US encourages India to resume Venezuelan crude oil purchases as Russian imports fall

The United States has informed India that it may soon resume purchases of Venezuelan crude oil, positioning the supply as an alternative as New Delhi moves to sharply reduce its imports of Russian oil, as per the news reports.

This comes amid India’s pledge to slash its purchases of Russian crude after the US increased tariffs on those imports. Reports citing sources stated that India is on track to cut its intake of Russian oil by several hundred thousand barrels per day over the coming months, speaking on condition of anonymity due to the sensitivity of the talks.

In March 2025, President Donald Trump imposed a 25% tariff on countries that import Venezuelan oil, including India, and his administration intensified pressure on Venezuelan President Nicolás Maduro. US forces reportedly captured Maduro on January 3, and Washington has signalled a shift in approach by indicating that Indian refiners could resume Venezuelan purchases to help offset declining Russian supplies.

The move aligns with broader US efforts to curb revenues from Russian oil exports, which are viewed in Washington as helping to fund Moscow’s war in Ukraine.

It remains unclear whether the Venezuelan crude would be marketed through independent trading houses such as Vitol or Trafigura or sold directly by Venezuela’s state oil company, PDVSA, as per the reports.

India reportedly became a major buyer of Russian crude after the invasion of Ukraine in 2022 triggered Western sanctions and steep price discounts, making Moscow’s oil an attractive source for refiners. However, under tariff pressure from Washington, Indian imports of Russian crude have begun to decline.

Reports citing two sources said India is preparing to reduce Russian oil imports to below one million barrels per day (bpd) soon. Imports stood at around 1.2 million bpd in January and are projected to fall to about one million bpd in February and 800,000 bpd in March. Another source reportedly suggested volumes could eventually fall to about 500,000–600,000 bpd, a reduction that could support broader trade negotiations with the United States.

Data from trade sources show Russia’s share of India’s crude import basket fell to its lowest level in two years in December, while the proportion of oil from OPEC producers reached an 11-month high. Indian refiners have increased purchases from the Middle East, Africa and South America to compensate for the reduced Russian supply.