The United States has signalled to India that it may soon resume purchases of Venezuelan crude oil if New Delhi sharply reduces its imports of Russian oil in the coming months, a move aimed at easing growing tensions between the two countries, according to media reports.
Allowing India access to Venezuelan crude would serve multiple U.S. objectives. It would provide India with an alternative and reliable energy source, reduce Russia’s share in India’s oil import basket, and bring New Delhi’s energy choices more closely in line with U.S. geopolitical priorities.
The move comes against the backdrop of rising friction between Washington and New Delhi over India’s large-scale purchases of discounted Russian oil following Russia’s invasion of Ukraine. While the United States has pressed allies and partners to cut Russian energy imports to strengthen sanctions, India has defended its strategy as necessary to ensure energy security, economic stability and affordable fuel for its population.
The disagreement has increasingly spilt into trade and diplomacy, with Washington employing tariffs and diplomatic pressure, while India has asserted its right to pursue an independent foreign and energy policy. The standoff highlights the broader challenge of balancing geopolitical alignments with national economic interests in a rapidly shifting global energy landscape.
For India, the potential shift reflects a broader effort to safeguard energy security while recalibrating ties with the United States amid intensifying geopolitical pressures in global oil markets. As one of the world’s largest crude oil importers, India relies heavily on stable and affordable supplies to sustain economic growth, curb inflation and meet domestic demand.
A reduction in Russian oil imports, previously a key source of discounted crude, signals New Delhi’s willingness to adjust its sourcing strategy in response to diplomatic pressure, even as it seeks to avoid excessive dependence on any single supplier. At the same time, greater engagement with alternative suppliers such as Venezuela would allow India to diversify its energy basket while retaining leverage in global markets. |
