The White House has said that it will allow India to buy oil from Venezuela through a new system which will be under the United States government, reported IANS. This follows comments by the Reliance Industries, which said it may look at purchasing Venezuelan oil in a “compliant manner”, according to Reuters. The Indian petroleum major had stated that it would consider such deals only if it is allowed to sell the oil to non-US buyers.
US signals green light for India to buy Venezuelan oil
When asked directly if the US would allow India to buy Venezuelan oil, a senior administration official told IANS, “Yes.” The official did not provide further details, saying the framework is still being finalised. This matters because India was once one of Venezuela’s biggest oil buyers before American sanctions cut off trade.
According to Reuters, Reliance Industries, India’s largest buyer of Russian crude, recently announced that it does not expect any Russian oil deliveries in January. The company said its Jamnagar refinery hasn’t received Russian shipments in the past three weeks.
The decision comes after Trump warned that the US could increase import tariffs on India over its Russian oil purchases. India’s imports of Russian crude have already fallen sharply, to a three-year low of about 1.2 million barrels per day in December, down from around 2 million bpd in June, according to Reuters.
US offers Venezuela as an alternative
With Russian oil deliveries declining, the US move to allow India access to Venezuelan crude provides a timely alternative. Energy Secretary Christopher Wright explained that Venezuelan oil will be sold under a US-supervised system. “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,” he said, adding that funds would then be directed back to Venezuela in a way that “benefits the Venezuelan people, not corruption, not the regime,” Wright told Fox Business.
This offer to India comes just days after President Donald Trump backed a tough bipartisan sanctions bill aimed at countries buying Russian oil. The bill, called the Sanctioning Russia Act of 2025, would allow the US to impose massive trade penalties on countries that continue buying Russian energy. India, China, and Brazil are all mentioned as potential targets. Republican Senator Lindsey Graham said the bill was “greenlit” after he met Trump and could be taken up in Congress as early as next week.
One section of the bill would allow the US President to impose at least a 500% tariff on all goods and services imported from countries that knowingly buy Russian oil, gas, uranium, or petroleum products.
Trump has already warned India that tariffs could rise further if it does not reduce its dependence on Russian oil. While he has said he shares a good relationship with Prime Minister Narendra Modi, he has also openly expressed frustration over India’s energy choices.
India has repeatedly said its decision to buy Russian oil is based on national interest. New Delhi argues it needs affordable energy to protect consumers and ensure economic stability.
Put together, the message from Washington is becoming clearer. The US wants India to reduce its reliance on Russian oil, and Venezuela is being positioned as a possible alternative.
How the new Venezuela oil system will work
US Energy Secretary Christopher Wright explained the plan in an interview with Fox Business. Under this setup, the oil will be marketed by the US government. The money from sales will go into accounts controlled by Washington. According to Wright, the funds will then be sent back to Venezuela in a way that helps ordinary people.
“We’re allowing the oil to flow,” Wright said. “It’s marketed by the United States government. The money’s gonna flow into accounts.” He added, “You can sell oil together with the United States, or you can not sell oil.”
He also made it clear that this oil will not be limited to just one or two countries. Buyers from the US, Europe, Asia, and other regions have already shown interest. At an energy conference in New York, Wright added that the US plans to sell 30 to 50 million barrels of Venezuelan oil currently in storage.