US President Donald Trump has announced that India will begin buying oil from Venezuela, marking a potential shift in global energy alignments as New Delhi reduces its reliance on Russian crude.
Speaking aboard Air Force One, Trump said the concept of a deal to channel Venezuelan oil to India has already been agreed, and China is also invited to negotiate similar arrangements. This declaration signals a major change in oil trade dynamics amid evolving US energy policy and sanctions strategies.
The backdrop to this development stems from US efforts to revive Venezuelan oil production and redirect its exports after a period of sanctions and limited output. Venezuela holds some of the world’s largest proven oil reserves, and US moves to ease access — including reopening commercial airspace and planning diplomatic ties — reflect Washington’s intent to strengthen energy ties with other nations and reduce revenue flows to geopolitically unfriendly states.
The United States had previously imposed a 25 per cent tariff on countries, including India, that import Venezuelan oil, as part of a broader strategy to pressure Venezuelan President Nicolás Maduro.
However, following political shifts and US involvement in Caracas’s oil sector, Washington has softened its stance and now actively pitches Venezuelan crude to partners like India to help replace declining Russian oil purchases.
India has been one of the world’s largest buyers of Russian crude since Western sanctions on Moscow were imposed after Russia’s invasion of Ukraine in 2022. However, under sustained US pressure — including tariffs on Indian exports linked to its energy purchases — India is reportedly cutting back on Russian crude, with imports expected to fall sharply in early 2026.
The US pitch to India to resume Venezuelan oil buying is not just an energy proposal but a strategic geopolitical maneuver. Washington intends to reduce Russia’s oil revenues, which help fund its war efforts, while also transitioning India toward energy sources more aligned with US interests. The offer comes as Venezuela’s oil industry opens up to private investment after decades of state control — a reform aimed at attracting capital and reviving production.
For India, diversifying crude sources could help mitigate risks associated with overreliance on Russian oil, even though logistical and refining considerations remain, as Venezuelan crude tends to be heavier and more challenging to process for some Indian refineries. This shift could also affect India’s energy security strategy, balancing affordability, geopolitical pressures, and diplomatic ties with major powers.
The broader context also includes US–India trade tensions, with Trump’s administration deploying tariffs as leverage in negotiations and pushing for changes in New Delhi’s energy import portfolio. As these dynamics unfold, the potential for India to increase Venezuelan oil imports could reshape global oil flows and influence diplomatic relations between major energy consumers and suppliers.
(With inputs from agencies)
