India has received temporary relief from the threat of steep US tariffs linked to its purchases of Russian oil after President Donald Trump suspended key provisions of a new Russia sanctions law.
According to reports citing an executive order signed by Trump on Friday, the US administration has waived strict measures under the proposed Lindsey Graham Sanctioning Russia and Iran Act. The measures included tariffs of up to 500% on Russian goods and up to 100% on products from the five largest buyers of Russian oil and gas, including India.
Trump informed Congress that the waiver was in the US national interest. The exemption will remain in place until the President or the Secretary of State takes a fresh decision. This means the tariff threat has been suspended, not permanently removed. Existing US sanctions against Russia remain in force.
The move came around a week after a reported diesel supply agreement involving Russia on October 9. India had earlier raised concerns with the US over the proposed legislation, according to reports.
The immediate impact on Indian fuel prices, exports and financial markets remains uncertain. Any effect will depend on future policy decisions, global oil prices and market conditions.
As of the latest reports cited, the Indian government had not issued a response to the waiver. Further clarification from New Delhi and the White House is awaited.
