Rubio pitches U.S., Venezuela oil to India - U.S. official's visit comes at time of tension in India-U.S. ties due to issues including U.S.'s recent moves to stop H-1B visas, threatened sanctions that have since been held off over India's import of Russian oil, and delayed FTA negotiations.
"We're very, very close. I would say we're about as close as you can be without having executed the free trade agreement. I think there's small number of items left to wrap up, so I think that will happen shortly," Rubio said, adding State Department was involved closely with negotiations between trade officials.
While Mr. Jaishankar met Mr. Abdullah in Mumbai just four days after he had travelled to Abu Dhabi where two Foreign Ministers had also spent time together, this is Rubio's second visit to India in five months after last visit to Delhi for Quad Foreign Ministers meeting in May this year. This time around, Rubio's focus is on economic side of bilateral relationship, officials said.
Read more - The Oil Squeeze
There have been questions about Rubio's planned two-day visit to Jamnagar, as well as criticism that he had summoned Jaishankar to Mumbai rather than travelling to meet him in Delhi. Speaking to journalists at Taj Mahal Palace Hotel in Mumbai where he and Jaishankar offered tributes to those who were killed in 26/11 terror attacks, Rubio fielded questions over purpose of his visit, and why he had returned to India so soon.
"First of all, I will point out that Foreign Minister of India has been to United States four times this year," he explained, adding as most populous country and largest democracy that is trade and defence partner, strong strategic partner and Quad member, India is important country to interact with.
Reviving Reliance's Venezuelan link - He explained that visit to Jamnagar, where he will see Reliance energy refinery and Vantara animal facility, was in order to discuss more Venezuelan oil being brought to refinery. "We've talked to them [Reliance Energy] about it in past. We're going to go see what holdup is and what opportunities exist. We'll see how conversation goes. This is company that has had presence in Venezuela in past and whose refining capabilities substantial," he added.
When asked about India's purchase of Russian oil that makes up about 45% to 50% of its intake, Rubio said he was happy to see India has made substantial progress on diversifying its oil purchases, adding U.S. and Venezuela can be source of more energy inputs India.
Read more - North Comes To India
Analytically, US offering Venezuelan crude is strategic - Venezuela has largest reserves but under sanctions, Reliance earlier processed Venezuelan heavy crude before 2019 sanctions. Now US wants India to replace Russian 45% share with Venezuelan plus US oil, even though US oil comes at $810 per tonne premium versus average $640. For India, diversification reduces concentration risk - two-thirds imports from just three nations - but Venezuelan supply chain still fragile and US sanctions waiver uncertain. Visit to Jamnagar, world's largest refinery, signals US wants private sector deal, not government.
Tags: #MarcoRubio #VenezuelaOil #Reliance #Jamnagar #RussianOil #IndiaUS #FTA #Jaishankar #EnergyDiversification #USIndiaTrade