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US Allows India to Buy Venezuelan Oil, Cuts Russian Imports
31 Jan
Summary
- US permits India to resume Venezuelan oil purchases to replace Russian imports.
- India is set to significantly reduce Russian oil imports in the coming months.
- Tariffs on Venezuelan oil were initially imposed by the US in March 2025.
The United States has informed India that it may soon resume purchasing Venezuelan oil, a strategic shift to help New Delhi substitute its declining imports of Russian crude. This development is part of a broader U.S. effort to reduce Russian oil revenues funding the conflict in Ukraine.
India had committed to decreasing its Russian oil purchases following Washington's imposition of tariffs on such transactions. Projections indicate that India's Russian oil imports, which stood at approximately 1.2 million barrels per day (bpd) in January, are expected to fall to around 1 million bpd in February and further to 800,000 bpd by March.
These reduced imports are anticipated to continue, potentially reaching 500,000-600,000 bpd, which could facilitate a trade agreement with the United States. Previously, the U.S. had imposed a 25% tariff on countries like India for buying Venezuelan oil in March 2025. Indian refiners have already begun diversifying, with some like Hindustan Petroleum and Mangalore Refinery halting Russian oil purchases, while others are slowing down.
