discounted Russian crude in 2022, soon after the West imposed sanctions on Russia over the invasion of Ukraine. This took Russia from accounting for less than 1% of India’s energy supplies to becoming one of the top three suppliers, alongside Iraq and Saudi Arabia.
Trump’s frustration over the lack of success in ending the war in Ukraine led to his decision to slap a 25% punitive levy on India over Russian oil purchases. That tariff has now been removed, according to Indian and US officials.