While Indian exporters operate under the growing shadow of 50% US tariffs, officials from Washington and Moscow are quietly discussing the dawn of a new era of energy cooperation. This includes the potential return of a major American oil company to Russia.
The tariffs on India are a direct consequence of its oil trade with Russia, a policy President Trump has personally championed. The final implementation of these duties this Wednesday will mark a significant escalation in trade tensions between the two allied nations.
In stark contrast, discussions with Russia are focused on collaboration. US envoy Steve Witkoff’s recent meeting with President Vladimir Putin included proposals for Exxon Mobil’s re-entry into the Sakhalin-1 project, as well as deals involving LNG equipment and nuclear icebreakers.
The strategic rationale is to use these economic incentives to bring Russia to the peace table over Ukraine. This pragmatic approach, however, risks alienating India and creating an impression that the US applies its trade rules unevenly, based on shifting geopolitical priorities.