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COVER STORY OCTOBER 23, 2026 | The Indian Eye 5

On Friday, Trump waived certain ments that both sides consider fair.
sanctions and tariff provisions under For Washington, however, cor-
the Lindsey O. Graham Sanctioning porate deals may be a way to main-
Russia and Iran Act. The legislation tain momentum even when trade
would have permitted tariffs of up to negotiations stall. A large investment
100 per cent on imports from the five by an Indian company in the United
largest buyers of Russian-origin crude States would demonstrate that eco-
oil or natural gas, including India and nomic ties can deepen despite polit-
China. The waiver has opened a 60- ical disagreements. It could also give
day period for the administration to the administration a tangible success
assess the consequences of imple- to showcase without requiring an im-
menting the measures. mediate compromise on tariffs.
Rubio defended the pause by Sachdev captured this distinction
emphasising India’s importance to when he suggested that Washington
Washington and the difficulty of was separating corporate transac-
rapidly replacing Russian supplies. tions from the strategic relationship.
“These sanctions were not just sanc- The sanctions on Russian oil and the stalled trade deal has put India-US relations under “It seems that America is now
tions on Russia. They include tariffs strain (ANI file photo) adopting a stance or a position of
on a number of countries—India, for engaging with India in terms of cor-
example, and others,” he said. porate deals,” he said. “The strategic
He added that Trump wanted dia gets preferential treatment,” Sikri ing energy, trade, investment, defence component is there, no doubt, and a
time to assess the implications for the told ANI. and critical emerging technologies. strategic partnership is there, as Min-
global and US economies. “You’ve The trade deal remains the real MEA spokesperson Randhir Jaiswal ister Jaishankar also says, but to me,
got countries like India, for example, test said the visit would allow both sides it seems that America is emphasising
that have voluntarily diversified their to review relations and explore ways more on business and corporate deals
energy portfolio, but are still getting he visit’s broader significance to strengthen their partnership. with India.”
a substantial amount of energy from will depend on whether it pro- “The visit will provide an oppor- Diplomacy under pressure
Russia because it’s hard to pivot from Tduces movement on the trade tunity to sustain the high-level en-
one day to the next. But they’re also negotiations. A refinery announce- gagement between the two countries ubio will also have to address
an important ally and partner of the ment could generate headlines and and advance our shared priorities,” regional and global issues with
United States.” demonstrate corporate confidence, he said. RJaishankar, including the wars
The statement is significant be- but it would not resolve the under- Such language reflects the diplo- in Ukraine and West Asia and their
cause it acknowledges the limits of lying disagreements over tariffs and matic imperative to prevent disagree- implications for energy security. His
Washington’s coercive approach. In- market access. ments from overwhelming coopera- discussions with Indian officials will
dia can diversify its energy sources, The two governments have pub- tion. Yet the challenge is to translate therefore extend beyond commercial
but a rapid transition away from Rus- licly identified a wide agenda, includ- repeated assurances into arrange- interests, even if the business dimen-
sian supplies carries commercial costs sion dominates the visit’s immediate
and implications for energy security. political calculations.
Punitive tariffs on Indian goods could The timing also gives both sides
also affect American businesses and an opportunity to prevent the cur-
consumers, making the policy more rent disagreements from becoming a
complicated than a straightforward more durable rupture. India remains
attempt to isolate Moscow. an important partner for the United
Rubio cited pressure on glob- States in the Indo-Pacific and in co-
al supplies arising from the war in operation on defence and emerging
Ukraine, attacks on energy infra- technologies. But the partnership
structure and instability in West Asia, cannot be insulated indefinitely from
including attacks by Yemen’s Houthi disputes over trade and energy.
militia on Saudi Arabia. Such disrup- The next few weeks will reveal
tions, he argued, were contributing to whether the 60-day pause on sanc-
pressure on global energy prices. tions becomes the basis for a more
For India, the episode reinforces sustainable accommodation or mere-
concerns about the unpredictability ly postpones another confrontation.
of American economic policy. Even Progress on the Reliance project
when Washington recognises the could provide a welcome headline,
costs of sanctions, the possibility of but the more difficult test will be
renewed tariffs remains a source of whether Washington and New Delhi
uncertainty for exporters and inves- can reach mutually acceptable terms
tors. on trade and manage their differing
Former diplomat Veena Sikri approaches to Russian energy.
described the developments as part The relationship’s future will de-
of wider negotiations over energy pend on whether both governments
and trade. She said India was watch- can move beyond transactional wins
ing the situation carefully and main- towards a more predictable partner-
tained that the terms of any trade US Secretary of State Marco Rubio, along with his wife, Jeanette D. Rubio, and US Ambas- ship. A refinery deal may help keep the
agreement would be crucial. sador to India Sergio Gor, during their visit to Amber Fort, in Jaipur in May last year (@ engagement alive. It will not, by itself,
“We’ve said very clearly that we USAmbIndia X/ANI Photo) settle the disputes that brought Rubio
will not sign the trade deal until In- to India at such a sensitive moment.

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