US Offers India Energy Diversification Amid New Russia Sanctions Law
The US says it wants to expand energy supplies to India as New Delhi diversifies imports amid uncertainty over Washington’s new Russia sanctions law.
The United States has said it wants to become a larger energy supplier to India as New Delhi looks to diversify its sources amid uncertainty created by Washington’s new Russia sanctions law. A senior State Department official said India’s large and growing energy requirements make diversification increasingly important.
The Lindsey O. Graham Sanctioning Russia and Iran Act, signed by US President Donald Trump on September 18, gives the administration authority to impose tariffs of up to 100% on countries that continue significant purchases of Russian oil and gas. The law does not automatically impose such tariffs on India and includes provisions allowing presidential waivers under certain circumstances.
The US official said Washington understands India’s concerns and described the legislation as another option available to Trump. The official also said the US is seeking to expand its role as an energy supplier, including through higher hydrocarbon exports and access to LNG and LPG.
India has already been reducing its dependence on Russian crude. Russian oil imports fell in August, while Indian refiners increased purchases from other suppliers, including Iraq and countries in the Middle East.
The developments come as India balances energy security, supply costs and its relations with major trading partners. How Washington implements the new sanctions law will determine the extent of pressure on Indian energy purchases and trade ties.
