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Venezuela to export $2bn worth of oil to US in deal with Washington

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Venezuela to export bn worth of oil to US in deal with Washington


An oil pump jack is seen in an oil field near Lake Maracaibo, in Cabimas, Venezuela on October 14, 2022. — Reuters
An oil pump jack is seen in an oil field near Lake Maracaibo, in Cabimas, Venezuela on October 14, 2022. — Reuters
  • Trump says agreed volume to supply is 30-50 million barrels.
  • Exports expected to stem further cuts to Venezuelan output.
  • US interior secretary says US Gulf refiners would take advantage.

HOUSTON/WASHINGTON: Caracas and Washington have reached a deal to export up to $2 billion worth of Venezuelan crude to the United States, US President Donald Trump said on Tuesday, a flagship negotiation that would divert supplies from China while helping Venezuela avoid deeper oil production cuts.

The agreement is a strong sign that the Venezuelan government is responding to Trump’s demand that they open up to US oil companies or risk more military intervention. Trump has said he wants interim President Delcy Rodriguez to give the US and private companies “total access” to Venezuela’s oil industry.

Venezuela has millions of barrels of oil loaded on tankers and in storage tanks that it has been unable to ship due to a blockade on exports imposed by Trump since mid-December.

The blockade was part of rising US pressure on the government of Venezuelan President Nicolas Maduro that culminated in US forces capturing him this weekend. Top Venezuelan officials have called Maduro’s capture a kidnapping and accused the US of trying to steal the country’s vast oil reserves.

Venezuela will be “turning over” between 30 and 50 million barrels of “sanctioned oil” to the US, Trump said in a social media post.

“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!,” he added.

US Energy Secretary Chris Wright is in charge of executing the deal, Trump said, adding that the oil will be taken from ships and sent directly to US ports.

Supplying the trapped crude to the US could initially require reallocating cargoes originally bound for China, two sources had told Reuters earlier on Tuesday. The Asian country has been Venezuela’s top buyer in the last decade, and especially since the United States imposed sanctions on companies involved in oil trade with Venezuela in 2020.

“Trump wants this to happen early so he can say it is a big win,” an oil industry source said.

Venezuelan government officials and PDVSA did not provide comment.

Chevron in control of Venezuelan oil flows to US

US crude prices fell more than 1.5% after Trump’s announcement, with the agreement expected to increase the volume of Venezuelan oil exported to the US.

That flow of oil is currently controlled entirely by Chevron, PDVSA’s main joint venture partner, under a US authorisation.

Chevron, which has been exporting between 100,000 and 150,000 barrels per day (bpd) of Venezuelan oil to the US, is the only company that has been loading and shipping crude without interruption from the South American country in recent weeks under the blockade.

Crude oil drips from a valve at an oil well operated by Venezuelas state oil company PDVSA, in the oil rich Orinoco belt, near Morichal at the state of Monagas on April 16, 2015. — Reuters
Crude oil drips from a valve at an oil well operated by Venezuela’s state oil company PDVSA, in the oil rich Orinoco belt, near Morichal at the state of Monagas on April 16, 2015. — Reuters

It was not immediately clear if Venezuela would have any access to proceeds from the supply. Sanctions mean PDVSA is excluded from the global financial system, its bank accounts are frozen, and it is blocked from executing transactions in US dollars.

Venezuela has been selling its flagship crude grade, Merey, at around $22 per barrel below Brent for delivery at Venezuelan ports, giving a value for the deal at up to $1.9 billion.

Rodriguez, sworn in as interim president on Monday, is herself under US sanctions imposed in 2018 for undermining democracy.

Talks involve possible auctions with US buyers

Venezuelan and US officials this week discussed possible sales mechanisms, including auctions to allow interested US buyers to bid for cargoes, and issuing US licenses to PDVSA’s business partners that could lead to supply contracts, two sources told Reuters.

Those licenses have in the past allowed PDVSA’s joint venture partners and customers, including Chevron, India’s Reliance, China National Petroleum Corporation (CNPC), and European Eni and Repsol, to have access to Venezuelan oil to refine or to resell to third parties.

This week, some of those companies have begun making preparations for receiving Venezuelan cargoes again, two separate sources said.

The US and Venezuela have also discussed whether Venezuelan oil can be used in the US Strategic Petroleum Reserve in the future, one of the sources said. Trump did not refer to this possibility.

Increased oil flows would be ‘great news’

US Interior Secretary Doug Burgum said on Tuesday that an increased flow of Venezuelan heavy oil to the US Gulf would be “great news” for job security, future gasoline prices in the US and for Venezuela.

“Venezuela has an opportunity now to actually have capital come in and rebuild their economy and take advantage,” he told Fox News, when asked about talks between the governments on oil exports. “With American technology, American partnership, Venezuela can be transformed.”

US refineries on the Gulf Coast can process Venezuela’s heavy crude grades and were importing some 500,000 barrels per day (bpd) before Washington first imposed energy sanctions on Venezuela.

PDVSA has already had to cut production due to the embargo, because it is running out of storage for the oil. Without a way to export oil soon, it would have to cut production more, one of the sources said.

Oil traders reacted to news of the deal talks on Tuesday. Differentials for some heavy oil grades in the US Gulf slipped around 50 cents per barrel on Tuesday on the prospect of more Venezuelan supplies.





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India let Iran warship dock the day US sank another off Sri Lanka, say officials

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India let Iran warship dock the day US sank another off Sri Lanka, say officials


The Iranian military ship IRIS Lavan is docked at a port in Kochi, India, March 7, 2026. — Reuters
The Iranian military ship IRIS Lavan is docked at a port in Kochi, India, March 7, 2026. — Reuters

India has allowed an Iranian warship to dock as a humanitarian gesture, Foreign Minister Subrahmanyam Jaishankar said on Saturday, after the US sank another Iranian navy vessel off neighbouring Sri Lanka.

The Lavan docked at India’s southern port of Kochi on Wednesday, the same day the US submarine struck Iranian navy frigate Dena, after an urgent request from Tehran, an Indian government source told Reuters.

US President Donald Trump has said destroying the Iranian navy is one aim of the war he and Israel launched against the Islamic Republic a week ago.

The Lavan – an amphibious landing vessel, according to the US Naval Institute’s online news site – and two other ships “were coming in for a fleet review and then they got, in a way, caught on the wrong side of the events,” Jaishankar told the annual Raisina Dialogue event.

“I think we really approached it from the point of view of humanity, of other than whatever the legal issues were,” he said. “I think we did the right thing.”

At least 87 people were killed in the US attack on the Dena in Sri Lanka’s exclusive economic zone, 19 nautical miles off the coast, outside its maritime boundaries.

India received the docking request for the Lavan on February 28, the day the Iran war started, the source said late on Friday, adding that the request “was urgent as the vessel had developed technical issues”.

Its 183 crew members have been accommodated at naval facilities in Kochi, said the source, who asked not to be identified citing confidentiality.

The Dena was on its way back from a naval exercise organised by India, according to the drill’s website and Sri Lankan officials.

Sri Lankan authorities said on Friday that they were escorting the Iranian naval ship Booshehr to a harbour on the eastern coast and moving most of its crew to a navy camp near Colombo.





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Nepal’s rapper-mayor Balendra Shah poised to become prime minister

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Nepal’s rapper-mayor Balendra Shah poised to become prime minister


Balendra Shah, a rapper-turned-politician and the prime ministerial candidate for the Rastriya Swatantra Party (RSP), rings a bell, which is the partys symbol, as he takes part in an election campaign in Kirtipur, Kathmandu, Nepal, February 28, 2026. — Reuters
Balendra Shah, a rapper-turned-politician and the prime ministerial candidate for the Rastriya Swatantra Party (RSP), rings a bell, which is the party’s symbol, as he takes part in an election campaign in Kirtipur, Kathmandu, Nepal, February 28, 2026. — Reuters 
  • Shah’s popularity driven by social media and youth connection.
  • RSP party’s manifesto promises job creation and economic growth.
  • Final results covering 165 seats decided by direct vote expected within days.

After Nepal’s historic youth-led uprising last September killed 77 people and forced then-Prime Minister KP Sharma Oli to resign, a 35-year-old rapper-turned-politician posted a typically terse message to millions of followers on social media.

“Dear Gen Z, the resignation of your killer has come,” Balendra Shah — popularly known only as Balen — wrote. “Now your generation will have to lead the country. Be prepared.”

Five months on, the musician who cut his political teeth in 2022 when he became the mayor of the capital Kathmandu, is poised to become Nepal’s next prime minister following the country’s first election since the September uprising.

Shah’s Rastriya Swatantra Party (RSP) was leading in around 100 seats, far ahead of its main rivals, early counting trends from the election commission showed on Friday.

Final results, covering 165 seats decided by direct vote and 110 through proportional representation, are expected within days.

The Nepali Congress, currently in second place, has already conceded defeat, and analysts said the RSP’s dominant showing means it will likely form the next government.

“Balen Shah is so popular that now buses coming to Kathmandu have stickers on them saying, ‘Headed to Balen’s city'”, said Bipin Adhikari, a constitutional law expert who teaches at Kathmandu University.

If Shah is able to take power, it would cap a dramatic rise for a man who entered the public spotlight with rap music critical of the establishment and parleyed his popularity to ascend to high political office.

Balendra Shah, former mayor of Kathmandu popularly known as Balen, who according to party officials, will become prime minister under an internal agreement if the Rastriya Swatantra Party (RSP) wins the March 5 elections, plays a damru percussion instrument during an election campaign in Janakpur, Nepal on January 19, 2026. — Reuters
Balendra Shah, former mayor of Kathmandu popularly known as “Balen”, who according to party officials, will become prime minister under an internal agreement if the Rastriya Swatantra Party (RSP) wins the March 5 elections, plays a “damru” percussion instrument during an election campaign in Janakpur, Nepal on January 19, 2026. — Reuters 

It would also potentially reshape the politics of Nepal, a small Himalayan nation wedged between China and India, that has long been dominated by a handful of established parties.

‘Not a cakewalk’

Some of Shah’s nationwide appeal is driven by the work he has done as the mayor of Kathmandu, where he focused on improving the urban infrastructure, such as waste management, and ensuring the delivery of services like healthcare.

He has also faced criticism, including from Human Rights Watch, for allegedly using police to seize the properties of street vendors and landless people.

Shah — who resigned as mayor in January to contest the general election — did not respond to requests for an interview and questions from Reuters sent via email.

Unlike much of Nepal’s political elite comprising veterans from older generations, Shah has made it a habit to largely shun the mainstream press.

Instead, it is his prolific social media presence, with over 3.5 million followers on platforms like Facebook, that enables him to connect directly with young Nepalis.

“What makes Balen special is that he stays connected with the youth through his short messages on social media, but it would not be a cakewalk for him after becoming prime minister,” said independent political analyst Puranjan Acharya.

‘Let me speak’

Born to a father who practiced traditional Ayurvedic medicine and a homemaker mother, Shah showed an early inclination towards poetry that evolved into a love of rap music, influenced by American artists including Tupac Shakur and Curtis “50 Cent” Jackson, according to an aide.

Balendra Shah, former mayor of Kathmandu popularly known as Balen, who according to party officials, will become prime minister under an internal agreement if the Rastriya Swatantra Party (RSP) wins the March 5 elections, shakes hand with Rabi Lamichhane, president of Rastriya Swatantra Party (RSP) during an election campaign in Janakpur, Nepal, January 19, 2026. — Reuters
Balendra Shah, former mayor of Kathmandu popularly known as “Balen”, who according to party officials, will become prime minister under an internal agreement if the Rastriya Swatantra Party (RSP) wins the March 5 elections, shakes hand with Rabi Lamichhane, president of Rastriya Swatantra Party (RSP) during an election campaign in Janakpur, Nepal, January 19, 2026. — Reuters 

After securing an undergraduate degree in civil engineering in Nepal, Shah went on to study for a master’s degree in structural engineering in southern India  — by which time he had already emerged as a rap star in his home country.

His songs, often taking on Nepal’s ruling class, struck a chord with many in a country where about 20% of the 30 million population live in grinding poverty.

Released in 2019, one of Shah’s best-known songs, “Balidan” — or sacrifice in the Nepali language — has over 12 million views on YouTube.

Its lyrics read:

“Let me speak, sir, it is not a crime,

Let me open the mind, I am not a curse to the palace,

My mind is not bad, it is not afraid to speak the truth.”

‘Wood attacked by termites’

Last December, Shah joined the RSP, led by former TV host-turned-politician Rabi Lamichhane, as its prime ministerial candidate.

Balendra Shah, a rapper-turned-politician and the prime ministerial candidate for Rastriya Swatantra Party (RSP), looks on as he queues to vote during the general election in Kathmandu, Nepal, March 5, 2026. — Reuters
Balendra Shah, a rapper-turned-politician and the prime ministerial candidate for Rastriya Swatantra Party (RSP), looks on as he queues to vote during the general election in Kathmandu, Nepal, March 5, 2026. — Reuters 

In its manifesto, Shah’s RSP has vowed to create 1.2 million jobs and reduce forced migration, in an effort to tap into frustration over unemployment and low wages that have pushed millions of Nepalis to search for work overseas.

The party has also pledged to raise Nepal’s per capita income from $1,447 to $3,000, more than double the nation’s economy to $100 billion GDP and provide safety nets such as healthcare insurance for the entire population — all within five years.

At the national level, analysts foresee that if he is elected, much of Shah’s success will depend on the talent he surrounds himself with to overhaul a moribund administrative system, riven by corruption.

“It needs a team, experts and support,” Acharya said, “Under the existing state apparatus, he can’t perform and he will be finished like wood attacked by termites.”





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India under fire after US says it ‘allowed’ Russian oil purchases

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India under fire after US says it ‘allowed’ Russian oil purchases


Indias External Affairs Minister S Jaishankar with US Treasury Secretary Scott Bessent in Washington, DC, US, February 4, 2026. — X/@DrSJaishankar
India’s External Affairs Minister S Jaishankar with US Treasury Secretary Scott Bessent in Washington, DC, US, February 4, 2026. — X/@DrSJaishankar
  • US grants India 30-day Russian oil waiver.
  • Congress says Washington dictates India’s oil choices.
  • Tamil Nadu CM questions India seeking foreign approval.

KARACHI: India’s Narendra Modi-led government has come under renewed criticism from opposition parties and sections of the public after the United States said it had temporarily allowed Indian refiners to buy Russian oil stranded at sea, The News reported.

The criticism centres on a statement by US Treasury Secretary Scott Bessent, who said in a post on X early Friday that the Treasury Department was issuing a 30-day waiver to allow Indian refiners to purchase Russian oil in order to keep oil flowing into the global market.

Opposition parties argued that the move made India appear dependent on Washington’s approval. In a post on X, the Congress party said the Modi government had led the country “to a situation where the United States is now deciding where India can buy oil from and where it cannot”.

The waiver, which the US Treasury Secretary Scott Bessent said was issued to “enable oil to keep flowing into the global market,” comes under heightened tensions in the Middle East following the US-Israeli attack on Iran, sparking uncertainty around oil.

It should be noted that India had earlier said it would stop purchasing Russian oil as part of a trade deal with the US.

MK Stalin, chief minister of the southern state of Tamil Nadu, questioned why India should appear to seek approval from any foreign government to meet its energy needs. 

“Equally troubling is the sinking of the unarmed Iranian warship IRIS Dena by the United States soon after it participated in the International Fleet Review 2026 naval exercise hosted by India in Visakhapatnam. When a ship that came to India as part of a multinational exercise meets such a fate, India cannot appear silent or passive,” he added. 

Bessent further added, “This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea. India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage.”

Journalist Rana Ayyub added with America’s permission, “we now sound like an American colony”.

India was the top buyer of Russian seaborne crude after Moscow’s 2022 Ukraine invasion, but in January its refiners started to reduce purchases under pressure from Washington. Cutting Russian oil purchases helped New Delhi avoid 25 per cent tariffs and clinch an interim trade deal with the US.

India is vulnerable to energy supply shocks, with crude stocks covering only about 25 days of demand. India receives about 40% of its oil imports from the Middle East through the Strait of Hormuz. 

According to The Guardian, which quoted Reuters, a source directly involved with the matter said India had approached Trump’s administration seeking approval to buy Russian crude imports because of the Iran conflict.





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