Marco Rubio defends US Russia energy tariff waivers citing India's strategic weight
Washington grants a 60-day review period as US Treasury Secretary Scott Bessent urges the World Bank to lift restrictions on fossil fuel funding.
Why the US deferred tariffs on Indian energy imports
US President Donald Trump has temporarily waived punitive tariffs on nations buying Russian oil and gas, with Secretary of State Marco Rubio citing India's proactive efforts to diversify its energy mix while acknowledging the practical realities of global supply chains.
Speaking ahead of an official trip to Uzbekistan and India, Rubio confirmed that Trump invoked Section 115 of the Sanctioning Russia and Iran Act—also known as the Graham Act—to grant a 60-day evaluation period. The legislation had authorized tariffs of up to 100 per cent on major purchasers of Russian energy, including India, alongside 500 per cent tariffs on direct Russian exports.
Rubio praised India as an essential global partner and highlighted New Delhi's prudent foreign policy and voluntary efforts to broaden its energy portfolio.
"They're also an important ally and partner of the United States," Rubio said, noting that while India has voluntarily diversified its imports, shifting massive energy supply networks overnight remains unrealistic. Trump requested the 60-day window to evaluate how secondary tariffs and sanctions would affect the broader global economy and US market stability.
| Country | Status under Graham Act | Recent Policy Position |
|---|---|---|
| India | Tariffs deferred under waiver | Voluntarily diversified energy sources |
| China | Tariffs deferred under waiver | Major purchaser of Russian energy |
| Azerbaijan | Tariffs deferred under waiver | Regional energy supplier |
| Slovakia | Tariffs deferred under waiver | European energy buyer |
| Hungary | Tariffs deferred under waiver | Central European energy buyer |
Broader US push for global energy stability
The tariff deferral coincides with a broader shift in American policy aimed at securing global energy access. At the IMF and World Bank annual meetings in Washington, US Treasury Secretary Scott Bessent urged the World Bank to remove its long-standing restrictions on financing upstream oil and gas projects.
Bessent argued that developing countries require abundant, reliable and affordable energy to drive economic growth, industrialisation and poverty reduction. The World Bank had limited upstream fossil fuel financing since 2019, but Bessent urged the institution to adopt a technology-neutral framework.
"The Bank cannot credibly invoke country ownership while categorically excluding upstream projects before their development merits are even assessed," Bessent stated.
He pointed to joint initiatives by the World Bank and African Development Bank aiming to bring power to 300 million people across Africa, emphasising that expanding natural gas access is essential to reaching those developmental milestones.
Together, these announcements reflect a pragmatic approach from Washington that recognizes the central role of reliable energy in driving national economic growth and maintaining global market stability.
Key numbers
| What | Figure | Source |
|---|---|---|
| Graham Act review period | 60 days | Marco Rubio |
| Maximum tariff on energy buyers under Graham Act | 100 per cent | Sanctioning Russia and Iran Act text |
| Maximum direct tariff on Russian exports | 500 per cent | Sanctioning Russia and Iran Act text |
| World Bank and AfDB energy access goal | 300 million people | Scott Bessent |
In this story
| Name | Role in the story |
|---|---|
| India | Key US partner exempted under the 60-day tariff waiver. |
| United States | Country issuing the tariff waivers and advocating World Bank policy changes. |
| World Bank | International financial institution urged to lift upstream fossil fuel financing restrictions. |
| Scott Bessent | US Treasury Secretary who called for World Bank oil and gas financing policy overhaul. |
| Donald Trump | US President who signed the executive order waiving Graham Act tariffs. |
| Marco Rubio | US Secretary of State who announced the tariff waiver rationales and upcoming visit to India. |
