Trump Announces India-Venezuela Oil Deal; Reliance in Talks with US for Approval
In a statement that could reshape global oil trade flows, former US President Donald Trump has claimed that India has finalized a deal to purchase crude oil from Venezuela instead of Iran. Speaking to reporters, Trump stated, “We have already made a deal. India is coming and will buy oil from Venezuela, not from Iran,” adding that China was also welcome to join the arrangement. The Indian government has not yet officially commented on the claim.
The announcement highlights the ongoing geopolitical maneuvering in global energy markets, where major consumers like India are navigating US sanctions to secure affordable crude supplies.
India’s On-Again, Off-Again Trade with Venezuela
India, the world’s third-largest oil consumer, historically relied on Venezuela for a portion of its imports—about 6% before 2019. That year, stringent US secondary sanctions forced India and other nations to halt Venezuelan crude purchases. While imports briefly resumed after a partial easing of sanctions in 2023-24, renewed US restrictions in May 2025 slashed India’s share of Venezuelan oil to a mere 0.3% by early 2026.
This historical context makes Trump’s claim significant. A formal India Venezuela oil deal would mark a major policy shift, providing India with a alternative source amid Western pressure to reduce dependence on Russian oil.
Reliance Industries Leads Charge for US Approval
Adding commercial weight to the political statement, Indian refining giant Reliance Industries has reportedly initiated talks with US authorities. The company is seeking a license to resume importing Venezuelan crude to its vast Jamnagar refinery complex.
Motivation: The move is driven by the dual need to diversify away from Russian oil and secure cost-effective feedstock for its 1.4 million-barrel-per-day refinery.
Previous Trade: Reliance last received a Venezuelan shipment in May 2025, averaging 63,000 barrels per day, before US license suspensions halted the trade.
Current Efforts: Sources indicate Reliance representatives are actively engaged with both the US State and Treasury Departments to obtain the necessary approvals.
This behind-the-scenes corporate diplomacy underscores the real-world business interests aligning with Trump’s political pronouncements.
Global Implications and Market Stability
The potential reopening of Venezuelan oil to a major buyer like India carries wider implications:
For Venezuela: Access to the Indian market would provide a crucial economic lifeline, though proceeds would remain tightly controlled under US oversight. Trump recently claimed Venezuela would hand over 30-50 million barrels to the US, with sales proceeds managed “for the benefit” of both nations.
For Global Oil Flow: While Venezuela holds the world’s largest reserves, its current global supply contribution is minimal. Redirecting even a small volume to a large consumer can impact trade patterns and pricing in regional markets.
For India: Securing Venezuelan crude would enhance energy supply diversity. However, analysts caution any deal requires careful navigation of the complex US sanctions framework to avoid financial repercussions.
The Road Ahead
While Trump’s announcement suggests a finalized India Venezuela oil deal, implementation hinges on formal US approvals and official confirmation from New Delhi. The proactive steps by Reliance Industries indicate serious commercial intent. For now, the global energy market watches closely, as the intersection of geopolitics, sanctions policy, and corporate strategy continues to dictate the flow of the world’s most crucial commodity.
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