President Trump’s masterful sanctions strategy forces India to ditch Russian oil for Venezuelan crude.
Story Highlights
- Reliance Industries secured U.S. license on February 13, 2026, enabling direct Venezuelan oil purchases after buying 2 million barrels from Vitol.
- Indian refiners IOC and HPCL jointly purchase 2 million barrels of Venezuelan Merey crude, signaling a broad shift away from Russia.
- Trump removes 25% tariff on India following the 2025 trade deal committing New Delhi to end Russian oil imports, both direct and indirect.
- The U.S. captures Maduro in early February 2026, eases sanctions to support a $2 billion oil deal and $100 billion Venezuelan reconstruction.
Trump’s Decisive License to Reliance
Reliance Industries, India’s largest private refiner with 1.4 million barrels per day capacity, applied for a U.S. general license in early January 2026. The U.S. granted it on February 13, 2026, allowing direct Venezuelan oil purchases without sanctions violations. This followed Reliance’s early February purchase of 2 million barrels from trader Vitol. The move replaces discounted Russian crude India imported at 1 million barrels daily as of February 2026. Trump’s policy prioritizes American allies, sidelining adversaries like Russia.
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Multiple Indian Refiners Pivot from Russia
Indian Oil Corp. and Hindustan Petroleum Corp. jointly bought 2 million barrels of Venezuelan Merey crude in February 2026. Deliveries head to IOC’s Paradip refinery and HPCL’s Visakhapatnam plant. The Indian government directed refiners to prioritize U.S. and Venezuelan crude in spot market tenders. Refinery executives confirm buyers avoid Russian oil for April delivery and beyond. This aligns with energy security while complying with U.S. trade terms that removed the 25% tariff imposed in August 2025.
U.S. Strategy Weakens Russia, Empowers Partners
The Trump administration captured Venezuelan President Nicolas Maduro in early February 2026, then eased energy sanctions. This facilitates a $2 billion oil supply deal with Caracas and a $100 billion reconstruction plan. Traders Vitol and Trafigura received U.S. licenses to market Venezuelan oil. The White House confirmed India committed to stop direct and indirect Russian oil imports via the 2025 trade deal. Russia faces rapid revenue loss of about 642,000 barrels per day from India, more than half its prior exports there.
Geopolitical Wins Against Russia and China
U.S. policy redirects Indian imports from Russia to U.S. and Venezuelan sources, excluding China from Venezuelan oil China previously accessed. Asia Times notes this facilitates rapid Russian oil reduction in India, potentially to zero. Indian officials stress energy diversification as paramount, gaining discounted Venezuelan heavy crude to cut refining costs. Russia loses geopolitical influence; Venezuela restores exports post-Maduro. Trump strengthens U.S.-India ties, limits adversaries’ revenues funding aggression.
India maintains ambiguity on a full Russian oil ban, with its Foreign Ministry emphasizing supply diversification without explicit confirmation. Sources indicate refiners avoid Russian crude gradually. The U.S. monitors compliance as a tariff removal condition. This realignment enhances India’s supply resilience while advancing American interests in countering Russian energy leverage and Chinese expansion.
Sources:
India’s Reliance Wins US Licence for Venezuelan Oil; Sources Say
India Shifts Oil Purchases to US and Venezuela Following 2025 Trade Deal
India Shifts Oil Purchases to US and Venezuela Following 2025 Trade Deal
US Paving Way for India’s Shift from Russia to Venezuela Oil
More Indian Refiners Take Venezuelan Oil
Indian Refiners Urged to Buy More US and Venezuela Oil
BR International Trade Report February 2026
