US open to letting India access Venezuelan oil under new framework

The United States has indicated it is prepared to allow India to resume purchases of Venezuelan oil under a new framework in which Washington would oversee the marketing and revenue flow from such sales. The move signals a potential easing of restrictions for one of Venezuela’s largest oil customers prior to US sanctions, even as American authorities retain tight control over the process.

A senior US administration official confirmed that India could be included in the proposed arrangement, responding affirmatively when asked whether New Delhi would be permitted to buy Venezuelan crude given its substantial energy requirements. However, the official said details were still being finalised and declined to elaborate further.

The comments align with recent public remarks by US Energy Secretary Christopher Wright, who said Washington was open to selling Venezuelan oil to “almost all countries”.

Speaking in an interview with Fox Business, Wright explained that the US was allowing Venezuelan oil to flow again, but only under a structure in which the crude is marketed by the US government and revenues are deposited into accounts controlled by Washington.

According to Wright, the funds generated from these sales would eventually be channelled back to Venezuela in a manner designed to benefit ordinary citizens rather than corruption or the political leadership.

He also noted that there was strong interest in Venezuelan crude from buyers across the United States, Europe and Asia, suggesting the policy would not be limited to a narrow group of importers.

Highlighting the commercial rationale, Wright said many US refineries were originally built to process Venezuelan heavy crude and continue to have demand for it.

He framed the initiative as part of a broader strategy under President Donald Trump to enforce sanctions while reshaping Venezuela’s oil sector and curbing what he described as destabilising and criminal activities linked to its former leadership.

Enforcement, Wright stressed, would remain central to the policy. Referring to recent actions against tankers carrying sanctioned oil, he said Washington intended to ensure that only energy trade deemed lawful by the US would be permitted.

In separate remarks at an energy conference in New York, Wright said the US plans to market between 30 million and 50 million barrels of Venezuelan oil currently in storage, followed by continued sales from future production. He added that the US would also provide diluents and allow the import of equipment and spare parts to stabilise and gradually increase output.

US officials, Wright said, are in discussions with oil companies that previously operated in Venezuela, as well as those considering a return, to determine conditions that could attract fresh investment.

Before sanctions sharply reduced trade, India was a key buyer of Venezuelan crude, which suited its complex refineries designed to process heavy oil. Any renewed access could help India diversify its sources of supply at a time of sustained growth in energy demand.

Venezuela holds the world’s largest proven oil reserves, while India remains one of the fastest-growing consumers of energy globally, relying heavily on imports to meet its oil requirements.

With IANS inputs