US says India can diversify energy as Trump gets new Russia sanctions tool

A senior US official said Washington wants to help meet India's vast energy needs as it diversifies supplies. The outreach comes as Trump's new Russia sanctions law raises uncertainty but leaves room for waivers.

In Short

• A new US law permits tariffs on nations buying Russian oil
• Washington said Congress took a tough line but understood India's response
• Officials stressed Trump has an optional tool, not an immediate penalty

India, which has large energy needs, has for long been looking to diversify its energy sources, and the United States wants to help meet that demand, a senior US State Department official has said. The remarks come after US President Donald Trump last week signed into law the 'Lindsey O. Graham Sanctioning Russia and Iran Act of 2026', which authorises him to impose tariffs of up to 100 per cent on countries buying Russian oil and gas, including India and China.

Responding to questions on the law and India’s concerns over its possible impact on bilateral ties, the official said the US Congress had taken a tough public line, but added that India’s response was understood. The official also said the measure gives Trump an additional option, though it is not clear how or when it will be used, and pointed to a broad national security waiver in the law.

"India has been looking for a long time to diversify its energy sources. They're a country that has massive energy needs," the official said. Referring to criticism from US lawmakers, the official said, "You had members of Congress calling out India in particular, so of course India has to respond. We understand that. They have a domestic constituency, as do we. Like, there is no sort of hard feelings on any of that kind of activity."

The official said Congress had passed a bill that gave Trump "a new tool in his toolbox". "That doesn't necessarily mean he deploys it tomorrow, but he has the opportunity to. His focus is on ending this war. It's been something he campaigned on and something he's been dedicated to from the beginning," the official said.

"We're looking for our friends, especially like India, to help support that effort. But I think you'll have to stay tuned on how the bill gets implemented. But there is a broad national security waiver, so you can imagine also the president, there's a scenario, the president uses that as well," the official added.

The law is named after late Senator Lindsey Graham, who had earlier proposed a sanctions bill calling for 500 per cent tariffs on countries buying Russian oil. The official said that for a long time, supplies from Venezuela and Iran had been cut off, leaving limited options. "Now, with President Trump's incredibly successful operation in Venezuela, we are moving into a better position that countries like India are going to be able to get access to that market," the official said.

Saying that "the Indians are very interested", the official said India used to have refineries in Venezuela, but getting them running again was complicated because of the damage done to the industry by the Nicols Maduro regime. The official added, "We are looking to also become a huge source of India's energy needs. We're increasing our hydrocarbon exports," and said the US is now the largest exporter of LPG and the second-largest exporter of LNG.

"The demands are great, and the needs for oil are there. We are looking for alternatives," the official said, adding that such discussions happen frequently, including between External Affairs Minister S Jaishankar and Secretary Marco Rubio, and would continue. The official said India had been trying to diversify its energy basket even before the war, and the current focus was on speeding up that process.

In sum, the official said India’s push to widen its energy options is not new, the US is seeking to position itself as one of those alternatives, and questions over the new law’s impact will depend on how the Trump administration chooses to implement it.

With PTI Inputs

- Ends