A Study in Contrasts: US Approach to Russian Trade for India and Itself

The current US approach to trade with Russia presents a study in contrasts. The rules applied to a key ally, India, are vastly different from the possibilities being explored for American corporate interests, creating a stark and controversial policy divide.
For India, the policy is one of strict, punitive enforcement. Its imports of Russian oil have triggered a severe response from Washington, with tariffs on its goods set to reach 50% this week. The message is that such trade is unacceptable.
For the United States itself, the policy appears to be one of strategic flexibility. Officials are actively discussing deals that would involve major US investment in Russia’s energy sector, including a return for Exxon Mobil to the Sakhalin-1 project.
This contrast raises fundamental questions about the principles guiding US trade policy. Is the goal to isolate Russia’s economy, or is it to use trade as a flexible tool of statecraft? The current approach suggests the latter, even if it means applying different standards to different countries.