India and Ecuador Explore Expanded Trade in Crude Oil and Critical Minerals
India and Ecuador are exploring ways to strengthen their trade ties, with a focus on increasing the supply of crude oil, copper, and other critical minerals from Ecuador to India. Fernando Buchelli, the Ecuadorean ambassador to India, shared these plans in an interview with the Indian news outlet Mint. Ecuador intends to invite Indian companies to invest in its oil and minerals sector, while also seeking to purchase medical products from India's state-held healthcare manufacturer, HLL Lifecare Limited.
India, the world's third-largest crude oil importer, has been diversifying its energy sources to reduce dependence on China's critical minerals industry. Earlier this year, Indian Oil Corporation (IOC), the country's largest state-owned refiner, made its first-ever crude oil purchase from Ecuador as part of efforts to replace some Russian crude deliveries affected by U.S. sanctions on Rosneft and Lukoil.
Since supply disruptions in the Middle East, Indian refiners have turned to South American countries, including Brazil, Venezuela, and Ecuador, to offset the loss of crude oil from the Persian Gulf. Ecuador's current offer presents an opportunity for Indian companies to invest in securing a stable supply of crude oil and copper.
In addition to Ecuador, India has been collaborating with Argentina to strengthen cooperation in lithium mining. Last year, India and Argentina signed a memorandum of understanding (MoU) to enhance ties in the critical minerals sector, aiming to accelerate lithium exploration projects and create new opportunities for Indian companies in Latin America.