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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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