Business & Economy

India to resume Venezuela oil purchases after US sanctions relief

New Delhi, Dec 15 (EFE).- India said on Friday that it would resume buying oil from Venezuela after the United States eased sanctions against the South American nation, which, in 2020, was the third-largest oil supplier to the Asian country.

“Many of our refineries, including the one in Paradeep, are capable of processing heavy Venezuelan oil. We are willing to resume oil import with anyone who is not under sanction,” Petroleum Minister Hardeep Singh Puri told reporters in New Delhi when asked Indian plans to resume the purchases.

In October, Washington temporarily relaxed several sanctions against Venezuela, including those in the oil and gas sector, in exchange for President Nicolas Maduro’s government and the opposition agreeing to international supervision in the 2024 elections.

The easing of sanctions was a relief for the Venezuelan oil company, the primary source of income for the nation to repay international debts and maintain public spending in the country burdened by a very high cost of living.

The Indian minister said his country was using five million barrels of crude oil a day. “And it is increasing every day. So, if Venezuelan oil comes to the market, we will welcome it.”

India’s energy demand has significantly increased in the last few years and is projected to reach 11 million barrels per day by 2045, according to the petroleum ministry.

Venezuela was India’s third largest oil supplier in 2020 when the country closed the oil tap due to US sanctions.

India’s largest private company, Reliance, is one of the main suppliers of the diluent Venezuela uses to process its extra-heavy crude oil and convert it into exportable hydrocarbon. EFE

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