India Eyes Venezuela to Strengthen Energy Security Amid Global Supply Risks

Since the outbreak of the Ukraine conflict in 2022, discounted Russian crude oil has significantly altered India's import basket, making Moscow the country's largest oil supplier. Indian refiners took advantage of lower prices resulting from Western sanctions on Russia, leading to record purchases and a dramatic shift in India's energy procurement strategy.

However, recent instability in West Asia, uncertainty surrounding sanctions, and disruptions affecting critical maritime corridors have highlighted the risks of excessive dependence on any single supplier or region. The situation has become particularly significant due to the ongoing conflict involving Iran and the wider West Asia region, which has severely impacted oil supplies moving through the Strait of Hormuz.

Before the current crisis, nearly 40 percent of India's crude oil imports passed through the Strait of Hormuz, one of the world's most important energy chokepoints. Concerns over disruptions along this route have intensified India's search for alternative and more diversified sources of crude oil.

India currently imports approximately 90 percent of its crude oil requirements, making energy dependence one of the country's most significant strategic vulnerabilities. Traditionally, the majority of these imports originated from Middle Eastern producers such as Iraq, Saudi Arabia, and the United Arab Emirates.

Against this backdrop, Venezuela has emerged as an increasingly important partner. According to Reuters, India became the second-largest importer of Venezuelan crude oil in May, purchasing approximately 427,000 barrels per day. Venezuela possesses the world's largest proven oil reserves, while India represents one of the fastest-growing and most consistent sources of demand.

Market analysts argue that Venezuela should not be viewed as a replacement for Russian oil. Instead, it is being considered as part of a broader diversification strategy. Russian crude remains economically attractive and continues to be highly compatible with the operational requirements of Indian refineries.

Recent geopolitical crises have reinforced India's understanding that excessive dependence on any single region—whether the Gulf states or Russia—can create significant strategic risks. Expanding energy cooperation with Venezuela is expected to enhance India's bargaining power, improve supply resilience, and strengthen its ability to navigate an increasingly uncertain global energy environment.

The evolving engagement between India and Venezuela reflects a larger shift in New Delhi's energy strategy, aimed at balancing affordability, security, and diversification while safeguarding the country's long-term economic and energy interests.