New Delhi: Venezuela’s share in India’s crude oil imports has fallen to 0.3 per cent in FY2026 (April–October 2025) from 6.7 per cent in FY2018, marking a sharp contraction in a trade relationship that once placed the South American country among India’s key oil suppliers, according to Rubix Data Science’s report “Venezuela’s Role in India’s Crude Oil Imports: Trend Analysis”.
When Venezuela was a major supplier
Between FY2018 and FY2020, Venezuela consistently ranked among India’s top six crude suppliers. Its share in India’s crude basket ranged between 5.9 per cent and 6.7 per cent, and imports peaked at $7.2 billion in FY2019. Venezuelan crude, largely heavy and high-sulphur, suited Indian refineries equipped with complex processing units, allowing refiners to extract value from discounted grades.
The sanctions shock
This relationship weakened sharply from FY2021, when Venezuela’s share fell to 1.1 per cent, before imports dropped to zero in FY2022 and FY2023. The report links this collapse to US sanctions on Venezuela’s oil sector, which made transactions difficult for Indian refiners due to compliance risks, shipping constraints and payment challenges. Despite technical compatibility, refiners stepped back as sanctions tightened.
A short-lived revival
Imports resumed in FY2024, following partial easing of sanctions in late 2023. Venezuela’s share recovered to 0.6 per cent, with imports valued at $802 million. The rebound strengthened in FY2025, when imports rose to $1.41 billion, lifting Venezuela’s share to 1.0 per cent and placing it at 11th position among India’s crude suppliers.
However, the recovery did not sustain. In FY2026 (April–October), imports declined again to $255 million, pulling Venezuela’s share down to 0.3 per cent and its rank to 18th in India’s supplier list.
Structural shift, not a temporary dip
Rubix Data Science characterises this decline as structural rather than cyclical. While sanctions relief briefly reopened trade, the absence of policy certainty has limited long-term engagement. India’s crude sourcing has diversified further towards West Asia, Russia and the US, reducing dependence on politically sensitive suppliers.
Investment links that remain
Even as crude imports have dwindled, Indian investments in Venezuela continue. ONGC Videsh holds stakes in two oil projects, while Indian Oil Corporation and Oil India have minority participation in heavy-oil ventures alongside ONGC Videsh. Private refiners such as Reliance Industries, Nayara Energy and MRPL have historically processed Venezuelan crude, keeping limited commercial links alive.
What lies ahead
The report notes that Venezuela has reached out to India to attract investment in minerals such as lithium, nickel and rare earth elements. However, it underlines that any revival in oil trade or expansion of investment will depend on clarity around US sanctions and the political framework governing Venezuela’s energy sector.
For now, the data shows that Venezuela’s once-significant role in India’s crude oil imports has narrowed to a marginal presence, shaped less by market economics and more by geopolitics.
