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Venezuela's Rodríguez arrives in India for key trade talks
Venezuela's acting president, Delcy Rodríguez, began a visit to India on Wednesday to discuss trade, investment, healthcare, and renewable energy. However, the core of bilateral relations remains Venezuela's oil exports, which have become increasingly vital for India as Middle East supply routes face disruptions.
India turns to Venezuela amid Gulf oil crisis
India, the world's third-largest oil importer, has significantly boosted purchases of Venezuelan crude in recent months. The shift comes as the Iran war has effectively closed the Strait of Hormuz, a critical chokepoint through which roughly half of India's crude imports-about 2.5 to 2.7 million barrels per day-typically pass.
Despite bilateral trade totaling just $679 million in 2024-25, Venezuela's role as an oil supplier has grown disproportionately. In May, it ranked as India's fifth-largest source of crude, supplying approximately 266,000 barrels per day, or 5.3% of India's total imports, according to data from maritime analytics firm Kpler. Only Russia, the UAE, Saudi Arabia, and Brazil provided more.
Sanctions relief revives oil flows
Indian refiners resumed Venezuelan crude imports in February after a year-long hiatus, following a sanctions-easing agreement between Washington and Caracas. Kpler data shows India imported around 280,000 barrels per day in April and May, with June arrivals expected to exceed 300,000 barrels per day.
While the timing aligns with Middle East supply concerns, Kpler's lead research analyst, Sumit Ritolia, noted that the initial shipments were likely secured earlier, reflecting a long-term sourcing strategy rather than a purely reactive move.
Why Venezuelan crude appeals to India
Beyond geopolitical considerations, Venezuelan crude offers practical advantages. Though heavy and sulfur-rich-making it difficult to refine-it is relatively inexpensive. India's advanced refineries are among the few capable of efficiently processing it into high-demand fuels like diesel and jet fuel.
This renewed interest marks a partial revival of a historic trade relationship. Before U.S. sanctions halted imports in 2019, Venezuela was one of India's top oil suppliers, peaking at third place in 2012. By 2019, it shipped nearly 16 million tonnes of crude annually, driving bilateral trade to $6.4 billion, predominantly oil-based.
Limits to Venezuela's role in India's energy mix
Experts caution that Venezuela is unlikely to transform India's energy landscape. While output has risen by 400,000 to 500,000 barrels per day this year, it remains far below historic levels, limiting its ability to replace major suppliers.
"Venezuelan barrels serve as an attractive diversification option, providing access to economical heavy crude while reducing reliance on any single supply region," Ritolia said.
Future expansion will depend on production capacity, sanctions, and broader geopolitical dynamics.
India eyes deeper energy ties
During Rodríguez's visit, she is scheduled to meet Prime Minister Narendra Modi and other senior officials. India's foreign ministry spokesperson, Randhir Jaiswal, described Venezuela as "an important energy partner," highlighting existing investments by Indian state-run energy firms in the country.
A government statement emphasized Venezuela's role as "an important partner in energy and investment," noting that Indian companies hold significant stakes in Venezuela's oil sector and are "keen to explore opportunities for further enhancing their presence."
