Russia vs Venezuela: Whose Oil Reaches India Faster And Which Crude Is Better?

Last Updated:February 04, 2026, 15:11 IST

The US has announced a cut in tariffs on Indian goods from 50% to 18%, contingent upon India's commitment to halt purchases of Russian crude oil

Oil refiners such as Reliance Industries and Nayara Energy have invested in complex processing units capable of handling heavy sour crude.

In a significant development on the global energy map, India now finds itself balancing between two major crude suppliers, Russia, its traditional “neighbour-like" source with rapid shipments, and Venezuela, a geographically distant but politically promoted alternative. The shift comes amid evolving trade negotiations with the United States, which has linked tariff relief to a reduction in Russian oil purchases.

Under the emerging pact, the United States has announced a cut in tariffs on Indian goods from 50% to 18%, contingent upon India’s commitment to halt purchases of Russian crude and explore other sources, including Venezuelan oil. While Indian officials have acknowledged ongoing discussions, final policy decisions on volumes and contracts are yet to be formalised.

The Logistics of Oil Movement

Russia’s proximity has historically given it an edge in supply logistics. Russian tankers traversing the Far East route from Vladivostok can reach Indian refineries in approximately 24 days, while the longer Suez Canal route averages 35-40 days, making it a quick and relatively cost-efficient supplier.

In contrast, Venezuelan crude must cross the Atlantic and Indian Ocean, requiring at least 45-50 days at sea, nearly double the transit time from Russia. This extended pattern adds to logistical costs and underscores the geographic challenge of diversifying crude sources.

Vessel Capacity and Supply Dynamics

Russian exports often use medium-sized Aframax or Suezmax tankers capable of transporting around 7,00,000-10,00,000 barrels per voyage, reflecting the shorter routes and frequent dispatches. Venezuelan cargoes, due to longer distances and economies of scale, are typically loaded onto Very Large Crude Carriers (VLCCs), each capable of delivering up to roughly 20 lakh barrels of oil in a single run.

It means that a single Venezuelan VLCC can convey almost as much crude as two standard Russian tankers combined, partially compensating for the longer journey.

Crude Quality

Industry analysts differentiate the supply from the two sources based on geological characteristics, which determine refining behaviour and end‐product yields:

Russian crude is generally lighter and sweeter, containing fewer impurities, a feature that makes it easier and cheaper to refine into petrol, diesel, and aviation fuel.

Venezuelan crude, by contrast, is heavier and more viscous, with higher sulphur content and greater processing complexity. Despite this, its lower purchase price can make it an attractive feedstock for sophisticated refineries.

Refiners such as Reliance Industries and Nayara Energy have invested in complex processing units capable of handling heavy sour crude, enabling them to extract high-value fuels even from challenging grades.

Where Crude Is Unloaded

India’s diverse coastal infrastructure distributes incoming oil to match refinery capabilities:

The Policy Equation

Energy experts caution that while Venezuelan crude’s delayed arrival and heavier quality pose operational considerations, the broader strategic calculus extends beyond oil alone.

By diversifying its crude basket and reducing reliance on Russian supplies, India stands to unlock substantial tariff relief on millions of dollars’ worth of exports, spanning textiles, IT services, steel and other sectors, to the United States. That economic benefit, proponents argue, could outweigh the incremental costs associated with logistical complexity or processing challenges.

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