New Delhi: Not just oil, Venezuela holds substantial reserves of nickel, iron ore, bauxite, coal and gold, and is increasingly prioritising lithium, nickel and rare earth elements as strategic resources, a report said on Wednesday, adding that for India, deeper investment partnerships in these areas could support long-term supply security for minerals essential to batteries, electric vehicles and clean-energy technologies.
In November 2025, the Venezuelan Government conveyed its interest in attracting greater Indian investment and technical collaboration in mineral exploration and processing, signalling a potential shift in the bilateral investment agenda.
“However, given the prevailing uncertaines, the trajectory of Indian investment will depend significantly on the direction and consistency of US policy towards Venezuela, particularly with respect to sanctions enforcement and regulatory approvals,” said Rubix Data Science’s latest report.
While India’s direct trade with Venezuela has weakened over due to sanctions, payment risks, and operational constraints, Indian firms continue to retain legacy investment exposure, led primarily by the oil and gas sector.
Venezuelan crude, once a steady top-six pillar with a 6.7 per cent share in FY2018, has receded to around 0.3 per cent during FY2026 (April–October 2025), with shipments turning sporadic despite Indian refiners being equipped to process heavy, high-Sulphur grades.
A short-lived revival following partial easing of US sanctions in FY2024–FY2025 offered brief relief, but elevated compliance, payment, and logistical risks continue to limit flows, said the report.
Amidst the recent US Venezuela crisis, the larger task ahead is managing geopolitical dependence in crude corridors while safeguarding overseas balance-sheet interests.
Despite weak trade flows, Indian firms retain balance-sheet presence in Venezuelan hydrocarbons — led by ONGC Videsh and Indian Oil with equity participation in Carabobo heavy-oil projects, alongside limited footprints of Reliance, Nayara and MRPL.
Any policy shift could directly impact these assets, said the report.
“The case illustrates India’s increasing pivot toward lower-risk suppliers and rupee-settlement friendly routes, reducing dependence on sanctioned regimes even when crude is attractively priced,” the report mentioned.
(IANS)
