India halts Venezuelan oil imports amid US sanctions

India ceased oil purchases from Venezuela last April, coinciding with the United States' decision not to extend sanctions relief measures on Venezuelan crude, according to the spokesperson for Indian Foreign Minister Randir Jaiswal.

Speaking at a press conference in New Delhi on May 30, the spokesperson stated, "Regarding oil imports, some time ago we imported crude oil from Venezuela based on specific agreements reached. After that, those specific agreements have expired."

In March, Bloomberg reported that India had halted imports of Venezuelan crude oil as a precaution against what was seen as a likely reinstatement of US restrictions due to uncertainties surrounding the outcome of the presidential elections scheduled for July 28.

This recent decision contrasts with India's stance in December 2023 when Indian Oil Minister Hardeep Singh Puri confirmed that the country would resume purchasing Venezuelan oil after the United States eased sanctions on PDVSA in October. This easing of sanctions was seen as a gesture to support the Barbados Agreement between the Maduro administration and the Democratic Unity Platform, which established conditions for holding presidential elections.

However, in April, the United States announced that Treasury Department Licence 44 would not be extended "as Maduro and his representatives have not fulfilled the commitments made under the Barbados Agreement."

Despite the return of punitive restrictions, the White House has provided an avenue for multinational companies to request individual licences to continue operations in Venezuela.

Among those granted licences are French drilling company Maurel & Prom, Spanish oil company Repsol SA, BP and Trinidad and Tobago’s state energy firm NGC, and Harry Sargeant III and his Texas-based company, Global Oil Terminals, which obtained a licence to import Venezuelan asphalt.

On May 24, Minister of Petroleum and PDVSA chief Rafael Techellea stated that over 20 foreign companies had requested permission from the US Treasury to operate in Venezuela.

This aligns with comments made by US ambassador to Venezuela, Francisco Palmieri, who recently disclosed that they were evaluating over 50 requests for licences.

As previously reported by bne Intellinews, with the expiration of the short-lived US sanctions waiver, China is anticipated to increase its intake of Venezuelan oil, especially as other buyers such as India steer clear of embargoed oil to avoid conflicts with Washington. According to data intelligence firm Kpler, an estimated average of 130,000 barrels per day (bpd) previously purchased by Indian refiners and 174,000 bpd of shipments destined for the US could potentially be redirected to China, the world's largest crude importer.