The Trump administration provides Venezuela access to the US Indian market at a very interesting moment in global power dynamics, allowing New Delhi to purchase crude from Caracas on a UN-approved basis under an arrangement. The gesture comes as Washington continues to pressure India to gradually reduce its dependence on discounted Russian oil under new global sanctions, as it faces an ongoing global wave of energy volatility and ongoing sanctions in the world.

The proposal would give India access to Venezuelan crude valued at roughly $2 billion — roughly 30 to 50 million barrels — without creating difficulties involving the sanctions, officials close to the negotiations said. The offer highlights Washington’s efforts to strike a balance between pressure and incentives in its engagement with India.

A Well-Calculated Offer Under the Global Energy Shift

The decision comes after another round of diplomatic engagement between Washington and Caracas, a long-fractured couple of years after the former did not seek to be in dialogue one more time. US officials consider India an important partner in that it can absorb Venezuelan heavy crude and be on a par with general Western planning goals.

“It’s just a classic carrot-and-stick policy,” said an energy policy analyst. “Washington would like to manage Moscow’s oil clout but still keep the energy security of India.”

The Trump administration provides Venezuelan oil to India as part of a more comprehensive strategy to boost global oil markets that have proven fragile to geopolitical shocks, Middle East rivalries and sanctions-related supply shocks.

Where India Applies to the Venezuelan Oil Equation

India occupies a unique position in the global oil ecosystem. Venezuelan crude is categorised as extra-heavy or ‘hard’ crude, and is only possible to operate on an efficient basis in small blocks from a few countries — mainly, the US, China, and India. Indian refineries, especially those with sophisticated refining facilities, are technically prepared to process such grades.

Governmentally owned ONGC Videsh Limited already has deposits in Venezuelan oil fields and gives India an operational and logistical edge.

“India is one of the small handful of countries out there that actually can turn that crude into value,” said an industry executive. “That’s what makes New Delhi integral to any Venezuelan oil revival plan.”

Narendra Modi’s Indian Oil Policy

Despite continued geopolitical pressure, India has followed the same practical interest-first energy regime under Prime Minister Narendra Modi. Under Modi, New Delhi has long maintained that making energy affordable is essential for continued economic growth and public protection of consumers.

Officials say India is open to diversifying its oil basket, but is wary of sudden changes. The Venezuelan offer offers flexibility while avoiding immediately pulling out of Russian supplies.

“India doesn’t respond well to ultimatums,” concluded a former diplomat. “But it responds to options.”

Geopolitics Underlying the Venezuelan Oil Attempt

The expanded oil outreach comes after tumultuous political developments in Venezuela and a recalibration of US foreign policy priorities. Washington is now more focused on countering China’s growing power throughout Latin America, Africa and other strategic commodity markets.

As such, inviting India to step up its relationship with Venezuela aligns with this broader containment strategy, providing New Delhi with an enhanced influence over the trajectory of multipolar flows of energy. The Trump administration provides Venezuelan oil to India more than a new energy deal — rather, it’s a geopolitical signal, signalling that India is a key swing player in the global power equation.

G7, Rare Earths and India’s Increasing Strategic Weight

India’s growing role is also reflected, however, in its increasing appearance at elite global meetings. New Delhi has been welcomed into the G7 discussions, especially on supply chains and rare earth materials, topics China dominates.

United States Commerce Secretary Gina Raimondo recently underlined India’s importance, saying global supply chain resilience is incomplete without Indian participation.

“Energy, rare earths and manufacturing are all interconnecting into a strategic dialogue,” said one geopolitician in a recent briefing. “India sits at the very heart of all three.”

Balancing Russia, the US, and Strategic Autonomy

While Washington’s direction is unmistakable, Indian figures insist that its decisions on oil importation are still determined by national interest instead of geopolitical alignment. Russia has remained as a major source by far for its most competitive pricing, but India has in general stepped up sourcing from the Middle East with the US and may now go to Venezuela as sourcing more.

Energy experts say that the Venezuelan option enhances India’s negotiating position worldwide.

“More suppliers means more leverage,” a refinery consultant said. “That’s the big real win for India.”

India and Global Energy Politics

For India with the Trump administration’s new offering of Venezuelan oil, a deeper refocus in geopolitical power diplomacy of global energy diplomacy has been seen. That, for India, raises strategic self-reliance, it diversifies supply sources. As a key global energy consumer, it strengthens India’s position: Its position as a pivotal global energy consumer, and thus helps in its economic development.

For the US, it is recognition that cooperation, not coercion, is the most successful approach to reach a rising power like India. Dealing with this proposal will be an ongoing exercise, and the next several months will test whether this proposal translates to long-term energy cooperation — or a strategic signal in the quickly changing geopolitical landscape.

References:

🔗 Sunday Guardian Live — Trump Administration Offers Venezuelan Oil for India:
https://sundayguardianlive.com/world/trump-administration-offers-venezuelan-oil-for-india-will-us-controlled-oil-flow-to-india-163915/

🔗 Reuters — India’s Reliance in talks for US permit to buy Venezuelan oil:
https://www.reuters.com/business/energy/indias-reliance-talks-us-permit-buy-venezuelan-oil-sources-say-2026-01-09/

🔗 The CSR Journal — Trump administration offers Venezuelan oil for India:
https://thecsrjournal.in/trump-administration-offers-venezuelan-oil-india/

🔗 NDTV — US Willing To Sell Venezuelan Oil To India?
https://www.ndtv.com/world-news/us-willing-to-sell-venezuelan-oil-to-india-what-white-house-official-said-10561981

🔗 India Today — Trump Vs Modi: US Offers To Sell Venezuelan Oil To India:
https://www.indiatoday.in/india/video/us-offers-to-sell-venezuelan-oil-to-india-under-washington-controlled-framework-ytvd-2849646-2026-01-10

🔗 National Herald India — US offer on Venezuelan oil exposes India’s energy autonomy:
https://www.nationalheraldindia.com/amp/story/business/us-offer-on-venezuelan-oil-exposes-indias-shrinking-energy-autonomy

🔗 Times of India (Video) — Venezuelan oil for India? US offer comes with conditions:
https://timesofindia.indiatimes.com/videos/news/venezuelan-oil-for-india-us-offer-comes-with-conditions-as-pressure-grows-over-russian-crude/videoshow/126432420.cms

🔗 Times of India — Trump to decide which oil firms will operate in Venezuela:
https://timesofindia.indiatimes.com/world/us/youre-dealing-with-us-trump-says-us-to-decide-which-oil-firms-will-operate-in-venezuela-meets-company-executives-at-white-house/articleshow/126443264.cms

🔗 Dainik Jagran (English) — US opens door for India to buy Venezuelan oil:
https://english.dainikjagranmpcg.com/international/-us-opens-door-for-india-to-buy-venezuelan-oil/article-12179