India will begin purchasing oil from Venezuela to replace some of the petrol it purchases from Russia a month after President Trump threatened to increase the 50% tariffs the US has already imposed.
The president signaled on Saturday that Delhi — the world’s third-biggest oil importer — would be open to renew business in Latin America after India stopped buying oil from Caracas last year due to US sanctions.
“We’ve already made that deal, the concept of the deal,” Trump told reporters.
The president did not elaborate further on what an oil deal between the US, Venezuela and India would entail.
While the president initially claimed that the deal would stop India from buying crude from Iran, Delhi had already stopped buying from Tehran in 2019 due to US sanctions.
Instead, India served as the top buyer of Russian oil, reaping in crude at a discount as Moscow faced heavy sanctions from the West over its invasion of Ukraine in 2022.
Trump had repeatedly warned India to stop purchasing Russian oil, slapping 50% tariffs on the country. He threatened to raise the rate again last month if India did not curb its purchases.
The president’s openness to strike a deal with Delhi stands in stark contrast with the months of tension between the US and the world’s largest democracy — with Treasury Secretary Scott Bessent signaling a more amicable relationship last month and suggesting the tariffs on India maybe removed.
Along with India, Trump suggested that he was open to a deal with Beijing on purchasing Venezuelan oil.
“China is welcome to come in and would make a great deal on oil,” Trump added.
Prior to Trump’s tariffs threats in August, China and India had accounting for a whopping 85% of Russia’s oil exports, according to the Center for Research on Energy and Clear Air.
If both countries are steered from purchasing Russian oil, it would greatly hamper Russia’s ability to wage war in Ukraine.
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