US Pauses Russia Sanctions Decision For 60 Days, Weighs Impact On India’s Energy Ties

The Trump administration will take a 60-day pause before deciding on vast new sanctions on Russia and trading partners such as India, as it studies the fallout for the global economy and energy markets. US Secretary of State Marco Rubio disclosed the move on Saturday, just before travelling to Uzbekistan and India.

The pause matters for India because the sanctions framework under the Lindsey Graham Act could hit countries that keep buying Russian energy. It also matters more widely because Washington is weighing the impact on oil and gas prices at a time of strain across multiple energy routes and producers, including the Iran war, Houthi military strikes on Saudi Arabia and the war in Ukraine.

Rubio's remarks came after the Trump administration decided this week to waive sanctions on Russia under the Lindsey Graham Act. The administration is now using the next 60 days to assess how far it can tighten pressure on Moscow without worsening energy costs and trade disruption.

Rubio Explains Waiver

Rubio tied the delay to energy risks.

“I think when the bill was passed, one of the reasons the waivers were put in there was understanding that they would need some period of time to study this, given all the different things that are going on in the world right now, including the pressure on global energy supplies that are happening. Not just because of Iran and not just because of the Strait of Hormuz, but increasingly because of the Houthis attacking Saudi Arabia and because of the war with Ukraine and Russia, where energy infrastructure is being hit. And so that's having an impact on global prices as well. So I think you have to take all of that into account and weigh it against each other,” Rubio said to reporters just ahead of his visit to Uzbekistan and India.

He pointed to pressure on global energy supplies as the main reason for caution. Rubio specifically referred to Iran, the Strait of Hormuz, Houthi attacks on Saudi Arabia and the war involving Ukraine and Russia, where energy infrastructure is being hit.

His argument was that these disruptions are already feeding into global prices. The administration believes any new sanctions package must be measured against those existing pressures.

India In The Crosshairs

India is central to that review.

The Graham Act gave the US President authority to impose tariffs of up to 100% on the top five purchasers of Russian energy. That means the law could also affect US partners such as India, which remains a major buyer even after diversifying supplies.

“And then you've got countries like India, for example, that have voluntarily diversified their energy portfolio but are still getting a substantial amount of energy from Russia because it's hard to pivot from one day to the next. But they're also an important ally and partner of the United States. So we need that period of time to sort of study all this and figure out what the right combination is,” Rubio added.

Rubio's remarks put the US position in clear terms. Washington sees India as a partner, but also as a country that could be caught by a sanctions law aimed at curbing Russia's energy income.

Trump’s Waiver Move

Trump moved first on Friday.

A month after signing the Lindsey Graham Act into law, President Trump used a waiver provision to hold back tariffs of up to 100% that would otherwise have been triggered against India and four other countries for buying Russian oil and gas. The order also waived a range of sanctions aimed at Russia and its economic partners on national interest grounds and until further notice.

The law gives the President broad tariff powers. Along with tariffs on the top five buyers of Russian oil and gas, it also authorises higher tariffs on Russian exports to the US of up to 500% and up to 100% on the top five countries helping Russia evade oil sanctions.

It goes beyond trade penalties. The act also includes new sanctions targeting Russian financial institutions and their international partners as part of a wider push to pressure Moscow to end the Ukraine war.

Energy Prices And Politics

US domestic politics also shaped the waiver.

The administration's decision followed a concerted push to lower energy prices in the US before midterm elections on November 3. That political timetable adds to the economic case for delaying sanctions that could tighten supply and lift fuel costs.

Last week, the Trump administration announced a controversial diesel supply deal with Russia. The arrangement could see Moscow supply 5 million tonnes of diesel to the US and the global economy in the coming months.

Trump explicitly linked that Russia deal to his effort to secure lower energy prices for American consumers. That places energy affordability, election-year politics and Russia policy on the same track for now.