Washington. America has told India that it can soon start buying crude oil from Venezuela. According to three sources related to the matter who spoke to Reuters, America is presenting this supply as an alternative to Russian oil, because India is going to rapidly reduce the import of Russian oil.
This initiative has come at a time when India has promised a major reduction in the purchase of crude oil from Russia after Washington increased the tariffs related to Russian oil imports. According to sources, India is preparing to reduce the import of Russian oil by several lakh barrels per day in the coming months.
Tariff was imposed on those buying oil from Venezuela
President Donald Trump had imposed a 25 percent tariff on countries buying Venezuelan oil, including India, in March 2025. Along with this, his government had intensified the campaign against Venezuelan President Nicolas Maduro, who was captured by American forces on January 3.
But who will sell Venezuelan oil?
After this there were signs of change in America’s attitude. Washington told New Delhi that it could resume buying oil from Venezuela to compensate for the shortfall in Russian supplies. The move is part of a US strategy to limit Russia’s income from oil exports, which is funding the Ukraine war. The sources did not clarify whether Venezuelan oil would be sold through any private trading companies or directly through the government oil company there.
‘Will bring diversity in sources of crude oil’
After Russia’s attack on Ukraine in 2022, India became a major oil buyer of Russia due to Western sanctions and huge discounts. However, later President Donald Trump increased tariffs on Indian products. After adding additional tariffs related to Russian oil purchases, these tariffs reached 50 percent by August. Last week, Oil Minister Hardeep Singh Puri had said that India is diversifying its sources of crude oil along with reducing imports of Russian oil. He did not say anything directly about Venezuela.
Imports may fall by 5 to 6 lakh barrels per day: According to two sources of Reuters, India is soon preparing to bring down Russian oil imports below 10 lakh barrels per day. In January it was about 12 lakh barrels per day. It is expected to fall to 10 lakh barrels per day in February and to about 8 lakh barrels per day in March. Another source said that in future this quantity may also reach 5 to 6 lakh barrels per day. This can help India in making a comprehensive trade agreement with America.
According to trade data, India’s Russian oil imports fell to the lowest level in the last two years in December. Due to this, the share of oil from OPEC countries in India’s imports reached its highest level in 11 months. Indian refineries have increased the purchase of oil from the Middle East, Africa and South America to meet the shortage.