New Delhi, Oct 9 With the US increasing its naval presence in the southern Caribbean, Washington’s confrontation with Venezuela has once again entered a volatile phase which has a fallout for India’s oil supplies from the Latin American country, according to a new report.
For India, Venezuela is not a distant crisis -- it is a mirror reflecting the vulnerabilities of economic dependence on foreign policy cycles, according to an article in India Narrative.
India benefited with imports of heavy crude from Venezuela, as the US eased its sanctions against the South American nation in 2024. But as Washington reimposed restrictions this year, flows dwindled, exposing how quickly external politics can undercut India’s energy strategy, the article, written by energy expert Yash Malik, points out.
It also states that ONGC Videsh, holding stakes in Venezuelan oilfields worth hundreds of millions, now faces mounting difficulties repatriating dividends or navigating US licensing regimes. Every tightening of sanctions translates into blocked cash flows and frozen assets.
The article also highlights that the repercussions extend beyond oil as pharmaceutical exports to Venezuela — valued at $111 million in 2024 — are vulnerable to payment bottlenecks and compliance risks. When sanctions choke the financial system, even essential supplies are disrupted. The 2016 “oil-for-drugs” model offers a lesson in resilience: link trade to tangible assets, reduce exposure to Western channels, and insulate critical sectors from extraterritorial sanctions.
In a world where sanctions are wielded as instruments of statecraft, dependence on external regulatory goodwill is a strategic liability, the article states.
India’s energy calculus, stretching from Russian crude to Iranian partnerships and Venezuelan ventures, requires flexibility for diversifying supply, building legal and financial mechanisms to bypass unilateral restrictions, and asserting the right to chart an independent course, the article observes.
“New Delhi must treat Venezuela not as a diplomatic footnote but as a warning. Every blocked shipment or frozen dividend underscores the cost of timidity. India cannot let foreign capital determine when it may access its own energy or recover its own investments,” the article further states.
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