U.S. Moves Swiftly to Secure Venezuelan Oil for India as Part of Strategic Shift
MARACAIBO, VENEZUELA: The oil tanker "Minerva Astra" lies at anchor in Maracaibo, Venezuela, as protester with the Venezuelan flag approaches the vessel 17 December, 2002. Tanker captains and oil industry staff are suing the head of Venezuela's giant Petroleos de Venezuela after the army seized vessels, refineries and other installations, the prosecutor general's office said Tuesday. AFP PHOTO/Andrew ALVAREZ (Photo credit should read ANDREW ALVAREZ/AFP via Getty Images)
Friday, February 20, 2026 – The United States is in “active negotiation” over the sale of Venezuelan oil to India, a move designed to help India diversify its sources of crude oil, U.S. Envoy Sergio Gor said on Friday.
The U.S. has made diversification away from Russian crude a condition for cutting tariffs on goods imported from India, the world’s third-biggest oil importer and consumer.
“The Department of Energy is speaking to the Ministry of Energy here, and so we’re hoping to have some news of that very soon,” Gor told reporters on the sidelines of an event in New Delhi where India joined the U.S.-led Pax Silica initiative aimed at building a silicon supply chain for high-tech products.
President Donald Trump this month agreed to cut tariffs on Indian goods to 18% under an interim trade deal. He also removed a 25% punitive levy after India agreed to end the purchase of Russian oil, which the U.S. said helps fund Russia’s invasion of Ukraine.
He stated that India would buy more oil from the U.S. and potentially Venezuela. A final trade deal with India will be signed “sooner than later” as a “few tweaking points” are required, Gor said, adding Trump has been invited to India by Prime Minister Narendra Modi.
The interim trade deal is set to become effective in April and the U.S. is likely to issue a formal notification this month to reduce its tariff on Indian goods to 18%, India’s trade minister, Piyush Goyal, said on Friday.
The U.S. and allies imposed sanctions on Russia’s energy sector following Russia’s 2022 invasion. India then became the top customer for Russian seaborne crude which it bought at rock-bottom prices, to the consternation of Western nations.
“On oil, there’s an agreement,” Gor said. “We have seen India diversify on their oil. There is a commitment. This is not about India. The United States doesn’t want anyone buying Russian oil.”
The U.S. had pitched the sale of Venezuelan oil to India to help replace Russian oil imports. State-run Indian Oil Corp, Hindustan Petroleum and Bharat Petroleum as well as private-sector refiners Reliance Industries and HPCL-Mittal Energy have ordered Venezuelan oil.
