The key facts

  • Rubio called India a 'refining superpower' and noted Reliance's experience with Venezuelan oil
  • Obstacles remain in the form of sanctions against the Maduro regime
  • The US-India trade agreement is 'very close' to being signed

India's capacity to process Venezuelan oil

US Secretary of State Marco Rubio said on Tuesday, during a visit to India, that Indian energy companies have the capacity to process Venezuelan heavy oil and could help stabilize global oil supplies. Asked about Indian refineries processing increased volumes of Venezuelan oil, he replied: 'They can, and we will discuss it tomorrow.' Rubio emphasized that Reliance Industries previously processed heavy oil from Venezuela and has retained the expertise to resume operations if supplies increase.

Sanctions obstacles and energy security

Rubio called India a 'refining superpower' and noted that Indian companies hold previously issued concessions in Venezuela that could boost production. According to him, Venezuelan oil alone will not solve the global shortage, but would bring significant short-term relief. He said Delhi appears ready to move forward, although technical and legal obstacles remain: 'There may be a few obstacles in the form of sanctions and so on — we will have to work through the existing sanctions against the Maduro regime.' Rubio also stressed that 'energy is tied to national security,' warning that disruptions in energy access could lead to wars and economic collapse.

Moving away from Russian oil and the trade deal

Rubio welcomed India's efforts to diversify oil imports away from Russia, calling the move a 'smart' decision, while noting that 'doing it in one day is not easy.' Turning to bilateral economic relations, he said Washington and New Delhi are close to finalizing an agreement to resolve trade disputes: 'We are very, very close... I would say we are as close as one can be without a signed agreement. A small number of points remain to be agreed, and I think this will happen soon.' His remarks followed a statement by India's Trade Minister Piyush Goyal last week that the initial phase of the bilateral agreement had reached the legal drafting stage. Trade tensions between the countries escalated last year after the Donald Trump administration imposed 50% tariffs on Indian imports, partly due to India's continued purchases of Russian oil. In February, the US and India announced they had agreed on the terms of an interim framework agreement. Bilateral trade amounted to about $149.4 billion over the past year.