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Relief for India as Trump waives Russia sanctions

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In a major relief for India and China, US President Donald Trump has waived sanctions and tariffs linked to the purchase of Russian crude oil.The move was announced on Friday, a day before the legislation Lindsey O Graham Sanctioning Russia and Iran Act of 2026 was to take effect. According to Trump, the pause has been imposed in the “national interest”.Significantly, Trump’s move comes a week after he spoke to Russian President Vladimir Putin over the phone and then announced a deal to obtain almost 3.8 million tonnes of diesel from Russia, a stunning reversal of years of US pressure on Moscow over its war with Ukraine.Trump has, of late, been seen warming up towards Russia as he publicly criticised Ukrainian President Volodymyr Zelenskyy, even suggesting that Ukraine “needed a new leader”.The US legislation providing for sanctions and tariffs linked to purchase of Russian crude had led India to take a stance that it would continue sourcing oil from Moscow to maintain energy security.With Prime Minister Narendra Modi possibly headed to the US in December, the waiver could pave the way for a long-negotiated trade deal between the two countries.The White House posted details of Trump’s decision, which said, “I am hereby waiving the application of such sanctions, restrictions and duties provided for in the Graham Act.”“I have submitted to Congress a certification that the issuance of such a waiver at this time is in the national interest of the US,” Trump said in an executive order released late Friday. However, the directive only suspended implementation of the Russia-related tariffs, meaning Trump could apply these later if he chose to do so.The new law empowers Trump to impose 100 per cent tariffs on all goods from the top five buyers of Russian crude—China, India, Slovakia, Hungary and Azerbaijan—and also slap sanctions on numerous Russian entities and impose tariffs of up to 500 per cent on all Russian goods imported into the US.The legislation sought to reduce the financial resources sustaining Russia’s banks and energy interests, and foreign entities supporting its military operations in Ukraine. If Trump had levied 100 per cent tariffs on India, it would have strained ties further. The two nations have had disagreements over trade-related tariffs, New Delhi’s ties with Russia and Trump’s insistence that he stopped a nuclear war between India and Pakistan.After the US Congress passed the Russia-Iran sanctions Bill last month, India had made it clear that it was determined to take all necessary measures to protect its trade and economic interests.The Ministry of External Affairs had said, “As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and based on evolving market dynamics.”The MEA had also said that the issue of India’s oil trade with Russia had been discussed at high levels in recent months with various US interlocutors. “Its potential implications for not just the bilateral relationship, but also the international energy market have been very clearly articulated by the Indian side,” it had said.

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