Washington, D.C.—US President Donald Trump announced aboard Air Force One that India has already "made a deal" to purchase Venezuelan crude oil, marking a significant shift in New Delhi's energy strategy.
The move aims to help India diversify away from Russian oil imports while reducing reliance on Iranian supplies, reshaping global energy partnerships in the process.
Key Facts
• India hasn't received Venezuelan crude since May 2025, but Trump's announcement has raised hopes for resumption of shipments, with Indian refiners previously importing around 70,000 barrels per day in 2024
• Indian refining giants Reliance Industries, Indian Oil Corporation, HPCL, and MRPL have already expressed interest in resuming Venezuelan crude purchases due to cheaper prices and better refining margins
• Trump stated the "concept of the deal" was already finalized, signaling Washington's shift toward allowing India greater access to Venezuelan oil despite previous sanctions and trade restrictions
Trump made his announcement while speaking to reporters on Saturday, emphasizing that India would purchase Venezuelan oil instead of Iranian crude. The comment signals a broader realignment of global energy trade orchestrated by Washington to reduce India's dependence on Russian supplies.
India has navigated complex energy politics following US sanctions on Iran in 2019 and Russia's invasion of Ukraine in 2022. After stopping Iranian oil imports, Indian refiners turned heavily to discounted Russian crude, creating tension with Washington over the past year.
The Indian government, through its Ministry of External Affairs, has been quietly coordinating with Venezuela on deepening cooperation in energy, trade, and investment. Venezuelan President Deli Rodriguez spoke with PM Narendra Modi on Friday, describing it as the first leadership-level contact after recent US actions.
Indian refiners see tremendous value in Venezuelan crude. The oil is heavier and cheaper than alternatives, delivering significantly higher refining margins that directly boost company profits and operational efficiency.
ONGC, India's state-owned oil company, holds stakes in two Venezuelan oil fields but has seen dividends remain trapped due to political restrictions. Industry executives hope this new opening will allow ONGC greater operational control to revive declining production.
Trump's remarks drew criticism from India's National Congress party, with general secretary Jairam Ramesh questioning why Trump was providing information about India's own government decisions. However, industry leaders view the announcement as a genuine opportunity for energy diversification.
The deal would help India reduce its heavy reliance on Russian oil, a relationship born from Ukraine war economics but increasingly scrutinized by the United States. Venezuelan crude offers a middle path—affordable, accessible, and geopolitically acceptable to Washington.
Trump told reporters aboard Air Force One, emphasizing that the concept of the deal was already finalized.
This development signals a potential easing of US restrictions on India's energy engagement with Venezuela after years of sanctions. For Indian refiners facing pressure on Russian imports, Venezuelan crude represents both economic opportunity and geopolitical alignment with US interests.
Do You Know?
Indian refiners were importing an average of 150,000 barrels per day of Venezuelan oil in certain months during 2024, but sanctions and political pressure completely halted these shipments by May 2025—making this Trump announcement particularly significant for India's refining industry looking to restore profitable operations.
Key Terms
• Venezuelan Crude: Heavy, sulfur-rich oil from Venezuela that requires specialized refining but offers higher profit margins for processors like Reliance
• Sanctions: Government-imposed restrictions limiting trade and financial interactions, previously preventing Indian companies from purchasing Venezuelan oil
• Refining Margins: The profit difference between crude oil purchase price and refined product selling price—higher with Venezuelan crude
• Geopolitical Alignment: Strategic positioning of countries to support each other's economic and political interests in global affairs
Image from Wikimedia Commons