The United States has informed India that it could soon resume purchases of Venezuelan crude as an alternative to lessen its dependence on Russian oil imports, according to Reuters.
The decision is part of a wider U.S. strategy to steer India’s oil imports away from Russia while reshaping energy relations between the two nations.
Meanwhile, India is committed to slashing Russian crude imports in response to U.S. tariff hikes on Indian imports, and the nation is now set to cut volumes by several hundred thousand barrels per day over the coming months.
The U.S. push to offer Venezuelan oil to India comes against the backdrop of wider diplomatic engagement between New Delhi and Caracas. On Friday, Venezuela’s interim president, Delcy Rodríguez, said that India and Venezuela had agreed on energy cooperation during a phone call with Prime Minister Narendra Modi, a day after Venezuela opened its hydrocarbons sector to private firms.
Modi also wrote on X that the leaders had agreed to deepen and expand bilateral ties across various areas, aiming to elevate India‑Venezuela relations in the years ahead.
Venezuela, which holds the world’s largest oil reserves, recently amended its laws to allow private investment in the oil sector, marking a significant shift from decades of strict state control aimed at drawing foreign capital. In March 2025, President Donald Trump imposed 25% tariffs on countries importing Venezuelan oil, including India, as his administration stepped up its campaign against Venezuelan President Nicolás Maduro.
Since then, Washington has shifted its stance, urging New Delhi to resume Venezuelan oil purchases to help offset declining Russian supplies. India became a major buyer of Russian crude after the 2022 invasion of Ukraine prompted Western sanctions that drove prices down.
By August, U.S. tariffs on Indian goods had reached 50% after Washington imposed an additional 25% levy linked to Russian oil imports.
With mounting U.S. pressure and rising trade costs, India is moving to diversify its crude supply. Oil Minister Hardeep Singh Puri said last week, “India is diversifying its crude sources as Russian oil imports fall.”
According to Reuters, India is preparing to cut Russian oil imports to below one million barrels per day in the near future. Imports, which were around 1.2 million bpd in January, are expected to drop to roughly 1 million bpd in February and about 800,000 bpd in March.
Imports could eventually fall further to between 500,000 and 600,000 bpd, a move that may help India secure a trade deal with the United States.
Trade figures show that India’s Russian oil imports fell to a two-year low in December, while OPEC’s share of Indian imports rose to an 11-month high. To compensate, refiners have increased purchases from producers in the Middle East, Africa, and South America.
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