RoydadNaft –  The United States is engaged in “active negotiation” regarding the sale of Venezuelan oil to India, aimed at helping India diversify its sources of crude oil, US Envoy Sergio Gor said on Friday.

The US has positioned diversification away from Russian crude as a condition for reducing tariffs on goods imported from India, the world’s third-largest oil importer and consumer.

“The Department of Energy is speaking to the Ministry of Energy here, and so we’re hoping to have some news of that very soon,” Gor told reporters on the sidelines of an event in New Delhi, where India joined the US-led Pax Silica initiative to build a silicon supply chain for high-tech products.

US President Donald Trump agreed earlier this month to reduce tariffs on Indian goods to 18% as part of an interim trade deal. He also lifted a 25% punitive levy after India agreed to halt purchases of Russian oil, which Washington claims helps fund Russia’s invasion of Ukraine.

Gor indicated that India would increase oil purchases from the US and potentially from Venezuela.

A final trade deal with India will be signed “sooner than later” once a “few tweaking points” are resolved, Gor added, noting that Trump has received an invitation to visit India from Prime Minister Narendra Modi.

The interim trade deal is due to come into effect in April, with the US expected to issue a formal notification this month to lower its tariff on Indian goods to 18%, according to India’s trade minister, Piyush Goyal.

The US and its allies imposed sanctions on Russia’s energy sector following Moscow’s 2022 invasion of Ukraine. India subsequently became the largest buyer of Russian seaborne crude, purchasing it at heavily discounted prices — much to the frustration of Western countries.

“On the oil, there’s an agreement… We have seen India diversify on their oil. There is a commitment. This is not about India. The United States doesn’t want anyone buying Russian oil,” Gor said.

The US had previously proposed Venezuelan oil sales to India as a means of replacing Russian imports, Reuters reported last month.

It granted licences to trading firms Vitol and Trafigura to market and sell millions of barrels of Venezuelan oil following the capture of Venezuelan President Nicolas Maduro last month and a supply agreement reached with interim president Delcy Rodriguez.

State-owned Indian refiners Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL), along with private players Reliance Industries and HPCL-Mittal Energy, have placed orders for Venezuelan oil, according to Reuters reports.