New Delhi is assessing the implications of Trump’s agreement with Russian President Vladimir Putin, particularly whether Washington will create exemptions for its own energy purchases while maintaining restrictions against major importers of Russian crude.
The review comes as the Trump administration has yet to announce a definitive decision on granting India a waiver under the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, known as SRIA.
The legislation, signed by Trump in September, authorises additional tariffs of up to 100 per cent on goods from countries identified as leading purchasers of Russian oil and gas. India remains among the principal countries potentially affected.
Trump announced on Friday that Russia would immediately supply more than 300,000 tonnes of diesel to American and international markets following discussions with Putin. Additional supplies are expected as Washington attempts to contain escalating fuel prices.
The arrangement envisages another 500,000 tonnes in November, followed by one million tonnes shortly afterwards. Trump also outlined the possibility of a further three million tonnes, depending on Russian refinery conditions.
The US Treasury has issued a temporary authorisation permitting specified transactions involving Russian diesel until April 2027. The measure provides a legal mechanism for facilitating supplies without removing the broader sanctions framework against Moscow.
That distinction is central to New Delhi’s assessment. American restrictions on Russian energy purchases and the administration’s authority to issue exemptions operate through different legal provisions, leaving considerable discretion over enforcement.
The sanctions legislation does not automatically impose maximum tariffs on every country purchasing Russian energy. Its provisions establish conditions for additional duties while allowing presidential waivers based on specified national interest considerations.
India has already conveyed its objections to Washington, warning that punitive measures against its energy purchases could damage bilateral relations and undermine efforts to strengthen economic cooperation.
External Affairs Minister S Jaishankar raised concerns about the legislation during discussions with US Secretary of State Marco Rubio on the sidelines of the United Nations General Assembly in September.
The Ministry of External Affairs has maintained that protecting energy security for India’s population of 1.4 billion remains a priority. New Delhi has also emphasised the importance of affordable and reliable supplies amid disruptions affecting international markets.
Trump’s latest arrangement has complicated Washington’s argument that purchases of Russian petroleum provide Moscow with revenue supporting its military operations in Ukraine.
However, the American administration maintains that facilitating additional diesel supplies is necessary to address domestic fuel shortages and rising transportation costs.
Trump has linked the agreement to efforts to lower prices for farmers, truck operators and consumers. Diesel costs have risen sharply amid disruptions to energy shipments through the Strait of Hormuz and attacks affecting Russian petroleum infrastructure.
The president has expressed confidence that additional Russian supplies will help reduce prices, although energy analysts have questioned whether the announced volumes can significantly influence a market facing broader supply constraints.
The agreement has also encountered opposition within the United States. Republican and Democratic senators have challenged the decision, arguing that renewed energy purchases risk weakening sanctions intended to restrict Moscow’s revenues.
Several lawmakers have urged the administration to reverse course and explain how the arrangement complies with existing restrictions on Russian petroleum imports.
The controversy adds another complication to trade negotiations between New Delhi and Washington, which have faced disagreements over tariffs, market access and energy policy.
India’s substantial dependence on imported crude makes restrictions on Russian supplies commercially significant. Refiners have relied on Russian shipments to diversify procurement and manage costs during periods of volatility.
The administration’s handling of exemptions could therefore influence both refinery purchasing decisions and wider trade discussions.
Prime Minister Narendra Modi and Trump spoke on September 30, but their conversation produced no publicly announced resolution concerning possible sanctions waivers.
The sanctions legislation also targets Russian financial institutions, energy networks and vessels associated with efforts to circumvent restrictions. Its provisions give Washington additional instruments to pursue entities supporting Moscow’s petroleum exports.
Meanwhile, the US Treasury’s temporary diesel authorisation remains limited in scope and does not constitute a general lifting of sanctions on Russian crude oil transactions or other restricted activities.
