US Secretary of State Marco Rubio plans to encourage India's Reliance Industries to refine more Venezuelan crude and potentially produce oil in the South American country, he told reporters in Mumbai on Tuesday.
Rubio arrived in India days after President Donald Trump waived potential sanctions on major buyers of Russian oil, including India. The move could help clear the way for a trade deal, though US lawmakers have criticised the administration for easing pressure on Moscow.
During a two-day visit to Mumbai and Jamnagar, Rubio is due to meet political and business leaders, including Indian Foreign Minister S Jaishankar and Reliance Chairman Mukesh Ambani.
"We will talk about (refining more Venezuelan crude) tomorrow with Reliance...They have done so in the past, and I think as more and more of Venezuelan oil comes online, that is something they can do," Rubio said.
Reliance operates two refineries at its Jamnagar complex, with a combined capacity of about 1.4 million barrels per day. The facilities can process Venezuela's heavy crude, and the company has become a significant importer of the country's oil as production has increased.
Rubio said the possibility of Reliance producing oil in Venezuela would also be discussed. The company has previously operated in the country but is not currently active there.
"We are going to go see what the holdup is and what opportunities exist...this is a company that has had a presence in Venezuela in the past, and whose refining capabilities are substantial," he said.
Trade Deal Nears Completion
Trump last Friday waived potential tariffs aimed at punishing India for its extensive purchases of Russian crude, removing one obstacle to a trade agreement between Washington and New Delhi.
A law signed by Trump in September authorises tariffs of up to 100 percent on the five biggest importers of Russian oil, a group that includes India, the second-largest buyer after China.
Speaking to CNN News18 on Tuesday, Rubio said sanctions against Russia also affect countries doing business with Moscow, requiring Washington to balance competing interests.
He said a trade agreement with India could help resolve tensions over the issue, while acknowledging the challenges posed by the war in Ukraine and its wider economic impact.
Trump's decision to waive the bill's substantive provisions has drawn criticism from both Democrats and Republicans who want greater economic pressure on Moscow over its military advancement into Ukraine.
Rubio said finalising a trade deal was one factor behind the decision. He added that the administration was beginning a 60-day review period to consider which additional tariffs, if any, should be imposed.
In his interview with CNN News18, Rubio said negotiations had reached the technical stage and a deal could be completed "in a matter of weeks, not months".
The US also signed a deal with Russia last week to import diesel in an effort to reduce domestic fuel prices ahead of the midterm elections, raising questions about Washington's continued focus on curbing India's Russian oil purchases.
"Every country has a complex set of factors that they have to take into account," Rubio said on Monday when asked about India's purchases of Russian crude.
India imports more than 85 percent of its crude oil needs to support its fast-growing economy.
Rubio's visit follows a trip to Samarkand in Uzbekistan, where he met political and business leaders from Central Asia.