Industry Odisha Bureau, Sep 26: Piyush Goyal visits the US next week as sanctions legislation targets Russian energy buyers. New Delhi stresses energy security. India-US trade talks may also feature.
India’s purchases of Russian oil are emerging as a test for India-US economic diplomacy. Commerce Minister Piyush Goyal is expected in the United States next week. His engagements coincide with the G20 Trade Ministers’ meeting in Milwaukee.
Sources expect talks with US officials to centre on new sanctions legislation. The law targets major buyers of Russian energy. The backdrop shifted after Washington extended its tariff truce with China.
US-China Trade Truce Shifts Attention to India
The US and China have extended their Busan Agreement to January 10, 2027. The arrangement prevents new bilateral trade tariffs until that date.
Ajay Srivastava of the Global Trade and Research Initiative (GTRI) sees consequences for India. He argued the extension leaves India as the main major country exposed. That exposure, in his view, arises under the new US sanctions law.
The China arrangement remains temporary under its stated timeline.
US Sanctions Law Raises the Tariff Stakes
The legislation is known as the Lindsey Graham Sanctioning Russia and Iran Act of 2026. It authorises US President Donald Trump to impose tariffs on major Russian energy buyers. Those tariffs could reach up to 100 per cent.
Authorisation, however, is not the same as imposition. No such tariff on India has been reported.
India Stresses Energy Security and National Interest
New Delhi has set out its position through the Ministry of External Affairs. In a September 17 statement, the MEA addressed the legislation directly.
It said India had warned senior US officials of possible effects. Those included effects on bilateral relations and global energy markets.
The MEA also restated India’s commitment to energy security for 1.4 billion people. It said that goal would be met through diversified sourcing.
Biswajit Dhar, a former JNU professor, said the MEA had ruled out compromise. He expects Goyal to deliver a similar national-interest message in the US.
Goyal’s Trade Agenda Extends Beyond Russian Energy
The visit may also touch on wider India-US trade. The two countries are negotiating a bilateral trade agreement, or BTA.
The Commerce Secretary earlier indicated Goyal may meet US Trade Representative Jamieson Greer. There has been no official confirmation of that meeting. Discussions were expected to touch on the BTA if the meeting occurs.
Srivastava argued India should not trade energy security for temporary tariff relief. He also cautioned against signing what he called an unequal trade deal.
Tariff Response Remains an Open Question
Experts have also discussed how India might respond to new tariffs. Abhijit Das, an expert on international trade and WTO matters, urged preparation.
He said India should press Washington not to apply the law against it. He argued any additional tariff should draw commensurate Indian measures. That is his recommendation, not a stated government decision.
Diplomatic Engagement Widens
The issue has also reached senior diplomatic levels. External Affairs Minister S Jaishankar raised India’s concerns with US Secretary of State Marco Rubio. They met on Wednesday on the sidelines of the UNGA meeting in New York.
Russian Oil, Energy Security and Trade Remain Intertwined
India’s Russian oil purchases now sit at a sensitive junction. Sanctions law, energy security and trade negotiations are converging in one agenda.
How Washington applies the legislation remains unclear. So does the course of the India-US trade talks.
