New Delhi
India needs to strengthen its energy security as shifting global politics threaten its oil supplies, particularly from Venezuela, according to a recent report published in India Narrative.
The report by energy expert Yash Malik warns that growing US naval activity in the southern Caribbean and renewed tensions with Venezuela could disrupt India’s energy imports.
India had benefited from importing heavy crude oil from Venezuela after US sanctions were relaxed in 2024. However, Washington’s renewed restrictions this year have sharply reduced supplies, exposing India’s vulnerability to global policy changes. The report noted that ONGC Videsh, which holds significant stakes in Venezuelan oilfields, now faces problems repatriating profits and dealing with complex licensing under US rules.
The article also said the effects go beyond oil. India’s pharmaceutical exports to Venezuela, worth $111 million in 2024, are now facing payment delays and compliance issues. Sanctions have made it harder to process payments, affecting even essential goods.
Malik highlighted that India should learn from its 2016 “oil-for-drugs” model, which allowed trade through asset-based exchanges instead of relying on Western banking channels. This could help protect critical sectors from sanctions and ensure steady supplies.
The report added that India’s broader energy network — stretching from Russia to Iran and Venezuela — must remain flexible. To ensure stability, India should diversify suppliers, create stronger financial systems to bypass unilateral sanctions, and assert its right to manage its own energy interests independently.
“Venezuela should serve as a warning,” Malik wrote. “India must not let foreign powers dictate when it can access its own energy or recover its investments.”