Not long ago, Venezuela featured prominently on India’s crude oil invoice. In FY2018, it supplied 6.7% of India’s crude imports, ranking among the country’s top six suppliers. Imports peaked at $7.2 billion in FY2019, driven by a strong commercial fit: Venezuela’s heavy, high-sulphur crude suited the complex refinery configurations of Indian refiners such as Indian Oil Corporation, Hindustan Petroleum, and Reliance Industries.

Sanctions outweighed cheap oil

That equation changed as US sanctions tightened on Venezuela’s oil sector. Compliance risks, payment hurdles, and legal exposure steadily outweighed the benefits of discounted heavy crude. Venezuela’s share plunged to 1.1% in FY2021, then fell to zero in FY2022 and FY2023.

A brief reopening followed partial sanctions easing in late 2023. Imports recovered to $802 million in FY2024 (0.6%) and $1.41 billion in FY2025 (1.0%), but Venezuela remained a mid-table supplier, far from its earlier prominence.

A fragile comeback, then another slide

The rebound proved short-lived. In FY2026 (April–October 2025), Venezuela’s share slipped again to 0.3%, imports fell to $255 million, and its rank dropped to 18th, signalling sporadic shipments and renewed uncertainty.

A structural break, not a cycle

While Indian firms like ONGC Videsh, IOC, and Oil India still hold legacy equity stakes in Venezuelan projects, trade flows remain hostage to sanctions policy rather than market fundamentals.

Bottom line: Venezuela’s vast reserves and refinery compatibility still matter—but without sustained, predictable sanctions relief, it is likely to remain an opportunistic supplier, not a core pillar of India’s oil sourcing strategy.