The Trump administration’s focus on “the art of the deal” is now extending to the complex world of energy diplomacy, with major talks underway with Russia. However, the pursuit of this deal is creating significant diplomatic fallout with a key partner, India.
The potential deal with Russia is ambitious. It involves reversing some of the economic isolation imposed since 2022, with proposals for Exxon Mobil to return to the Sakhalin-1 project and other forms of energy cooperation. This is being positioned as a grand bargain for peace in Ukraine.
The fallout is being felt in New Delhi. India is facing a 50% tariff on its goods for engaging in the same type of energy trade that the US is now considering for itself. This has created a sense of unfairness and has put the US-India relationship under strain.
This situation perfectly illustrates the administration’s deal-making approach: a relentless focus on securing a headline-grabbing agreement with an adversary, even if it comes at the cost of friction with a long-standing ally. The final outcome will determine whether the art of this particular deal was worth the price.
The Art of the (Energy) Deal: US-Russia Talks and the Indian Fallout
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