US President Donald Trump is expected to decide within 10 days whether to invoke sanctions provisions that could expose India and other purchasers of Russian oil and gas to tariffs of up to 100 per cent, US Ambassador to India Sergio Gor said on Thursday.
Speaking at the Bloomberg New Economy Forum in New Delhi, Gor said legislation approved by Congress empowered Trump to impose penalties on countries purchasing Russian energy or facilitating the circumvention of existing sanctions. He emphasised that the measures were not directed against any particular country.
The ambassador said Trump had not imposed sanctions on any country under the legislation and was required to make a determination within 30 days of its passage. He expected the White House to clarify its position shortly.
Gor described the legislation as an instrument intended to increase pressure on Moscow over the war in Ukraine rather than penalise countries maintaining energy relationships with Russia.
“The goal is not to punish anyone,” Gor said, explaining that Washington wanted to bring the conflict to an end.
His remarks offered some reassurance to New Delhi, although they left unresolved whether India could receive exemptions or face additional trade restrictions. Gor said any decision concerning sanctions relief would ultimately rest with Trump.
The legislation, known as the Sanctioning Russia and Iran Act of 2026, provides for substantial tariffs against countries engaging in specified transactions involving Russian energy. Gor said it had attracted overwhelming bipartisan support, securing 86 votes in the 100-member US Senate.
The potential penalties have attracted attention because India remains an important purchaser of Russian crude. Any additional tariffs could complicate energy procurement decisions and commercial relations between Washington and New Delhi.
Gor nevertheless indicated that Washington did not expect countries purchasing Russian petroleum to terminate their imports immediately. He presented the sanctions framework as part of a broader diplomatic effort to influence Russia’s conduct.
The distinction between possessing sanctions authority and exercising it remains important. Although the legislation establishes mechanisms for punitive measures, their application depends on presidential determinations and the relevant statutory provisions.
New Delhi has raised concerns about the possible consequences of the legislation for bilateral relations and international energy markets. Foreign Secretary Vikram Misri conveyed those concerns during discussions with a bipartisan congressional delegation visiting India.
The uncertainty comes as Washington and New Delhi pursue negotiations intended to resolve outstanding trade disagreements and establish a broader commercial agreement.
Gor said substantial progress had been achieved in those negotiations, with the principal issues largely settled and officials working through the remaining details.
“We are very close to landing it,” he said, expressing confidence that both governments would conclude the agreement.
The ambassador characterised the pace of negotiations as exceptionally fast, although he acknowledged the complexity of reconciling the commercial interests of two large economies.
Discussions have involved tariff rates across thousands of products, requiring negotiators to address sector-specific concerns while developing an agreement acceptable to both governments.
Commerce and Industry Minister Piyush Goyal separately indicated that the first phase of the bilateral trade agreement had been finalised and was undergoing legal drafting.
The progress on trade provides a potentially important diplomatic backdrop to Trump’s forthcoming sanctions determination. Nevertheless, Gor did not announce any exemption for India or establish a formal connection between the negotiations and the sanctions decision.
The ambassador also reaffirmed Washington’s interest in strengthening economic engagement with India, describing the country as a trusted partner and identifying closer commercial cooperation as a priority.
His comments preceded a scheduled visit by US Secretary of State Marco Rubio, whose engagements are expected to include discussions with government representatives and business leaders.
Rubio’s programme is expected to cover commercial opportunities and broader bilateral cooperation at a time when energy security, market access and geopolitical disagreements remain prominent concerns.
Gor highlighted opportunities for American businesses in India’s expanding technology sector, including investments in data centres and semiconductor manufacturing.
He also identified defence, information technology and artificial intelligence as areas where cooperation could strengthen economic links between the two countries.
The ambassador argued that investment and employment generated through commercial partnerships could benefit both economies, reinforcing Washington’s interest in maintaining engagement despite unresolved trade questions.
The forum, held in New Delhi from October 13 to 15, brought together government representatives, business executives and policymakers to discuss international economic challenges, investment priorities and changing geopolitical relationships.
