Washington: The United States is reassessing the economic consequences of imposing new penalties on Russia and countries purchasing its energy supplies, with India emerging as a key consideration in the policy debate. US Secretary of State Marco Rubio said President Donald Trump wants to use a 60-day period to evaluate the potential effects on the American economy and global markets.
The review follows Trump’s decision to waive key sanctions and tariff provisions under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The legislation provides for penalties against Russia and tariffs of up to 100% on goods from certain countries that continue purchasing Russian oil and natural gas. India could be affected because Russian crude remains an important component of its energy imports.
Speaking before travelling to Uzbekistan and India, Rubio acknowledged that New Delhi could not easily replace Russian energy supplies overnight. He also stressed the importance of the India-US partnership, indicating that energy security, international market conditions and bilateral relations would all be relevant to Washington’s assessment.
India increased its purchases of discounted Russian crude after Western countries imposed sanctions following Russia’s invasion of Ukraine in 2022. The imports helped Indian refiners manage energy costs, although New Delhi has maintained that its purchasing decisions are guided by national energy security and changing market conditions.
India’s Ministry of External Affairs has previously stated that the country will continue diversifying its energy sources while protecting its economic and trade interests. The coming weeks will be important as Washington assesses the consequences of its policy options and their potential implications for energy markets and relations with India.
