Diplomatist Magazine Diplomatist March 2019 | Page 48

US:VENEZUELA
GREAT GAME ENDGAME
BY ERIC WALBERG*
T
he current standoff in Venezuela is a classic case of
the great game, the maneuvering of the great powers.
My writing uses the great game analogy in three parts,
three distinct phases during the past two centuries. First, the
classic great game between imperial rivals, then the great
game of imperialism vs the Soviet Union, and the post-Soviet
game – the US one-armed bandit against the world. (The US
is the only ‘great’ power at present, but we can suppose China
is becoming one). To use another comparison pertinent today,
it is like a reality game show.
India key player
The political turmoil in Venezuela has signifi cance for
India, which imports 11.4 percent of its crude oil from the
South American nation, its third largest supplier after Saudi
Arabia and Iraq. When US production of domestic shale oil
increased, it cut its oil imports from Venezuela by 49 percent,
providing an opportunity for India to step in.
These market-driven factors are the primary reason for
India’s increasing oil imports from Venezuela. They are
unlikely to change in the long or medium-term, regardless of
any change in government or policies in Venezuela. Venezuela
is still a signifi cant global oil player, with the world’s largest
proven reserves of oil – 299 billion barrels. Oil accounted
for 95 percent of the country’s exports in 2014.
ONGC Videsh, Indian Oil Corporation and Oil India have
invested in Venezuela’s Carabobo and San Cristobal oil fi elds,
where oil is already being produced and exported to India and
other markets. Reliance Industries has also signed a 15-year
contract with PDVSA, Venezuelan’s State Oil Company, to
import 400,000 barrels of oil per day.
Indian pharmaceutical companies are also present in
Venezuela. India’s contribution to the “Mission Barrio
Adentro” (Mission Inside the Neighbourhood) – launched
with Cuban help – has helped reduced infant mortality by
30 percent.
But due to the economic crisis (the US refuses to pay
for oil it imported, Britain refused to repatriate Venezuelan
gold worth $550m), Indian pharma, which exported more
than $140 million to Venezuela in 2014-15, has been unable
to repatriate funds from their Venezuelan subsidiaries for
about two years now. Indian pharma, which exported more
than $140 million to Venezuela in 2014-15, has been unable
to repatriate funds from their Venezuelan subsidiaries since
48 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 3 • March 2019, Noida