The price of engaging with Russia’s energy sector appears to be vastly different for India compared to major American corporations. While India is being hit with 50% tariffs by the Trump administration, US oil giant Exxon Mobil is in discussions that could lead to a profitable return to the Russian market.
President Trump has made India’s purchase of Russian oil the central reason for imposing steep duties on its exports to the US. With the final set of tariffs activating this week, the economic pressure on New Delhi is mounting significantly.
At the same time, a dialogue between Washington and Moscow is exploring pathways for renewed energy cooperation. The centerpiece of these talks is a potential deal for Exxon Mobil to re-enter the Sakhalin-1 oil and gas project, a venture it was forced to abandon due to sanctions.
This situation creates a perception of a two-tiered system. Allied nations face penalties for their energy choices, while well-connected multinational corporations may receive exemptions if it serves a broader strategic or political purpose, such as enticing Russia into peace talks or providing President Trump with a diplomatic victory.