The United States has told India that it may soon resume purchases of Venezuelan crude to reduce its dependence on Russia, according to a report by Reuters.
The move follows India’s pledge to cut Russian oil imports after Washington imposed higher tariffs linked to such purchases. Sources cited by Reuters said New Delhi is now preparing to reduce Russian crude imports by several hundred thousand barrels per day in the coming months.
The US proposal to promote oil from Venezuela comes amid renewed diplomatic engagement between New Delhi and Caracas. Venezuela’s interim president, Delcy Rodriguez, said she had agreed on energy cooperation with Indian Prime Minister Narendra Modi during a recent telephone call, following Caracas’ decision to open its hydrocarbons sector to private companies.
In a post on X, Modi said both sides had agreed to deepen bilateral ties and work toward expanding cooperation in multiple areas.
Venezuela, which holds the world’s largest proven oil reserves, recently introduced legal reforms to attract private investment, marking a major shift from decades of state control aimed at reviving its struggling oil industry.
US Sanctions and Venezuelan Oil
In March 2025, US President Donald Trump imposed 25 per cent tariffs on countries purchasing Venezuelan oil, including India, as part of efforts to pressure the government of President Nicolas Maduro.
After Maduro’s capture in January, Washington announced plans to exert long-term control over Venezuela’s oil sector and began directing policy from Caracas.
India’s Declining Russian Imports
India emerged as a major buyer of Russian oil after Moscow’s invasion of Ukraine in 2022 led to Western sanctions and discounted prices. However, rising trade costs and mounting US pressure have pushed India to diversify its crude supply.
Oil Minister Hardeep Singh Puri recently said India is expanding its pool of suppliers as Russian imports decline.
Sources said India is preparing to cut Russian imports below one million barrels per day (bpd). Imports stood at around 1.2 million bpd in January and are expected to fall to about 1 million bpd in February and nearly 800,000 bpd in March. In the longer term, volumes could drop to 500,000–600,000 bpd, supporting India’s efforts to secure a broader trade deal with Washington.
US tariffs on Indian goods rose to 50 per cent in August after an additional 25 per cent levy was imposed over Russian oil purchases. Operational hurdles linked to sanctions have also encouraged refiners to seek alternative suppliers.
Trade data showed Russian imports fell to a two-year low in December, pushing the share of the OPEC in India’s imports to an 11-month high.
Refiners Shift Away from Russian Crude
Several Indian refiners have already scaled back or halted purchases of Russian oil. State-run Hindustan Petroleum and Mangalore Refinery and Petrochemicals, along with private refiner HPCL-Mittal Energy, have stopped buying Russian crude.
Other state firms, including Indian Oil Corp and Bharat Petroleum Corp, have slowed purchases, officials said at the India Energy Week conference.
Meanwhile, a private operator of the world’s largest refining complex plans to import up to 150,000 bpd of Russian oil from February, according to industry sources.
Broader Strategic Goals
Washington’s push to channel Venezuelan crude to India also aligns with its broader objective of cutting Russian oil revenues that help fund the war in Ukraine.
Reuters sources said it remains unclear whether Venezuelan oil would be supplied through trading houses such as Vitol or Trafigura, or directly by Venezuela’s state oil firm PDVSA.
