India Considers Purchasing Oil from Venezuela Over Russia Amid US Proposal to Address 25% Tariffs

The United States has signaled to India that it can soon resume importing Venezuelan oil, a strategic move aimed at reducing India’s dependence on Russian crude. This initiative is part of a broader effort by the U.S. to reshape energy ties with India while encouraging the country to cut back on Russian oil imports. Reports indicate that India is on track to significantly decrease its Russian crude purchases in the coming months, coinciding with a renewed focus on energy cooperation between India and Venezuela.

US Engagement with Venezuela

The U.S. decision to promote Venezuelan oil to India comes amid increasing diplomatic engagement between New Delhi and Caracas. Recently, Venezuela’s interim president, Delcy Rodríguez, announced an agreement with Indian Prime Minister Narendra Modi to enhance energy cooperation. This announcement followed Venezuela’s recent reforms that opened its hydrocarbons sector to private investment, marking a significant shift from decades of state control. The goal is to attract foreign capital and revitalize Venezuela’s struggling oil industry, which holds the world’s largest proven oil reserves. PM Modi expressed optimism about the future of India-Venezuela relations, stating that both nations aim to deepen their partnership across various sectors.

Impact of US Sanctions on Venezuelan Oil

The backdrop of U.S. sanctions has heavily influenced the dynamics of Venezuelan oil exports. In March 2025, former President Donald Trump imposed a 25% tariff on countries purchasing Venezuelan oil, including India, as part of a broader campaign against Venezuelan President Nicolás Maduro. Following the capture of Maduro by U.S. forces on January 3, Washington began to exert control over Venezuela’s oil industry. This context has complicated the landscape for countries looking to engage with Venezuelan oil, but the U.S. appears to be recalibrating its approach to facilitate India’s access to this resource.

India’s Shift Away from Russian Oil

India’s oil imports from Russia have been on a downward trajectory, particularly since the onset of the Ukraine conflict in 2022, which led to Western sanctions that lowered oil prices. As U.S. pressure mounts and trade costs rise, India is actively seeking to diversify its crude oil sources. Oil Minister Hardeep Singh Puri recently indicated that India is preparing to reduce its Russian oil imports to below one million barrels per day in the near future. Current estimates suggest that imports, which were around 1.2 million barrels per day in January, could drop to approximately 800,000 barrels per day by March. Some sources even predict a potential decline to between 500,000 and 600,000 barrels per day, which may facilitate a trade agreement with the United States.

The operational challenges posed by Western sanctions have prompted Indian refiners to seek alternative suppliers. Recent trade data revealed that India’s imports of Russian oil fell to their lowest level in two years in December, leading to an increase in OPEC’s share of Indian oil imports. Several Indian refiners, including state-run Hindustan Petroleum and Mangalore Refinery and Petrochemicals, have already ceased purchasing Russian crude, while others have significantly reduced their intake. This shift underscores India’s commitment to diversifying its energy sources in response to geopolitical pressures.

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