The United States has proposed that India consider importing crude oil from Venezuela as New Delhi gradually reduces its dependence on Russian oil, according to sources aware of the discussions. The move comes at a time when India is recalibrating its energy strategy amid global geopolitical shifts and growing trade pressures from Washington.
India emerged as one of the largest buyers of Russian crude after the Ukraine conflict began in 2022, taking advantage of discounted prices. At its peak, India was importing around 1.2 million barrels per day (bpd) of Russian oil. However, this volume is now declining. Imports are estimated to fall to about 1 million bpd in February and further to nearly 800,000 bpd by March 2026. Officials indicate that Russian supplies could eventually drop to nearly half of earlier levels.
The US outreach is closely linked to trade and tariff issues. In 2025, Washington imposed a 25% tariff on countries purchasing Venezuelan oil, a measure that also affected India. In addition, the overall tariff burden on Indian exports to the US has increased, with Russian oil imports cited as one of the contributing factors. By encouraging India to shift toward Venezuelan crude, the US is seeking to realign energy flows while easing trade frictions.
Washington’s stance on Venezuela has also evolved. Following political developments in Caracas earlier this year, the US indicated that countries like India could re-engage with Venezuelan oil supplies. The proposal is also seen as part of a broader U.S. effort to curb Russia’s oil revenues, which it says help fund Moscow’s military actions.
It remains unclear whether Venezuelan oil would be supplied directly by state-run PDVSA or routed through global trading firms. Meanwhile, Indian refiners have already begun widening their sourcing base. As Russian imports decline, India has stepped up purchases from the Middle East, Africa and parts of South America. Recent data show Russian oil shipments to India touching a two-year low, while the share of OPEC crude in India’s import mix has risen to its highest level in nearly a year.
India’s petroleum ministry has reiterated that the country’s priority is energy security through diversification. While no formal decision has been announced on Venezuelan crude, the US pitch highlights how energy, trade and geopolitics are becoming increasingly intertwined as India reshapes its oil procurement strategy.
