The US has increased its naval presence in the southern Caribbean, escalating tensions with Venezuela. This development is affecting India’s oil supplies from the country. India benefited from heavy crude imports after the US eased sanctions in 2024. However, the new restrictions have quickly reduced flows, exposing India’s energy dependence on foreign policy shifts.
ONGC Videsh, which holds stakes in Venezuelan oilfields worth hundreds of millions, struggles to repatriate dividends and meet US licensing rules. Each tightening of sanctions blocks cash flows and freezes assets, creating financial risks for the company.
The impact goes beyond oil. Pharmaceutical exports to Venezuela, worth $111 million in 2024, face delays and compliance challenges. Lessons from the 2016 “oil-for-drugs” program highlight the need to link trade to tangible assets and reduce dependence on Western financial channels.
Energy expert Yash Malik warns that India must diversify partnerships with Venezuela, Russia, and Iran. The country should strengthen legal and financial measures to bypass unilateral restrictions. New Delhi must secure shipments, protect investments, and assert an independent energy strategy.
