Venezuelan oil to India? US says it’s ready, but deal framework remains unfinished

A senior Trump administration official has said the United States would allow India to buy Venezuelan oil under a Washington-controlled framework that is still being finalised. When asked whether the US would permit India to resume purchases of Venezuelan crude, the official replied, “Yes.”

The official referred to recent remarks by US Energy Secretary Christopher Wright, who told Fox Business that Washington would be open to selling Venezuelan oil to “almost all countries.”

“So that oil, we’re allowing it to flow. Again, it’s marketed by the United States government. The money’s gonna flow into accounts,” Wright said. He added that the proceeds would be channelled to Venezuela in a way that “benefits the Venezuelan people, not corruption, not the regime.”

Wright further noted that the oil would not be restricted to one or two destinations, adding that buyers from the US, Europe, Asia and other regions had already expressed interest.

Before US sanctions halted trade, India was among Venezuela’s largest oil buyers. The Trump administration’s proposed arrangement could offer New Delhi an alternative source to diversify its energy imports at a time when domestic demand continues to rise.

Earlier, Trump had said the US would refine and sell up to 50 million barrels of Venezuelan crude under a new arrangement following the ouster of former Venezuelan President Nicolas Maduro.

The developments come amid broader shifts in India’s crude sourcing. Reliance Industries has said it does not expect any Russian oil deliveries in January, noting that its Jamnagar refinery has not received Russian shipments in the past three weeks, according to Reuters.

This follows warnings from the Trump administration that US import tariffs on India could rise as high as 500 per cent over its continued purchases of Russian oil. US Senator Lindsey Graham said on Thursday that Trump had greenlit legislation to “punish” countries such as India, China and Brazil for buying Russian crude despite sanctions.

“This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin's bloodbath against Ukraine. I look forward to a strong bipartisan vote, hopefully as early as next week,” Graham wrote on X.

India has repeatedly said its decision to purchase Russian oil is driven by national interest, stressing the need for affordable energy to protect consumers and maintain economic stability.