US pushes Venezuelan oil to India as Russian crude imports plunge under tariff tensions

The United States has signaled to India that it can resume purchasing Venezuelan crude oil, positioning it as a vital alternative amid New Delhi’s significant cutbacks on Russian oil imports driven by escalating tariff pressures.

According to three sources familiar with the matter, this move aims to offset the sharp decline in Russian crude shipments to India, which are set to fall drastically in the coming months.

India, once a major buyer of discounted Russian crude following Moscow’s 2022 invasion of Ukraine and ensuing Western sanctions, now faces mounting US tariffs on imports tied to Russia.

These tariffs, imposed initially by the Trump administration and increased multiple times, have pushed India to diversify its crude supply. Officials indicate that Indian imports of Russian oil, which hovered around 1.2 million barrels per day (bpd) in January, could fall below one million bpd by February and plunge further to approximately 800,000 bpd by March.

The US, which had earlier imposed 25% tariffs on Venezuelan oil buyers—including India—as part of a broader campaign against Venezuelan President Nicolas Maduro’s regime, has now softened its stance. This strategic shift comes as Washington intensifies efforts to choke off Russian oil revenues that fund Moscow’s war in Ukraine by encouraging allies to cut back on Russian crude.

While details remain scarce on whether Venezuelan oil will be sold directly by Venezuela’s state oil company PDVSA or via international trading firms like Vitol or Trafigura, sources suggest India is gearing up to increase imports from alternative suppliers in the Middle East, Africa, and South America to plug the void left by Russia.

Oil Minister Hardeep Singh Puri confirmed that India is actively diversifying its crude sources amid the reduction in Russian imports, underscoring a pivotal realignment in global energy flows driven by geopolitical and economic pressures.