The Trump administration has reportedly informed India that it will permit crude oil imports from Venezuela as a substitute for Russian supplies, marking a significant development in bilateral energy ties, according to multiple sources. The move follows Washington’s decision last year to impose higher tariffs on India over its continued purchases of Russian and Venezuelan oil, prompting New Delhi to reassess its crude sourcing strategy.
The United States had raised tariffs on Indian goods by up to 50 percent citing India’s imports of Russian crude, after which India indicated it would scale back purchases from Moscow. Sources said India is expected to cut Russian oil imports by several hundred thousand barrels per day in the coming months. Earlier, the Trump administration had also imposed 25 percent duties on countries importing Venezuelan oil and intensified pressure on Venezuelan President Nicolás Maduro.
Washington is now seeking to redirect Venezuelan crude exports while simultaneously aiming to weaken Russia’s energy revenues, which are seen as supporting Moscow’s war effort in Ukraine. Allowing India to replace Russian oil with Venezuelan supplies is viewed as part of a broader US strategy to curb Russia’s economic strength through reduced crude revenues.
Following Western sanctions after the outbreak of the Russia–Ukraine war in 2022, Moscow offered crude at discounted rates, making India its largest buyer. However, Petroleum Minister Hardeep Singh Puri recently said India is actively exploring alternative suppliers as Russian imports begin to decline.
According to Reuters, India imported about 1.2 million barrels per day of Russian oil in January, which is expected to fall to around 1 million barrels per day in February and 800,000 barrels per day in March. India is reportedly considering reducing Russian crude imports further to 500,000–600,000 barrels per day while pursuing trade arrangements with the US, and has already stepped up purchases from the Middle East, Africa, and South America to bridge the supply gap.