The US is proposing a framework for India to access Venezuelan oil while maintaining tight control over its distribution and proceeds. This strategy aligns with efforts to reduce India’s reliance on Russian crude amid escalating trade tensions.
US Oversight on Venezuelan Oil
Washington plans to handle the marketing of Venezuelan crude to global buyers, including India, channeling all revenues into monitored accounts. These funds would support Venezuela’s populace rather than past regime corruption, as explained by Energy Secretary Christopher Wright. Strict enforcement, backed by recent tanker seizures, ensures only approved transactions proceed.
Push Against Russian Imports
President Trump has threatened steep tariffs on nations continuing Russian oil purchases, with Senator Lindsey Graham pushing for 500% duties on such petroleum products. India sourced about $30.8 billion in Russian crude from April to November 2025, representing a third of its imports. Major refiner Reliance Industries, a key Russian buyer, now eyes Venezuelan alternatives after its last such shipment in May 2025.
Benefits for Indian Energy Needs
Venezuelan heavy crude suits India’s advanced refineries, offering diversification as demand rises. Pre-sanctions, India ranked among Caracas’s top clients; limited volumes could resume under US supervision. This setup provides New Delhi a compliant option to balance energy security and diplomatic pressures.
