The United States has entered "active negotiations" with India over the sale of Venezuelan oil, a move designed to cement New Delhi's shift away from Russian energy imports as part of a broader trade realignment between the two nations. US Ambassador to India Sergio Gor confirmed the talks on Friday, stating that the Department of Energy is engaged with its Indian counterpart and that an announcement could come "very soon". This initiative follows Washington's successful military operation that ousted Venezuelan President Nicolás Maduro last month, after which the US granted licenses to trading houses Vitol and Trafigura to market millions of barrels of Venezuelan crude, effectively positioning America as a gatekeeper of the South American nation's oil exports.
The oil negotiations are inextricably linked to the landmark interim trade agreement announced by President Donald Trump and Prime Minister Narendra Modi earlier this month. Under that framework, the US agreed to reduce tariffs on Indian goods to 18 percent, down from the 50 percent reciprocal tariff previously threatened. A key condition for this concession, according to Ambassador Gor, was India's commitment to cease purchases of Russian oil. "On the oil, there's an agreement... 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," Gor stated plainly at a press briefing in New Delhi. The message from Washington is unambiguous: American market access is contingent upon adherence to US foreign policy objectives, even when they dictate the sovereign energy choices of a strategic partner.
The pressure is yielding tangible results. Data shows India's imports of Russian crude in January fell to their lowest level since late 2022, dropping 23.5 percent from December and approximately one-third compared to the previous year. Russian oil's share of India's overall imports slid to 21.2 percent, its smallest proportion since October 2022. Indian refiners, including state-run Indian Oil Corp and private-sector giant Reliance Industries, have already placed orders for Venezuelan oil as Washington has issued new licenses authorizing such transactions. The shift represents a dramatic reversal for India, which had become Russia's top customer for seaborne crude after the 2022 invasion of Ukraine, buying heavily discounted oil that drew Western ire. Now, Middle Eastern grades have reclaimed dominance, accounting for about 55 percent of India's oil imports in January, with Saudi Arabia returning as the top supplier.
The oil negotiations unfolded against the backdrop of India's formal entry into the US-led "Pax Silica" initiative, a strategic alliance aimed at securing supply chains for critical minerals, semiconductors, and artificial intelligence. At the signing ceremony, Ambassador Gor framed the partnership as a fundamental choice between freedom and coercion, declaring that the two nations "choose to win" by building together rather than merely trading with one another. Jacob Helberg, US Under Secretary of State for Economic Affairs, delivered a pointed address asserting that both nations were united in saying "no to weaponised dependency" and "no to blackmail". The timing of India's inclusion in Pax Silica, after being initially excluded from the December 2025 launch, underscores how the resolution of trade tensions and energy disputes has paved the way for deeper technological cooperation.
While Indian officials have been circumspect about explicitly confirming a political commitment to end Russian oil purchases, framing energy imports as commercial decisions, the trajectory is unmistakable. India has committed to purchasing $500 billion of US energy products, aircraft, and technology goods over the next five years as part of the trade deal framework. The interim agreement, set to become effective in April, will see Washington issue formal notification this month to implement the reduced 18 percent tariff rate. Ambassador Gor expressed confidence that a final trade deal would be signed "sooner than later," noting that President Trump has received an invitation from Prime Minister Modi to visit India. For Washington, the arrangement represents a strategic victory: leveraging economic inducements to pry a key partner away from Russian energy dependence while simultaneously opening new markets for American and now American-controlled Venezuelan oil. For New Delhi, the calculus is more complex, balancing its historical non-alignment and energy security needs against the undeniable benefits of closer integration with the world's largest economy.