- Washington authorized tariffs up to 100% on buyers of Russian energy under a 2026 act
- Days after, Trump announced Russia would supply over 300,000 tonnes of diesel to the US
- India was penalized with a 25% tariff for buying Russian oil, while the US now buys Russian fuel
Washington has given itself the power to hit buyers of Russian energy with tariffs of up to 100%. Days later, US President Donald Trump announced he would take Russian diesel for American consumers.
New Delhi, already penalised for the same trade, is unlikely to miss the contradiction.
A Deal Days After A Law
On October 9, Trump said Russia would supply more than 300,000 tonnes of diesel immediately, with larger shipments to follow.
A week earlier, on October 2, the US had passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. It authorises tariffs of up to 100% on countries that keep buying Russian oil and gas.
Why Washington Wants The Fuel
The Iran war, which began in February, has pushed up global energy prices.
The American Automobile Association puts average US diesel at $6.28 a gallon, just below the record $6.53 set at the end of September. With midterm elections close, Trump says prices will fall fast.
The Penalty India Paid
In 2025, Trump imposed an extra 25% tariff on Indian goods, explicitly linked to its purchases of Russian oil. The White House argued that such imports supported Russia's economy and its war in Ukraine.
That reasoning sits awkwardly beside a US purchase of Russian fuel.
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India's Own Arithmetic
India imports nearly 90% of its crude. Russia supplied 30.3% of it in fiscal 2026, worth $40.8 billion of a $134.7 billion import bill, according to the Global Trade Research Initiative.
In July, Russia accounted for more than half. The UAE, the next-largest supplier that month, had 10.8%.
Russia's share rose by 7.2 percentage points between April-June 2025 and April-June 2026, as India diversified away from Iraq and the US.
The war has made the trade costly. India's crude bill peaked at $18.7 billion in May, even as import volumes fell to 18.9 million tonnes by June.
New Delhi's Argument
External Affairs Minister S Jaishankar has said Washington itself asked India in 2022 to buy Russian oil to stabilise global markets.
The government also points out that the European Union traded 67.5 billion euros of goods with Russia in 2024, and calls it unjustified to single India out.
READ | Putin Fuel Pivot: Trump Strikes Deal To Flood Global Markets With Russian Diesel
Kyiv's Objection
Ukrainian President Volodymyr Zelensky called allowing Russia to sell petroleum products "an investment in a war that must be ended, not prolonged". He warned that the revenue would help Moscow sustain its military campaign.
The Bottom Line
The episode shows how national interest drives energy policy in every capital. Washington argued that buying Russian energy funds the war. It now says fuel prices at home justify doing so, and India is entitled to ask for the same latitude.
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