The United States has given a green signal for India to resume buying oil from Venezuela, a trade blocked for years due to sanctions. US officials clarified that while Indian companies can import Venezuelan crude, all transactions and payments will be closely monitored by Washington. Final rules are still being worked out.
For India, Venezuelan oil could be a lifeline. With imports of Russian crude declining due to US pressure, refiners are looking for alternatives. Reliance Industries, which runs India’s largest refinery, said it may restart Venezuelan oil imports once US regulations are clear. Indian Oil Corporation and Hindustan Petroleum have also shown interest.
Previously, Reliance imported around 63,000 barrels per day of Venezuelan crude in early 2025 under US permits. The last cargo arrived in May 2025, after which sanctions stopped further shipments. Venezuelan crude is heavy and requires special refining, so Indian companies will likely increase imports slowly, step by step.
Experts see this as a strategic win for India. It offers access to discounted heavy crude while remaining within US rules. However, all oil movement and payments will be under Washington’s control, limiting India’s flexibility.
The move also shows a shift in US policy. By opening this trade under supervision, Washington keeps control over Venezuelan oil exports while easing India’s supply challenges. For refiners, it could mean more stable crude supply, reduced dependence on Russian barrels, and a chance to process heavy Venezuelan grades at competitive prices.
Still, approvals and regulations will dictate how quickly the imports can begin and how much crude India can receive. The cautious reopening of this trade route marks a balance between strategic oversight by the US and practical benefits for India’s energy sector.
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