NEW DELHI: The United States has acknowledged that it would be difficult for India to immediately reduce its dependence on Russian energy, as President Donald Trump allows a 60 day period to assess the economic consequences of proposed sanctions and tariffs targeting countries purchasing Russian oil.
US Secretary of State Marco Rubio said the administration needed time to examine how the proposed measures would affect global markets and the American economy. He noted that India had diversified its energy sources but continued to purchase substantial quantities of Russian oil because shifting suppliers could not happen overnight.
Trump has waived sanctions and tariffs under the proposed Sanctioning Russia and Iran Act, which could impose tariffs of up to 100 per cent on imports from major purchasers of Russian oil and natural gas, including India and China. The waiver was granted on national interest grounds, allowing the administration additional time to evaluate the consequences of implementing the measures.
Rubio said the proposed legislation involved more than restrictions on Russia, as it could also affect several countries that maintain energy trade with Moscow. He stressed that Washington needed to weigh the potential economic impact against its broader strategic relationships and international developments.
The decision comes amid pressure on global energy supplies linked to geopolitical tensions, including the Russia Ukraine conflict and instability in the Middle East. Rising uncertainty in energy markets has also increased concerns over fuel prices.
India significantly increased its purchases of Russian crude after Moscow launched its invasion of Ukraine in February 2022. Western sanctions and restrictions prompted several traditional buyers to reduce imports, allowing Russia to redirect discounted oil shipments towards Asian markets.
The discounted supplies made Russian crude attractive to Indian refiners, helping reduce procurement costs and support the country’s energy security. Russia subsequently became one of India’s leading oil suppliers, accounting for a substantial share of its crude imports.
India has repeatedly maintained that securing affordable and reliable energy for its population remains a priority. The government has also emphasised that its sourcing decisions are guided by market conditions and the need to diversify supplies.
The US waiver provides additional time for Washington to assess its approach, while highlighting the economic and diplomatic challenges involved in restricting Russian energy exports without disrupting international markets or relations with key partners such as India.
