India May Shift Oil Buying Strategy From Russia to Venezuela as US Pushes for Change

India may soon change an important part of its energy strategy as the United States pushes New Delhi to reduce its dependence on Russian oil and explore buying crude from Venezuela instead. According to a report by Reuters, the US has informed India that it can soon restart oil purchases from Venezuela, a country with the world’s largest proven oil reserves. This proposal is being seen as part of a wider American effort to reshape India’s oil imports and strengthen energy cooperation between the two nations.

Sources quoted by Reuters said India is preparing to cut its imports of Russian crude oil by several hundred thousand barrels per day over the next few months. If this plan goes ahead, it would mark a major shift in India’s oil buying pattern, which changed significantly after Russia invaded Ukraine in 2022.

The US pitch for Venezuelan oil comes at a time when India and Venezuela are also increasing their diplomatic engagement. Venezuela’s interim president Delcy Rodríguez said on Friday that she had spoken to Indian Prime Minister Narendra Modi over the phone. During the call, both sides agreed to cooperate more closely in the energy sector. This discussion took place just a day after Venezuela announced that it was opening its hydrocarbons sector to private companies, ending decades of strict state control.

Prime Minister Modi also shared details of the conversation in a post on X. He said that both countries had agreed to deepen and expand their bilateral partnership in all areas, with a shared vision of taking India–Venezuela relations to new heights in the coming years. These statements indicate that energy cooperation could become a key pillar of future ties between New Delhi and Caracas.

Venezuela’s decision to open its oil and gas sector to private investment is a major policy shift. For many years, the country’s oil industry was tightly controlled by the state, which discouraged foreign investment. By reforming its laws, Venezuela hopes to attract global capital, boost production, and revive its oil industry, which has suffered due to mismanagement, lack of investment, and international sanctions.

Despite these reforms, Venezuela remains at the centre of US foreign policy pressure. In March 2025, US President Donald Trump imposed 25 percent tariffs on countries buying Venezuelan oil, including India. This move was part of Washington’s intensified campaign against Venezuelan President Nicolas Maduro. According to the report, US forces captured Maduro on January 3, after which Washington began directing the Caracas government and announced plans to control Venezuela’s oil industry for an indefinite period.

India’s oil relationship with Russia grew rapidly after 2022. When Russia invaded Ukraine, Western countries imposed sanctions on Moscow, which forced Russian oil to be sold at discounted prices. India took advantage of these lower prices and became one of Russia’s biggest oil buyers. This helped India keep domestic fuel prices relatively stable during a period of global energy uncertainty.

However, this strategy has come under increasing pressure. The United States has repeatedly urged India to reduce its purchases of Russian oil, arguing that the revenue helps fund Russia’s war in Ukraine. At the same time, trade costs have risen for India. In August, US tariffs on Indian goods reached 50 percent after Washington added an extra 25 percent levy linked to India’s purchases of Russian oil.

These developments have pushed India to rethink its crude oil sourcing strategy. India’s oil minister said last week that the country is expanding its sources of crude as imports from Russia decline. Two sources told Reuters that India is preparing to reduce Russian oil imports to below one million barrels per day in the near future.

Data shows that India imported around 1.2 million barrels per day of Russian oil in January. This figure is expected to fall to about one million barrels per day in February and around 800,000 barrels per day in March. One source said that imports could eventually drop further to about 500,000 to 600,000 barrels per day. Such a reduction could help India secure a broader trade deal with the United States and ease tariff-related tensions.

Operational challenges linked to Western sanctions have also made it harder for Indian refiners to deal with Russian crude. These difficulties include payment issues, shipping problems, and insurance restrictions. As a result, Indian refiners have started increasing oil imports from other regions.

Trade data shows that India’s imports of Russian oil fell to their lowest level in two years in December. At the same time, the share of oil imported from OPEC countries rose to an 11 month high. Indian refiners have increased purchases from producers in the Middle East, Africa, and South America to make up for reduced Russian supplies.

Several Indian refiners have already stopped buying Russian oil altogether. State-run companies such as Hindustan Petroleum and Mangalore Refinery and Petrochemicals, along with private refiner HPCL Mittal Energy, have cut ties with Russian crude. Other state refiners, including Indian Oil Corporation and Bharat Petroleum Corporation, have slowed their purchases. Officials shared these details during the India Energy Week conference held earlier this week.

However, Russian oil has not disappeared completely from India’s energy mix. A private operator that runs the world’s largest refining complex is planning to buy up to 150,000 barrels per day of Russian oil from February, according to a company source. This shows that while India is reducing its dependence on Russian oil, it is not cutting it off entirely.

The US effort to supply Venezuelan crude to India fits into Washington’s broader goal of cutting Russia’s oil revenues. By encouraging countries like India to move away from Russian oil, the US hopes to weaken Moscow’s financial ability to continue the war in Ukraine.

It is still unclear how Venezuelan oil would reach India if purchases resume. Reuters sources did not specify whether the oil would be sold through global trading houses such as Vitol or Trafigura, or directly by Venezuela’s state oil company PDVSA. These operational details will be important in deciding how quickly and smoothly India can shift to Venezuelan crude.

For India, the situation involves balancing multiple priorities. The country needs affordable and reliable energy to support its growing economy. At the same time, it must manage relations with major global powers like the United States while protecting its export interests from high tariffs. Diversifying oil imports by adding Venezuela as a supplier could help India reduce risks linked to overdependence on any one country.

In the coming months, India’s oil import decisions will be closely watched by global markets and policymakers. A significant move away from Russian oil towards Venezuelan crude would not only reshape India’s energy strategy but also reflect the changing balance of power and diplomacy in the global oil market.