Washington/New Delhi: US President Donald Trump has claimed that India has reached an agreement to purchase crude oil from Venezuela, instead of Iran.
Speaking to reporters aboard Air Force One in Washington, DC, Trump said the arrangement with India had already been finalised. However, the Indian government has not issued any official confirmation of such a deal.
“We already have an agreement. India will buy oil from Venezuela, not from Iran,” Trump said, adding that the framework of the understanding with India had been concluded. He also remarked that China, if it wished, could continue buying Venezuelan oil.
Trump’s comments come just days after Prime Minister Narendra Modi held a telephone conversation with Venezuela’s Vice President Delcy Rodríguez on January 30, during which both leaders agreed to strengthen bilateral ties. Modi later posted on X that the two countries shared a common vision to deepen cooperation and elevate relations to new levels in the coming years.
Background: India–Venezuela Oil Trade
India suspended crude oil imports from Venezuela in 2019, following the imposition of stringent US economic sanctions, including secondary sanctions that penalised countries and companies trading Venezuelan oil by restricting access to US markets and banking systems. Prior to the sanctions, Venezuela accounted for nearly 6% of India’s total crude oil imports, according to multiple media reports.
Venezuela, a member of the Organisation of the Petroleum Exporting Countries (OPEC), holds the world’s largest proven oil reserves, yet contributes only about 1% of global oil supply due to years of underinvestment and sanctions.
Partial Sanctions Relief and Renewed Imports
In 2023–24, the US partially eased sanctions on Venezuela, allowing India to resume limited oil imports. India’s imports from Venezuela in 2024 were expected to average between 63,000 and 100,000 barrels per day, with total imports projected to reach around $1.41 billion in 2025.
However, in May 2025, Washington once again tightened restrictions and imposed additional tariffs on Venezuelan crude. As a result, India’s crude imports from Venezuela reportedly fell to just 0.3% of total imports by early 2026.
Reliance Industries Seeks US Approval
According to a Reuters report, Reliance Industries, India’s largest private company, has initiated efforts to obtain US approval to resume crude oil purchases from Venezuela. The move is seen as part of Reliance’s strategy to diversify supply sources amid Western pressure on India to reduce oil imports from Russia.
Sources told Reuters that Reliance representatives have been in discussions with the US State Department and the US Treasury Department. The company did not immediately respond to a Reuters email seeking comment.
Reliance previously imported Venezuelan crude under a US licence and operates the world’s largest refinery complex in Gujarat, with a processing capacity of about 1.4 million barrels per day. In 2024, the company imported roughly 63,000 barrels per day from Venezuela.
During the first four months of 2025, Venezuela’s state oil firm PDVSA shipped four cargoes to Reliance—equivalent to about 63,000 barrels per day. However, after the US suspended most licences in March–April 2025 and threatened tariffs on buyers of Venezuelan oil, Reliance’s final shipment arrived in India in May 2025.
Reliance has since stated that it would consider resuming purchases only if US regulations permit non-US buyers to legally import Venezuelan crude.
Venezuela–US Oil Arrangement
Last month, Trump announced that Venezuela would supply the US with 30 to 50 million barrels of crude oil, to be sold at market prices. He said the revenue from the sale would remain under his control and be used for the benefit of both Venezuelan and American citizens.
At current prices, 50 million barrels of crude oil would be valued at approximately ₹25,000 crore, underscoring the scale and strategic importance of the proposed transaction.
Trump’s remarks have added a new dimension to the evolving geopolitics of global energy markets, even as questions remain over the precise nature and status of India’s oil procurement strategy.
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