Trump's Russia sanctions waiver eases India's energy fears, boosts trade deal hope

Trump's waiver of Russia sanctions spares India steep tariffs and may unblock a long-pending India-US trade deal, with Rubio calling an agreement 'very close'.

An executive order signed by US President Donald Trump has waived key Russia-related sanctions and tariffs that were scheduled to take effect this week under the Graham Act, easing pressure on one of the world's largest Russian-oil buyers. The move spares Indian goods the threat of tariffs of up to 100 per cent and comes as a relief for New Delhi's energy planners.

US Secretary of State Marco Rubio, who arrives in India on Tuesday, said the decision took into account ongoing efforts to close an India-US trade deal. Speaking in Uzbekistan, he said negotiators were 'very close' to finalising the pact, which had stalled partly over the tariff threat.

India is the world's third-largest oil importer, and Russia supplied nearly half its crude earlier this year before purchases began tapering. Analysts say the waiver could act as the confidence-building measure that gets the long-running trade talks over the final hump.