United States’ envoy Sergio Gor said that the US and India are in active negotiations over the sale of Venezuelan oil to India, Reuters reported. The report added that the US has made diversification away from Russian crude oil a condition for cutting tariffs on goods imported from India.
“The Department of Energy is speaking to the Ministry of Energy here, and so we’re hoping to have some news of that very soon,” Gor said on the sidelines of an event in New Delhi where India joined the US-led Pax Silica initiative aimed at building a silicon supply chain for high-tech products.
“On the oil, there’s an agreement… 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,” Gor said.
US President Donald Trump this month agreed to cut tariffs on Indian goods to 18% under an interim trade deal. He also removed a 25% punitive levy after India agreed to end the purchase of Russian oil. He said India would buy more oil from the US and potentially Venezuela.
India-US trade deal signing soon
Gor said that a final trade deal between India and the US will be signed “sooner than later” as a few tweaking points are required.
Indian Commerce Minister Piyush Goyal also said that the interim trade deal is set to become effective in April, and the US is likely to issue a formal notification this month to reduce its tariff on Indian goods to 18 per cent.
Gor said that Prime Minister Narendra Modi has invited US President Donald Trump to India.
Venezuelan oil orders by Indian companies
Reuters reported that Indian public sector oil companies Indian Oil, Hindustan Petroleum and Bharat Petroleum have ordered Venezuelan Oil.
The report added that India’s private sector petroleum companies Reliance Industries and HPCL-Mittal Energy have also placed orders for Venezuelan oil.
Reuters reported that the US had pitched the sale of Venezuelan oil to India to help replace Russian oil imports.