US Urges India to Swap Russian Crude for Venezuelan Oil Amid Shifting Sanctions

New Delhi, january 31, 2026: In a major geopolitical maneuver, the United States has reportedly invited India to resume large-scale purchases of Venezuelan crude oil. This “pitch” comes as Washington pressures New Delhi to drastically scale back its imports of Russian oil, which have become a cornerstone of India’s energy security since 2022.

According to sources familiar with the matter, the U.S. outreach is designed to offer India a viable alternative to Russian grades while simultaneously tightening the economic squeeze on Moscow. This shift follows a dramatic month in South American politics, including the reported capture of Venezuelan President Nicolás Maduro by U.S. forces on January 3, 2026, and a subsequent move by Washington to oversee the redirection of Caracas’s vast oil reserves.

The Trade-Off: Tariffs and Diversification

The proposal is not just about energy; it is a high-stakes trade negotiation. In 2025, the Trump administration imposed 25% tariffs on nations purchasing Venezuelan oil and later hiked tariffs on Indian goods to as much as 50% due to its continued reliance on Russian crude.

Washington has now signaled that it may roll back these punitive measures if India pivots toward Venezuelan supplies.

• Russian Decline: India’s Russian oil imports fell to a two-year low in December 2025.
• Projected Cuts: Current estimates suggest India is on track to reduce Russian intake from 1.2 million barrels per day (bpd) in January to as low as 500,000 bpd by the end of the quarter.
• The Venezuelan Advantage: Venezuela possesses the world’s largest proven oil reserves. For Indian refiners like Reliance Industries and Indian Oil Corp (IOC), the heavy Venezuelan crude is technically compatible with their complex refining systems.

A New Framework for Caracas

Unlike previous years where trade was hampered by shifting sanctions, the U.S. is reportedly moving toward a “Washington-controlled framework” for Venezuelan exports. Trading giants like Vitol and Trafigura are expected to play a key role in marketing these barrels.

Indian Oil Minister Hardeep Singh Puri recently noted that India is actively “diversifying its crude sources,” highlighting that the country now buys from over 41 different nations. While New Delhi has not officially confirmed a total halt of Russian oil, the economic incentive of a U.S. trade deal—combined with the threat of sustained tariffs—is making the Venezuelan option increasingly attractive.

Global Energy Impact

This realignment marks a significant “re-centering” of global energy flows. If India successfully replaces a portion of its Russian basket with Venezuelan crude, it could significantly weaken Moscow’s primary revenue stream for its ongoing conflict in Ukraine while restoring Caracas as a dominant player in the Asian market.