Stories
Why India Cannot Rely on American Goodwill for Energy Security
- •The United States imposed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, threatening tariffs on countries buying Russian energy, while soon after issuing a temporary licence for Russian diesel to manage domestic prices.
- •Historical precedents like the 1980 grain embargo show that American sanctions and trade policies consistently bend to domestic political convenience and electoral cycles rather than rigid moral principles.
- •India imports over 85 percent of its crude and relies heavily on Russian supplies to meet its domestic energy demands, making it vulnerable to shifting foreign policies.
- •The recent events highlight five critical implications for India, including the need to avoid subcontracting energy security, prioritize permanent strategies over temporary reprieves, and reduce critical dependencies on a single jurisdiction.
Key Questions Answered
Signed into law by the US President on September 18, 2026, the Lindsey O. Graham Sanctioning Russia and Iran Act (SRIA) of 2026 authorises tariffs of up to 100 per cent on countries that purchase Russian energy, specifically targeting nations like India and China.
The US Treasury’s Office of Foreign Assets Control issued a temporary general licence allowing Russian diesel to flow to global markets until April 7, 2027, to address domestic shortages and soaring retail prices that reached $6.28 a gallon ahead of the November midterm elections.
The policy shift demonstrates that American energy rules can easily invert based on domestic political convenience. Consequently, India must not subcontract its energy security to another country's electoral calendar, should avoid trading permanent concessions for temporary repreeves, and needs to seek written exemptions rather than relying on US goodwill.
