US Reportedly Offers Venezuelan Oil to India Amid Declining Russian Imports
The United States has reportedly offered India the option to resume importing Venezuelan oil to compensate for significant reductions in Russian crude purchases. This shift comes as India commits to cutting Russian oil imports by hundreds of thousands of barrels daily, driven by additional US tariffs. Previously, the US had imposed tariffs on India for buying Venezuelan oil. Data shows India's Russian crude imports are already down, and Russian suppliers are widening discounts due to reduced demand.
The United States is reportedly permitting India to resume imports of Venezuelan crude oil, a move aimed at offsetting India's planned reduction in Russian oil purchases. This change in policy marks a significant development, as the U.S. had previously imposed tariffs on India specifically for its purchases of Venezuelan oil. The decision arises from India's commitment to drastically cut back on Russian crude imports—by several hundred thousand barrels per day—in response to new U.S. tariffs linked to its Russian oil acquisitions.India emerged as a major buyer of Russian crude following the 2022 invasion of Ukraine, taking advantage of steep discounts amidst Western sanctions on Moscow. However, recent U.S. sanctions have pressured India to diversify its energy sources away from Russia. Data from analytics firm Kpler indicates that India's imports of Russian oil are already declining, showing a nearly 30% drop in early January compared to the previous year, and a 3% decrease from December 2025. Only three Indian refiners are currently importing Russian crude, leading Russian suppliers to offer wider discounts of $5-6 per barrel to attract buyers. This strategic offer of Venezuelan oil by the U.S. highlights efforts to manage global energy markets and maintain pressure on Russia, while providing India with an alternative supply amidst evolving geopolitical dynamics.
