NEW DELHI: India gave a red-carpet welcome on Thursday to Venezuela’s interim President Delcy Rodriguez, as Prime Minister Narendra Modi held talks aimed at strengthening trade ties with the oil exporter.
India’s foreign ministry said after the talks that New Delhi saw Venezuela’s vast oil reserves as an “opportunity”, noting that the South American country had already become a major source of crude.
Rodriguez has led Venezuela, which accounts for around 17 per cent of global crude reserves, since January, when US forces captured former socialist president Nicolas Maduro.
She shook hands with Modi outside New Delhi’s Hyderabad House before the talks began.
Indian Foreign Minister Subrahmanyam Jaishankar said talks with Modi would “further strengthen our cooperation”. Rodriguez, speaking after arriving on Wednesday, said she expected “very fruitful” discussions.
Rodriguez’s visit comes as India, the world’s third-largest oil importer, increases purchases of Venezuelan crude to offset supply disruptions linked to the war in the Middle East.
“The government of India, because of the developments in the Middle East, is aggressively seeking out new sources of crude oil and energy to ensure India’s energy security,” senior Indian foreign ministry official Rudrendra Tandon told reporters after the meeting.
“So Venezuela is an opportunity, and it is very much part of our plan.”
India normally sources about half of its crude through the Strait of Hormuz.
But Iran has restricted shipping through the strait, which normally carries about one-fifth of the world’s oil and liquefied natural gas shipments, since the United States and Israel launched attacks on February 28.
“Naturally, today’s discussions focused on forging an energy partnership,” Tandon said.
“In the energy sector, we see a perfect complementarity. In fact, in our spot purchases, Venezuela has already emerged as the third-largest supplier this month.”
India, the world’s fastest-growing major economy, has been hit by the global energy shock sparked by the Iran war.
Elevated crude prices are driving up India’s import bill, threatening to stoke inflation and widen its current account deficit to a 14-year high, while adding pressure on the rupee.
“Venezuela possesses one of the largest oil reserves in the world,” Tandon said.
“The Indian economy is a large and growing consumer of oil and will have stable demand growth for many years to come.”_ AFP
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