New Delhi: The United States has granted India permission to purchase crude oil from Venezuela, a move aimed at reshaping global oil trade amid shifting supply dynamics. The development comes as India has pledged to significantly reduce its oil imports from Russia, according to three sources who spoke to Reuters on the condition of anonymity due to the sensitivity of the matter.
The US intends for India to replace Russian oil imports with Venezuelan crude. This decision follows India’s commitment to cut back on its Russian oil purchases. Previously, the US had imposed tariffs on Indian imports of Russian oil. Over the coming months, India is expected to reduce its daily oil imports from Russia by several hundred thousand barrels, sources indicated.
Trump’s New Oil Strategy
Former US President Donald Trump had, in March 2025, imposed a 25% tariff on countries, including India, importing oil from Venezuela. Subsequently, his administration escalated campaigns against Venezuelan President Nicolás Maduro, who was detained by US forces on January 3. Since then, Washington has changed its stance and informed India that it can resume buying Venezuelan oil.
This initiative is designed to help India compensate for the declining supply of Russian crude while simultaneously curbing Russia’s oil revenues, which fund its ongoing war in Ukraine.
Understanding the Oil Game
After Russia’s invasion of Ukraine in 2022, Western nations imposed sanctions that led to steep discounts on Russian oil. India emerged as a major buyer during this period. However, the Trump administration raised tariffs on Indian goods, with the additional 25% tariff linked to Russian oil imports reaching as high as 50% by August.
By encouraging India to source oil from Venezuela, the US aims to strategically reduce Russia’s energy income while stabilizing India’s energy security.
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