U.S. Envoy Sergio Gor confirmed active talks with India to replace Russian oil imports with Venezuelan crude, aiming to bolster energy diversification. The discussions follow India’s agreement to cut Russian oil purchases, which the U.S. says helps fund Moscow’s war in Ukraine. Under an interim trade deal, tariffs on Indian goods will drop to 18% by April, contingent on India abandoning Russian energy ties.

Gor stated the U.S. is “hoping to have some news very soon” on the oil transaction, which involves state-backed firms like Vitol and Trafigura securing Venezuelan supply after capturing President Maduro. Indian companies including Indian Oil Corp, Reliance Industries, and HPCL-Mittal Energy have already placed orders for Venezuelan barrels, per Reuters. The move aligns with U.S. efforts to isolate Russia’s energy sector post-2022 invasion, though India’s reliance on discounted Russian crude—now the world’s top seaborne buyer—has drawn Western criticism.

Negotiations hinge on finalizing terms for Venezuelan oil shipments and ensuring compliance with sanctions. If finalized, the deal could reshape global energy alliances and reduce India’s dependence on Moscow.