Active Negotiations on Venezuelan Oil Supply
The United States is in “active negotiation” with India over the sale of oil from Venezuela as part of efforts to help India diversify its crude oil sources, U.S. envoy Sergio Gor said on Friday in New Delhi. These talks involve officials from the U.S. Department of Energy and India’s Ministry of Energy, and both sides are hoping to announce developments “very soon.”
The discussions come at a time when India’s reliance on Russian crude has drawn criticism from Washington, which has pushed for a reduction in such imports amid ongoing sanctions against Russia.
“If Venezuelan oil is commercially viable, then we can explore buying oil from there.”
– MEA spokesperson Randhir Jaiswal pic.twitter.com/KAUrscrdmN
— News Arena India (@NewsArenaIndia) February 20, 2026
Link to Interim Trade Deal With the U.S.
The potential oil deal is tied to a broader interim trade agreement between the U.S. and India. Under this framework, President Donald Trump agreed to cut U.S. tariffs on Indian goods to 18% down from higher punitive rates, partly on the condition that India diversifies away from Russian oil. This agreement is expected to take effect in April, and a final, more comprehensive trade deal is anticipated soon, with both nations working out remaining details.
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Broader Energy and Strategic Context
India, the world’s third-largest oil importer, has already made moves to diversify supply, with state and private refiners placing initial orders for Venezuelan crude. The U.S. had issued licences to oil traders to market Venezuelan barrels after recent political developments in Venezuela. Both countries are also collaborating on initiatives such as Pax Silica, aimed at strengthening supply chains in key tech sectors, reflecting deeper economic and strategic ties beyond energy.
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