India Declines To Buy Venezualan Oil Using Petro Cryptocurrency

News | June 1, 2018 By:

India has no plans to use Venezuela’s controversial Petro cryptocurrency to pay for crude oil imports from the South American nation.

In March of this year, it was reported that Venezuela offered India a 30 percent discount on crude oil if the government paid in Petro. On Monday, however, Indian Foreign Minister Sushma Swaraj stated that India has no plans to use the controversial cryptocurrency in purchasing oil, citing an order issued by India’s Central Bank, which prohibits trade involving cryptocurrency.

“We cannot have any trade in cryptocurrency, as it is banned by the Reserve Bank of India,” Swaraj said. “We will see which medium we can use for trade.”

In April of this year, the Reserve Bank of India (RBI) ordered banks to refrain from providing any services to individuals or business entities dealing with or settling cryptocurrencies. The RBI said they did this to protect investors.

The Indian Foreign Minister said they will continue to do business with both Iran and Venezuela and isn’t fussed about US sanctions facing both nations.

“India follows only UN sanctions, and not unilateral sanctions by any country,” she said. “We don’t make our foreign policy under pressure from other countries.”

Venezuela first announced the Petro cryptocurrency in December and began pre-selling a couple of months later, in a bid to battle US-imposed sanctions. Although the cryptocurrency has reportedly been supported by over 120 countries, it has come under a storm of criticism, with Venezuela’s opposition-run congress billing the “unconstitutional” Petro “a fraud.”