A Carrot for Moscow, a Stick for New Delhi: US Energy Policy Unveiled

The Trump administration’s energy policy towards Russia and India can be summed up as a classic “carrot and stick” approach. A carrot of economic opportunity is being offered to Moscow, while a stick of punitive tariffs is being used against New Delhi.
The stick is a 50% tariff on Indian goods, a measure designed to punish India for its purchase of Russian oil. With the final duties taking effect this week, the economic pressure is set to intensify, forcing India to feel the consequences of its trade decisions.
The carrot is a suite of potential energy deals designed to entice Russia into peace negotiations over Ukraine. These include the possibility of Exxon Mobil re-entering the multi-billion dollar Sakhalin-1 project, a significant prize for the Russian economy.
This dual strategy reveals a clear, if controversial, foreign policy logic. The administration is using economic leverage in two different ways to achieve two different goals: compelling an ally to change its behavior and incentivizing an adversary to negotiate. The approach is pragmatic, but it risks creating deep resentment in New Delhi.