A decision by President Donald Trump to suspend certain sanctions provisions related to Russian energy commerce opens a pathway for India to avoid the threat of elevated tariffs on its goods entering American markets, given its purchases of Russian crude oil and natural gas.

Before the decision was taken, India had conveyed objections to Washington about a proposed piece of legislation — the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 — whose terms included the possibility of tariffs of up to 100 percent on goods exported by whichever five countries bought the highest volumes of Russian energy, a grouping in which both India and China would fall. The waiver was put in place roughly a month after the legislation received Trump's signature.

The development follows a fuel supply arrangement between the two governments and a period of climbing diesel costs domestically, with the November midterm elections drawing near.

One concrete outcome for India centres on avoiding the prospect of additional US tariffs tied to its energy purchases from Russia. Under the terms of the bill, the president would have had the authority to deploy tariffs reaching as high as 100 percent on goods from the five nations purchasing the greatest volumes of Russian-origin crude oil or natural gas. Duties of that kind, had they taken effect, would have raised the cost of Indian goods entering the American market and strained the broader trading relationship between the two nations.

Under Section 115 of the Graham Act, a waiver authority exists that permits the president to set aside particular sanctions provisions, restrictions tied to foreign nationals, and related legal obligations. Sections 112 and 113 — provisions that had authorised tariff rates reaching as high as 500 percent on Russian-origin goods and up to 100 percent on products from the five countries importing the most Russian energy — were also rendered without effect through the waiver.

In the order, Trump indicated that a waiver certification had been submitted to Congress attesting that issuance served the national interests of the United States, along with a supporting report laying out the basis for that certification in keeping with Section 115(b) of the Graham Act. India had separately conveyed to Washington its reservations about the Sanctioning Russia and Iran Act, pointing to the potential effect of the legislation on its trade relationship with Moscow.

Tariff exposure tied to those purchases eases under the waiver, though broader trade advantages are not assured by that move, nor does it foreclose additional measures from the US side.

A statement from India's Ministry of External Affairs on Wednesday addressed the country's position on maintaining stability in worldwide energy supply chains, issued in the context of the recently announced diesel arrangement between the United States and Russia. Foreign ministry spokesperson Randhir Jaiswal declined to comment on the commercial terms of the fuel arrangement between Russia and the United States, noting only that India has consistently supported stability in global energy markets, while separately confirming that New Delhi had formally conveyed to Washington its reservations about the SRIA legislation.

The agreement — described by Trump as involving an initial transfer of more than 300,000 tonnes of diesel, a further 500,000 tonnes in November, and one million tonnes in the period immediately following — was characterised by Trump as a notable development, with Russian President Vladimir Putin acknowledged for agreeing to the supply terms. A post on Truth Social stated that an additional three million tonnes could arrive within a brief window, contingent on the operational state of Russia's diesel refining infrastructure.

The waiver's concrete outcome for India was the removal of the threat of punitive tariffs on Russian energy purchases. The extent of the law's reach will turn on the implementation choices made in Washington and on whether additional trade actions follow.