• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 6 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 2 days Iran Captures British Tanker sailing through Straits of Hormuz
  • 6 hours Renewables provided only about 4% of total global energy needs in 2018
  • 1 hour Berkeley becomes first U.S. city to ban natural gas in new homes
  • 1 day EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 3 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 11 hours Shale Oil will it self destruct?
  • 3 days Today in Energy
  • 7 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 45 mins N.Y. Governor Signs Climate Bill
  • 25 mins First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 2 days Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 17 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 3 days LA Solar Power/Storage Contract
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Oil-for-Drugs Swap: India’s Answer to Venezuela’s Unpaid Bills

Venezuela can’t pay its millions of dollars in debt to Indian pharmaceutical companies, say Indian officials, so officials are considering a proposal that would see the Latin American company swap oil for its drug debts.

After an unlucky gamble on India’s part that Venezuela’s emerging economy would be a good place to hawk Indian pharmaceuticals, the debt is now mounting and poor crisis management coupled with the long-running oil price slump has left Venezuela too cash strapped to pay up.

Already, according to Indian media, India’s Dr Reddy’s pharmaceutical company has written off US$65 million in debt in the first quarter of this year, while Glenmark Pharmaceuticals Inc is looking to collect some US$45 million in unpaid debt from Venezuela. Related: What Does The Next OPEC Meeting Have In Store?

"The situation in Venezuela is very precarious ... the government knows it needs to do something about the medicine shortage, that's why it is willing to discuss such a deal," Reuters quoted an Indian official as saying.

Indian officials cited by local media have suggested that the oil-for-drugs proposal has come from the Trade Ministry, which envisions using the State Bank of India as a mediator in the swap.

“The finance ministry has assured us that the government is fully committed to it, but it will take time," India’s Economic Times quoted P.V. Appaji, Director General of the Pharmaceutical Export Promotion Council of India, a body under the country's commerce ministry, as saying. Related: Who Will Benefit From The Electrification Of Transport?

It’s not an unprecedented idea. India has swapped rice and wheat for Iranian oil when Iran was under sanctions.

For now, the deal proposal is embryonic, though Indian officials cited by local media claim that Venezuela is on board with the idea, while high-level meetings should take place this summer.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Asok Asus on May 20 2016 said:
    There’s actually plenty of hard currency from selling Venezuela’s oil, it’s just that Maduro doesn’t want to WASTE it on medication, or food or anything else for that matter, that his suffering population desperately needs for survival. And the Indians are so naive that they don’t understand that a direct oil for medicines swap totally defeats the purpose, namely, medicines can’t be secreted by Maduro, his family and his cronies in their offshore banking accounts.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play