Trump's Russia sanctions waiver eases India's energy woes, lifts trade deal chances
INDA•Donald Trump waived Russia-related sanctions and tariffs that could have exposed Indian goods to tariffs of up to 100%. The move may ease India's energy concerns and improve the chances of a US-India trade deal, which Secretary of State Marco Rubio said was “very close.”
1. Sanctions waiver
Trump's executive order waived key Russia-related sanctions and tariffs, including penalties for buying Russian oil and gas, that were due to start this week under the Graham Act. Trump said the waiver was in the national interest of the United States. The legislation could have exposed Indian goods to tariffs of up to 100% because India is among the five largest importers of Russian oil.
2. Trade talks
Rubio said trade talks with India were among the considerations for the waiver and that the two countries were “very close” to finalising a deal. His two-day visit to India is due to include a meeting with Foreign Minister S. Jaishankar on energy, trade, investment and defence.
3. Energy and negotiations
Russia accounted for nearly half of India's oil imports earlier this year, but purchases fell in August and continue to decline. An analyst said pausing the sanctions could give the sides negotiating space to get past the “final hump.” Talks have also been held back by a pending US Section 301 investigation, while Indian trade officials said last week an agreement was nearly done.
