Indian firms can refine Venezuelan crude to boost global oil supplies: Rubio

By Yasin Gungor

ISTANBUL (AA) - Indian energy companies have the capacity to refine Venezuelan heavy crude and help stabilize global oil supplies, US Secretary of State Marco Rubio said Tuesday during a visit to India.

"They can, and we'll talk about that tomorrow," Rubio said when asked about Indian refiners processing increased Venezuelan oil output.

He highlighted that Reliance Industries had previously processed heavy crude from Venezuela and retained the expertise to resume operations as more supplies became available.

Describing India as a "refining superpower," Rubio said the country's processing facilities played a vital role in global energy distribution.

He said that Indian corporations hold pre-existing oil concessions in Venezuela capable of boosting extraction, adding that while Venezuelan petroleum cannot single-handedly resolve worldwide shortfalls, it can deliver meaningful short-term relief.

The secretary of state said New Delhi appeared willing to move forward, although technical and legal obstacles remained.

"There might be a few impediments that stand in the way in terms of sanctions and so forth that we'll have to work through pre-existing sanctions on the Maduro regime," he said.

Rubio stressed that "energy is related to national security," warning that disruptions to energy access could lead to wars and economic collapse.

He also welcomed India's efforts to diversify its oil imports away from Russia, describing the shift as a "smart" decision while acknowledging that "it's not easy to do that from one day to the next."

- Bilateral trade agreement nears completion

Turning to bilateral economic relations, Rubio said Washington and New Delhi were close to finalizing an agreement aimed at resolving trade disputes.

"We're very, very close," he said.

"I would say we're about as close as you can be without having an executed agreement. I think there's a small number of items left to wrap up, so I think that will happen shortly."

His remarks followed an announcement last week by Indian Commerce Minister Piyush Goyal that the initial phase of the bilateral agreement has reached the legal drafting stage.

Trade tensions between the two countries intensified last year after the administration of US President Donald Trump imposed 50% tariffs on Indian imports, partly over New Delhi's continued purchases of Russian crude oil.

The US and India announced in February that they agreed on the terms of an interim framework deal aimed at resolving their bilateral trade dispute.

Bilateral trade between the two countries, which maintain a comprehensive global strategic partnership, totaled approximately $149.4 billion last year.

Muhammed Yasin Güngör