Under Biden Administration Indian plans to recommence oil deals with Iran and Venezuela

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On Wednesday, Oil Minister, Dharmendra Pradhan said that India wishes to diversify its oil imports that include recommencing the oil imports from Iran and Venezuela.

Pradhan said to Reuters about his expectation for the resumption of oil imports from Iran and Venezuela under the Biden administration, “As a buyer, I would like to have more buying places. I should have more destinations to go for purchasing (oil).”

During US sanctions on Iran, India ceased its crude oil imports from Iran. However, India increased its oil shipments from Nigeria, Venezuela, the USA, Iraq, and the United Arab Emirates.

In 2019, imports from Iran fell by 85 percent with just 1.97 MT shipped during the period, whereas 2018’s imports were recorded at 13.3 MT.

An executive from one of the three government-owned OMC said, “Government-owned OMC have stopped importing oil from Venezuela since the US announced sanctions on the country’s oil company PDVSA. However, it seems that private companies continue to import Venezuelan crude either directly or indirectly.”

In June 2020, India did not import oil from Venezuela for the first time since June 2009.

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