After facing sanctions on the import of crude oil from Russia, India is uncertain about how the US takeover of Venezuela is going to affect its imports from there. India imported nearly $1.76 billion worth of crude from Venezuela in 2024, which is less than 2 per cent of India’s overall imports. Although India is not reliant on oil imports from Venezuela, there will still be an impact, as the US has asked India to reduce its oil imports from Russia. As of now, nearly 50 per cent of India’s crude imports are from Russia.
US President Donald Trump has stated that his government would take care of the governance of Venezuela in transition until the country finds a reliable government and would also handle its oil reserves, as the US had the expertise. This has naturally put all importers in a quandary. Until now, India was the third largest importer of crude from Venezuela, with China as the largest and the US as the second largest. The US would now control exports from Venezuela, and importing nations will have to wait until such time as further details are shared.
Data from the Directorate General of Commercial Intelligence & Statistics and the UN COMTRADE database reveal that India’s average oil imports from Venezuela had risen to 63,000-100,000 barrels per day in 2024 – a nearly 500 per cent increase over the previous year. India’s trade ties with Venezuela earlier remained focused on oil imports, though these had dropped to negligible levels in 2021 and 2022 due to US sanctions. The oil trade rebounded in 2023-24, with India’s petroleum imports from Venezuela rising to nearly $1 billion. According to the IEA, India remained the third-largest buyer of Venezuelan oil after China and the US for most of 2025, although imports began to decline in the latter part of the year amid renewed geopolitical tensions and tighter US sanctions.
“Recent developments in Venezuela are a matter of deep concern. We are closely monitoring the evolving situation. India reaffirms its support for the well-being and safety of the people of Venezuela. We call upon all concerned to address issues peacefully through dialogue, ensuring peace and stability of the region. The Embassy of India in Caracas is in contact with members of the Indian community and will continue to provide all possible assistance,” said Ministry of External Affairs spokesman Randhir Jaiswal. India’s complex refineries, like the Jamnagar facility, are specifically calibrated to process Venezuela’s dense, heavy crude. A total blockade would force Indian refiners to scramble for more expensive alternatives from the Middle East.
Meanwhile, Venezuela holds some of the largest proven crude reserves globally, and there are major concerns about potential disruptions to global supply, though Venezuela’s state-run energy firm PDVSA has said that its oil production and refining operations are functioning normally after Maduro’s capture, and its key facilities have not suffered damage from US attacks. The port of La Guaira, near the capital Caracas, sustained severe damage, though it is not used for oil operations.
The US role
Though Venezuela’s crude reserves are among the largest globally, international oil prices remain subdued for now, as the country’s exports have stayed limited due to long-standing US sanctions over the years. US President Trump said on 3 January that the US would be ‘strongly involved’ in Venezuela’s oil industry, following the operation to capture Venezuelan President Nicolas Maduro. Trump said that American oil companies are the biggest and greatest in the world and would play a major role in dealing with the crisis.
The US would now control exports from Venezuela, and importing nations will have to wait until further details are shared
Oil prices have edged lower and are hovering at about the $60-a-barrel mark, even as uncertainty grows around developments in one of the world’s most oil-rich nations. In December, Trump had announced a blockade on oil tankers entering or leaving Venezuela, with the US subsequently seizing two cargoes of Venezuelan crude.
Venezuela’s oil production had collapsed to historic lows in 2020, with annual output falling to 192 million barrels, according to data from the International Energy Agency & Trading Economics.
Production recovered to 550,000-630,000 barrels per day in 2021 and then, in 2022 and 2023, output gradually rose to 217 million barrels and 264 million barrels, respectively, aided by stabilisation through Iranian diluent swaps and the easing of sanctions under US General Licence 44.