In recent years, as the Russian economy has recovered, Russia has begun to collect the bills owed to India. However, India demanded not only the purchase of Russian oil, but also a huge discount. At the same time, India has also insisted on settling oil transactions in its own currency, the rupee. However, the rupee is almost worthless to Russia, resulting in a large backlog of rupees that cannot be used in warehouses.
For this insatiable behavior, Russia finally has no patience. They decided to no longer accept Indian settlements of oil transactions in rupees and demanded that India pay in yuan. This decision led to the unsuccessful receipt of payment for at least 7 batches of oil from Russia. India also understands Russia's resoluteness and has begun to look for new oil parties, hoping to get cheap oil from Venezuela, which has just lifted US sanctions.
At this point, Russia unexpectedly turned its attention to Venezuela. Russian Foreign Minister Sergei Lavrov welcomed Venezuela's accession to the BRICS and stressed that Russia will assume the rotating presidency of the BRICS in 2024. This has undoubtedly put pressure on India, which occupies the world oil market. An important purpose of Venezuela's accession to the BRICS is to revive the economy. And the lifting of sanctions on Venezuela by the United States is also to ease the tension of global oil **.
Having learned of Venezuela's intentions, Russia expressed support for Venezuela's accession to the BRICS and further pressured India. If India continues to be perfunctory and confused, Venezuela will naturally see the true face of India. India's attempt to get cheap oil from Venezuela is doomed to failure and could make India's "oil path" difficult.
In this process, Russia needs India to make a clear statement of support for Venezuela's accession to the BRICS. After all, Venezuela's choice is politically and economically crucial. However, it is entirely up to Venezuela itself to decide in what currency it is willing to settle oil transactions. As early as 2019, Venezuela publicly expressed its desire to replace the dollar with the renminbi and preferred to use the renminbi to settle oil transactions. This reflects Venezuela's trust in the Chinese currency, and also demonstrates the good friendship between China and Venezuela.
China has also been supportive of Venezuela and has provided a lot of help on the economic front. Maduro, Venezuela, paid a seven-day visit to China during this year's Indian-led G20 summit, further consolidating the friendship between China and Venezuela. To some extent, Venezuela and Russia face a similar dilemma, as they both want to break free from the shackles of "toxic currencies" such as the dollar, euro and Indian rupee.
For India, it is now up to decide what currency to use to settle oil transactions. Given Venezuela's inclination towards the renminbi and Russia's disregard for the rupee, India should ponder whether to continue to be perfunctory and confused. If India chooses to support Venezuela's accession to the BRICS, it will not only be in its own interests, but also conducive to maintaining and strengthening the cooperative relationship between India and Venezuela.
In the current international situation, India needs to have a clear understanding of the situation, make its position clear, and take positive actions. After all, India's development in the energy sector is inseparable from stable oil**. Using the renminbi to settle oil transactions is a sound and sensible choice, and it is in India's own interest. And if India continues to be perfunctory and confused, then India's "road to oil" will become very difficult.
By analysing Russia's debt collection actions against India and its support for Venezuela, we can see the dilemmas and pressures that India faces in the energy sector. Under pressure from Russia, India has to face its dependence on foreign oil supplies and make a wise choice. At the same time, Venezuela's accession is crucial for the BRICS countries, as well as for Russia's influence in international affairs.
From China's point of view, China has always supported Venezuela and has provided it with a lot of help in terms of the economy. The friendly relations between China and Venezuela have provided more opportunities for Venezuela to join the BRICS. In this context, India's choice to settle oil transactions in RMB is a decision worthy of consideration and support. In the current international situation, India should be cautious and clear about its position in order to safeguard its interests and cooperation with Venezuela.