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    COVER STORY                                                              JUNE 12, 2026     |  The Indian Eye                    5

            eign capital and technology.                                                                          water-intensive crops such as maize.
                The timing of these discussions                                                                       These efforts form part of a broad-
            is  particularly  significant  because                                                                er strategy aimed at improving energy
            of  growing  uncertainty  surrounding                                                                 security  through  diversification  not
            Russian oil.                                                                                          only of suppliers but also of fuel sources.
                Since the outbreak of the Ukraine                                                                     At the same time, India is expand-
            conflict, India has emerged as one of                                                                 ing its international energy diplomacy.
            the largest buyers of discounted Rus-                                                                 Venezuela’s vast reserves of oil are
            sian  crude.  Those  purchases  have                                                                  attracting  attention,  but  discussions
            helped India contain inflationary pres-                                                               during Rodriguez’s visit also covered
            sures and maintain stable fuel supplies                                                               critical  minerals,  mining,  technology
            despite global volatility.                                                                            and industrial cooperation.
                However, recent comments from                                                                         The South American country
            US Secretary of State Marco Rubio                                                                     possesses substantial deposits of gold,
            have raised questions about the future                                                                diamonds and other strategic resourc-
            availability  of  Russian oil  in  global                                                             es that are increasingly important for
            markets. Rubio indicated that Wash-                                                                   modern manufacturing and clean-en-
            ington  would  prefer  to  end  existing                                                              ergy technologies. Access to such re-
            waivers allowing access to Russian                                                                    sources could help India secure supply
            crude “as soon as possible.”                                                                          chains  for  emerging  industries  while
                Although the final decision rests                                                                 deepening  economic  ties  with  re-
            with the US Treasury Department, the                                                                  source-rich nations.
            statement signals a potential tighten-                                                                    The growing engagement with
            ing of sanctions policy.                                                                              Venezuela also  reflects a larger geo-
                Temporary  exemptions  have  so                                                                   political  trend.  As  traditional  energy
            far allowed certain countries access to   Union Minister Hardeep Singh Puri calls on the acting President of Bolivarian Republic of   markets become more volatile, India
            Russian oil in order to stabilise global   Venezuela, Delcy Rodríguez, in New Delhi on Thursday. (@HardeepSPuri/ANI Photo)  is broadening its diplomatic outreach
            markets and prevent supply shortag-                                                                   to countries across Latin America, Af-
            es. Yet if those waivers are removed,   freight,  extended  credit  periods  and   ers are also seeking to reduce overall   rica and the Global South.
            India could face a more complicated   refinery-compatible crude grades. In-  dependence  on  imported  fossil  fuels   Prime  Minister  Modi  highlight-
            energy environment.               dia halted imports in May 2019 under   through alternative energy initiatives.  ed this dimension during his meeting
                The prospect of renewed restric-  pressure  from  US  sanctions,  forcing   Union Petroleum Minister Hard-  with  Rodriguez,  describing  coopera-
            tions explains why New Delhi is look-  refiners to diversify supplies.  eep  Singh  Puri  recently  announced   tion between India and Venezuela as
            ing  beyond  traditional  suppliers  and   However,  the  recent  West  Asia   the  rollout  of  around  5,200  ethanol   important not only for bilateral rela-
            exploring  new  partnerships  in  Latin   conflict  and  disruptions  around  the   dispensing stations across major urban   tions but also for the interests of the
            America, Africa and other regions.  Strait of Hormuz prompted India to   centres including Delhi-NCR, Mum-  Global South.
                The  United  States  remains  the   resume  limited  purchases  of  Iranian   bai,  Pune  and  Nagpur.  The  move  is   Ultimately,  India’s  energy  chal-
            single  most  important  external  in-  crude for the first time in seven years   intended  to  support  the  adoption  of   lenge is becoming more complex. The
            fluence  on  Venezuela’s  oil  industry.   after  temporary  US  sanctions  relief.   flex-fuel vehicles capable of operating   country must simultaneously manage
            Years  of  sanctions  sharply  reduced   The  government  confirmed  that  re-  on higher ethanol blends.  geopolitical  risks  in  West  Asia,  pre-
            Venezuelan  production  and  exports,   finers had secured Iranian oil without   The government believes that   pare  for  potential  changes  in  sanc-
            while recent easing of restrictions has   payment hurdles as part of efforts to   widespread adoption of flex-fuel tech-  tions on Russian oil, secure affordable
            helped revive output and attract for-  protect  energy  security.  Even  so,  fu-  nology could significantly increase eth-  supplies  for  a  growing  economy  and
            eign investment. Washington now has   ture imports will depend on sanctions   anol consumption and reduce reliance   accelerate  the  transition  towards  al-
            significant leverage because access to   policy,  commercial  viability  and  re-  on imported petroleum products.  ternative fuels.
            global  markets,  financing,  shipping   gional stability.              Puri has also linked the policy to   The search for new suppliers such
            and  energy  technology  largely  de-  India’s  energy  diversification   agricultural  transformation,  arguing   as Venezuela is therefore not a tem-
            pends on US policy decisions. Recent   strategy is not limited to securing ad-  that  greater  ethanol  production  can   porary response to current events but
            US  measures  have  allowed  broader   ditional crude oil imports. Policymak-  encourage farmers to shift towards less   part of a longer-term strategy. As glob-
            transactions  with Venezuela’s  state                                                                 al energy markets become increasing-
            oil company PDVSA and encouraged                                                                      ly  shaped  by  conflicts,  sanctions  and
            exports to countries such as India and                                                                strategic  competition,  diversification
            the  US  itself.  However,  any  future                                                               has become the cornerstone of India’s
            tightening  of  sanctions  could  quickly                                                             energy security policy.
            affect Venezuelan production, exports                                                                     For New Delhi, the lesson of re-
            and investment flows.                                                                                 cent years is clear: dependence on a
                For India, this means Venezuelan                                                                  limited  number  of  suppliers  carries
            oil remains available largely because                                                                 risks  that  can  no  longer  be  ignored.
            current US policy permits it, making                                                                  Whether  through  partnerships  with
            Washington a key factor in New Del-                                                                   Venezuela, investments in alternative
            hi’s energy calculations                                                                              fuels or broader diplomatic outreach,
                India’s  relationship  with  Iranian                                                              India is seeking to ensure that future
            oil has been shaped by a combination                                                                  economic growth is not held hostage
            of energy needs and geopolitical con-                                                                 to geopolitical shocks.
            straints.  Before  US  sanctions  were                                                                    The success of that strategy could
            reimposed  in  2019,  Iran  was  among    The recent West Asia conflict and disruptions around the Strait of Hormuz prompted India to   play a decisive role in determining the
            India’s  top  crude  suppliers,  offering   resume limited purchases of Iranian crude for the first time in seven years (ANI file photo)  country’s economic resilience in an in-
            attractive  terms  such  as  discounted                                                               creasingly uncertain world.

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