Trump administration allows India to buy Venezuelan oil amid 500 per cent tariff threat

US President Donald Trump has announced permission for India to purchase oil from Venezuela, signalling a resumption of India's oil imports from the country before sanctions were imposed on Venezuela.

The United States had threatened to impose a 500 per cent tariff on India a day earlier. Meanwhile, President Donald Trump's administration has made another major announcement for India.

A senior White House official stated that the US is prepared to allow India to purchase oil from Venezuela.

This indicates that countries that were the largest buyers of oil before sanctions were imposed on Venezuela may resume oil supply. The US is attempting to sell Venezuelan crude oil globally.

What did US officials say?

When asked if the US was prepared to allow India to purchase oil from Venezuela, considering its large energy needs, an administration official responded affirmatively.

The administration official said, "Yes," but declined to provide further details, as the specifics of selling Venezuelan oil are still being worked out.

The official referenced remarks by Energy Secretary Christopher Wright, who indicated that the US would be prepared to sell Venezuelan oil to "almost all countries."

What is the US condition for Venezuelan oil?

In an interview with Fox Business, Wright had stated that the US is allowing the resale of Venezuelan oil, but under a condition where sales would be conducted solely by the US government. The entire proceeds from oil sales would be deposited into accounts controlled by the US.

He further added that these funds would then be directed in a manner that benefits the Venezuelan people, not the corrupt regime or governance.

Global Interest in Venezuelan Oil

Wright mentioned that Venezuelan crude oil has significant interest not only from US refineries but also from buyers in Europe, Asia, and around the world.

He noted that many US refineries are historically designed to process Venezuelan crude oil, and demand remains high.

Wright stated, "Venezuela can sell oil in conjunction with the US, or not at all." Referring to the recent seizure of sanctioned oil tankers, Wright added that US actions demonstrated that sanctions and policies would not only be declared but also enforced.

It is worth noting that before US sanctions, India was a major buyer of Venezuelan crude oil, which was used to power complex refineries configured for heavy oil.