The United States has communicated to India that it may soon resume purchases of Venezuelan crude oil, signalling a renewed focus on diversifying India’s energy import sources as its dependence on Russian oil declines. This development comes amid broader efforts by Washington to reshape global oil flows and address trade tensions with New Delhi tied to energy sourcing.
According to sources cited by Reuters, the US outreach is linked to India’s ongoing cuts in Russian crude imports, which are expected to decline sharply over the next several months. Indian refiners imported approximately 1.2 million barrels per day (bpd) of Russian crude in January, a figure projected to fall to around 1 million bpd in February and further to about 800,000 bpd in March. Some estimates suggest imports could eventually drop to 500,000–600,000 bpd as part of India’s energy diversification strategy.
The shift away from Russian supplies is viewed in Washington as an opportunity to reintroduce Venezuelan crude into India’s import mix. The US has previously imposed tariffs on countries, including India, that buy Venezuelan oil, complicating trade flows due to sanctions and tariff pressures. However, recent diplomatic and policy shifts have opened the door for potential Venezuelan crude sales to Indian refiners under compliant frameworks.
India became a major buyer of Russian crude after the 2022 invasion of Ukraine led to Western sanctions and steep price discounts for Russian oil. While discounted Russian barrels helped India manage import costs and meet energy demand, ongoing geopolitical pressures from the US and allied nations have prompted New Delhi to explore alternative sources, including the Middle East, Africa and South America.
The US proposal reflects Washington’s broader aim to reduce Moscow’s oil revenues, which it says help fund Russia’s military operations in Ukraine. Encouraging India to resume Venezuelan crude purchases is part of this strategy, even as New Delhi continues to balance its energy security needs with complex international dynamics.
Diplomatic engagement between India and Venezuela has also increased recently. Venezuela’s interim president, Delcy Rodríguez, reportedly discussed energy cooperation with India’s Prime Minister Narendra Modi during a phone call. The South American nation has undertaken reforms to open its hydrocarbons sector to private investment, which could support future crude exports to global buyers if sanctions and regulatory frameworks permit.
Indian refiners are closely watching developments, with several companies indicating they may consider Venezuelan crude if regulatory clarity and compliant trade terms are established. Venezuelan crude is typically heavy and sour, and only a subset of Indian refineries have the configuration to process such grades efficiently. Nonetheless, renewed access could help reduce India’s overall reliance on Russian crude and align its energy imports with broader geopolitical and trade priorities.
As India continues to diversify its crude import portfolio, attention will remain on how sanctions, tariffs and international energy policies evolve, especially in the lead-up to global negotiations and bilateral discussions on trade and strategic cooperation.
