Pressure has been mounting over Indian Government on Venezuelan crude purchase issue, as Trump administration had been putting creases on Modi government not to purchase Venezuelan crude ahead of an upcoming election, scheduled to be started from April 11th & due to be held over seven phases.
News of US pressure to stop buying Venezuelan crude came forth after Trump administration had again threatened Venezuelan armed-forces backed socialist President Nicolas Maduro to impose new sanctions. In an interview, addressing the Indian government, Washington’s main envoy to Venezuela, Elliott Abrams said, “We say that they should not be helping this regime, they should be on the side of the Venezuelan people”.
Abrams also added that the Trump Administration had also sent the same message to other governments and threatened foreign banks and private companies doing business with Maduro Government. Indian market had also been critical of the Venezuelan economy, as India had been the second largest client of Venezuelan heavy crude, after the United States, that pays in cash for the crude oil of the oil-dependent country.
Oil shipments to China and Russia, other major buyers of Venezuelan crude, has not been generating cash for a while, as these crude shipments had been used as “oil for loan” payments. Meanwhile, the United States and its European allies had also barred the Nicolas Maduro backed government from trading crude oil in US dollar and Euro, that leaves India as the lone buyer for Venezuelan crude.
As mentioned before, cash in payments for crudes had been of sheer significance for Venezuela, as the nation’s currency value had been almost nullified and payment generated through Indian shipments had remained as the only source for Maduro government to purchase the critical supply for its people such as medicine and food.