US President Donald Trump announced that India will purchase oil from Venezuela, replacing some of the Russian oil it buys. This move comes after the US lifted sanctions on Venezuela's oil industry to make it easier for US companies to sell its crude oil.
The decision is seen as a positive development in US-India relations, which have been tense throughout the past year. Trump also expressed interest in China making a deal with the US to buy Venezuelan oil.
India stopped buying oil from Iran last year due to US sanctions over Tehran's nuclear programme, and then curbed its purchases of US oil before becoming the top buyer of Russian seaborne oil sold at a discount after Western nations imposed sanctions on Moscow for its invasion of Ukraine in 2022. The US government has been trying to pressure India to reduce its purchases of Russian oil, with Trump doubling duties on imports from India to 50% in August and earlier this month saying the rate could rise again if it did not curb its purchases.
However, Treasury Secretary Scott Bessent signaled in January that the additional 25% tariff on Indian goods could be removed, given what he called a sharp reduction in Indian imports of Russian oil. The lifting of sanctions on Venezuela's oil industry is expected to make it easier for US companies to sell its crude oil, and Trump's comments suggest that this move may help India switch from buying Russian oil.