US Secretary of State says Washington is balancing energy security and global economic pressures as New Delhi and Washington move closer to a trade agreement
The United States took the ongoing India-US trade negotiations into account when deciding to temporarily waive sanctions linked to Russian oil purchases, Secretary of State Marco Rubio said on Monday, October 19, raising hopes of progress towards a bilateral trade agreement.
Speaking at a press conference in Samarkand, Uzbekistan, Rubio said Washington was close to finalising a trade deal with India and that the negotiations had been among the factors considered while deciding to ease the sanctions measures.
“We’re trying to finalise a trade deal with India right now. We’re very close to doing that. So that’s one of the things we’ve taken into consideration,” Rubio said.
The remarks came days after US President Donald Trump temporarily suspended key provisions of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The legislation had created the possibility of punitive tariffs of up to 100 per cent on countries buying Russian oil.
The decision offers India temporary relief from the threat of additional US tariffs over its purchases of Russian energy, a major point of contention in bilateral trade negotiations.
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Rubio defended the administration’s approach, saying governments had to consider energy supplies, international prices and the economic consequences of foreign policy decisions
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He noted that some countries faced difficulties in securing alternative sources of energy
He added that US foreign policy had to account for relations with other countries and their practical energy requirements, alongside the continuing Russia-Ukraine conflict.
India has maintained that safeguarding energy security through diversified sources and decisions based on changing market conditions remains a priority. New Delhi has also raised concerns with Washington over the potential impact of the proposed sanctions legislation on bilateral ties and global energy markets.
The sanctions pause comes amid elevated fuel prices and inflationary pressures in both countries, adding an economic dimension to the decision.
Rubio is expected to visit Mumbai on October 20 for talks with External Affairs Minister S Jaishankar. The discussions are likely to provide an opportunity to review bilateral trade and broader strategic cooperation as both governments seek to resolve outstanding differences.
Although the waiver improves the immediate outlook, the finalisation of a trade agreement will depend on the outcome of the remaining negotiations.
