Industry Odisha Bureau, Oct 12: Trump has announced US purchases of Russian diesel under a deal with Putin. Washington still threatens India with 100% tariffs over Russian oil. New Delhi is reviewing whether a US exemption may follow.
India is reviewing President Donald Trump’s announcement that the US will buy Russian diesel. The move comes as Washington threatens India with 100% tariffs over Russian oil imports.
New Delhi wants to know how the US will square the two positions. The answer matters for India’s energy purchases from Moscow. It could also shape the outlook for strained India-US ties.
The tariff threat is tied to the Russia and Iran Sanctions Act, or SRIA. That penalty has not yet been imposed.
Senior sources, speaking anonymously, said buying Russian diesel may not clearly breach that law. They added that Washington could create an exemption for its own purchases. The sources acknowledged that the contrast could appear hypocritical.
An exemption would allow transactions that a restriction would otherwise cover. Such an exemption remains a possibility, not a confirmed policy. Diesel is a refined fuel, unlike the Russian oil India imports.
Trump said the deal with President Vladimir Putin covers several stages. Russia would immediately supply more than 300,000 tonnes of diesel. Another 500,000 tonnes would follow in November, then 1 million tonnes soon after.
A further 3 million tonnes depends on refinery conditions. These are announced commitments, not completed deliveries. No price or payment terms have been disclosed.
Trump framed the purchases as a way to cut fuel costs. He named farmers, ranchers and truckers as key beneficiaries.
Trump and Prime Minister Narendra Modi spoke by phone on 30 September. The call was described as positive. Yet Washington has not reached a final decision on any waiver under SRIA.
The phone call did not produce any announced sanctions relief. Over recent months, New Delhi has held several conversations with US interlocutors.
It warned that SRIA sanctions would hurt bilateral ties. Those ties are already strained by a delayed trade pact and growing US-Pakistan links.
Diesel prices have risen in the US and Europe. Fuel flows through the Strait of Hormuz have faced constraints. Attacks on Russian oil and gas infrastructure have added to the strain.
Trump has urged Ukraine’s president to halt strikes on Russian oil facilities. On Truth Social, Trump claimed total US control of the Strait of Hormuz. He predicted diesel prices would fall sharply and quickly.
Lower diesel costs matter for farm and transport businesses. Some see the move as an appeal to voters ahead of the US midterms.
For now, India continues to study the announcement. Washington has not yet detailed how it will structure the purchases. The key question is whether the US exempts its own diesel purchases.
The diesel arrangement is also separate from any US decision on India. The 100% tariff threat still stands.
