The United States has informed India about the potential for resuming crude oil purchases from Venezuela. This development coincides with New Delhi’s ongoing efforts to reduce its reliance on Russian oil imports. The initiative was reported by Reuters, citing three sources familiar with the matter.
Shifting Oil Import Dynamics
India’s decision to curtail its Russian crude oil purchases is a direct consequence of increased tariffs imposed by Washington. This strategic move is anticipated to significantly reduce India’s daily Russian oil imports over the next few months. The shift is also viewed as an attempt to diminish Russia’s oil revenues, which are reportedly used to fund its military actions in Ukraine.
Venezuela’s Role and Tariffs
The U.S. has signaled a change in its stance, informing New Delhi that Venezuelan oil could help compensate for the declining supply from Russia. Previously, in March 2025, Donald Trump had imposed a 25% tariff on countries, including India, purchasing oil from Venezuela. India had become a primary buyer of Russian oil following Western sanctions and substantial discounts implemented after the 2022 Ukraine conflict. Subsequently, Trump increased tariffs on Indian products, adding an extra 25% for Russian oil purchases, bringing the total to 50%. Specific details regarding whether Venezuelan oil will be sold by external trading houses like Vitol or Trafigura, or directly by Venezuela’s state oil company PDVSA, have not yet been confirmed.
Sources cited by Reuters indicate that India is preparing to reduce its Russian oil imports to below one million barrels per day (bpd) in the near future. January imports were approximately 1.2 million bpd, with projections estimating a decrease to about 1 million bpd in February and 0.8 million bpd in March.
