US Secretary of State Marco Rubio has said India would need time to reduce its dependence on Russian energy imports, despite diversifying its sources of supply, as Washington reviews the potential economic impact of sanctions and tariffs targeting countries that buy Russian oil and gas.
Rubio described India as an important ally and partner of the United States, while acknowledging that New Delhi continues to obtain a substantial amount of energy from Russia. He said it would be difficult for India to change its sourcing arrangements overnight.
His remarks came after US President Donald Trump issued an executive order on Friday deferring certain Russia-related sanctions that could have exposed India and four other countries to steep tariffs over their purchases of Russian energy.
Rubio says Washington needs 60 days to assess impact
Rubio said the proposed measures could affect not only Russia but also countries that continue to purchase its energy, including India. The administration wants to use the 60-day period to assess the consequences of imposing sanctions and tariffs on the global economy and the US economy.
“The problem is that they include tariffs on a number of countries, India, for example, and others,” Rubio said, explaining the rationale behind the pause.
He added that countries such as India had voluntarily diversified their energy portfolios but continued to import significant quantities of Russian energy because shifting suppliers could not happen immediately.
“But they're (India) also an important ally and partner of the United States. So the president, we need that period of time to sort of study all this and figure out what the right combination is,” Rubio said.
The pause gives Washington additional time to determine how best to apply economic pressure on Russia without creating unintended consequences for its trading partners or the US economy.
Law could impose tariffs of up to 100% on India
Trump invoked Section 115, the waiver provision of the Lindsey O. Graham Sanctioning Russia and Iran Act, which gives the US President the authority to defer certain measures on national-interest grounds.
The law provides for tariffs of up to 500% on Russian exports to the United States and up to 100% on imports from the five largest purchasers of Russian oil and gas that help Moscow evade sanctions, subject to the law's conditions and presidential waivers.
India, China, Azerbaijan, Slovakia and Hungary were identified as the five countries potentially exposed to the 100% tariffs because of their purchases of Russian energy.
However, the latest decision has deferred the secondary sanctions rather than permanently removing the threat. Trump remains free to reconsider the measures and use the law against the countries concerned, subject to its provisions.
The legislation also provides for additional sanctions targeting Russian financial institutions and their international partners, with the broader aim of pressuring Moscow to end its war against Ukraine.
Trump announces Russian diesel supply deal
The decision to waive certain sanctions targeting Russia and its economic partners also followed Trump's announcement of an agreement with Moscow to increase diesel supplies.
Trump said he had reached the agreement to obtain diesel from Russia during a telephone conversation. According to his announcement, Russia would immediately supply more than 300,000 tonnes of diesel, followed by another 500,000 tonnes in November and 1 million tonnes “immediately thereafter”.
Trump also said Russia would deliver a further 3 million tonnes “within a short period of time”.
The announcement came ahead of the US midterm elections on November 3, in which Trump's Republican Party is widely expected to face a difficult electoral contest.
The diesel arrangement represents a conciliatory move towards Moscow even as Washington seeks to use sanctions and tariffs to pressure Russia over its war in Ukraine. The temporary easing of certain restrictions has also raised questions about how the administration intends to balance domestic fuel supplies, relations with India and other energy-importing countries, and its broader sanctions policy.