US-India Trade Deal, Venezuelan Oil Sales

The United States and India are in active negotiations for the sale of Venezuelan oil to India. This is part of a broader interim trade deal where the United States has agreed to cut tariffs on Indian goods to 18% from 25% punitive levy, conditional on India diversifying its crude oil sources away from Russia. India, a major oil importer, has agreed to end purchases of Russian oil, which the U.S. claims funds Russia's invasion of Ukraine. Indian state-run refiners like Indian Oil Corporation, Hindustan Petroleum, and Bharat Petroleum, along with private refiners Reliance Industries and Hindustan Petroleum Corporation===HPCL-Mittal Energy Limited, have already placed orders for Venezuelan oil. The U.S. has also granted licenses to trading houses Vitol and Trafigura to market Venezuelan oil. This initiative also sees India joining the U.S.-led Pax Silica initiative for a silicon supply chain. The interim trade deal is expected to become effective in April.