The US offers India Venezuelan oil instead of Russian oil
The United States has proposed that India resume purchases of Venezuelan oil to compensate for the reduction in imports of Russian raw materials. This was reported by Reuters, citing sources familiar with the negotiations between the US and India.
According to the agency's interlocutors, India has committed to significantly reducing its purchases of Russian oil following the increase in US tariffs on such trade. Oil imports from Russia are expected to decline by several hundred thousand barrels per day in the coming months.
In January, India imported about 1.2 million barrels of Russian oil per day. According to Reuters sources, this figure will fall to around 1 million barrels in February, to 800,000 in March, and may subsequently fall to 500,000-600,000 barrels per day. According to the sources, this reduction should help India move towards a trade agreement with the US.
In March 2025, President Donald Trump imposed 25 per cent tariffs on countries that buy Venezuelan oil, including India. At the same time, Washington increased pressure on the Venezuelan authorities and, after the arrest of Venezuelan leader Nicolas Maduro on 3 January, effectively began to control the country's oil sector. According to Reuters, the US is considering supplying Venezuelan oil to India as part of a broader strategy to reduce Russia's oil revenues, which are financing the war against Ukraine.
It is not yet clear whether Venezuelan oil will be sold through international traders or directly by the state-owned company PDVSA. The White House and the US Treasury Department have not commented, and the Indian side has also refrained from making public statements.
After Russia's full-scale invasion of Ukraine in 2022, India became one of the largest buyers of Russian oil, taking advantage of lower prices due to Western sanctions. However, in recent months, Indian refineries have been increasingly shifting their focus to supplies from the Middle East, Africa and South America. According to trade sources, India's imports of Russian oil fell to a two-year low in December, while OPEC's share of supplies reached its highest level in 11 months.
