Trump’s planned signature on the Russia sanctions bill could put India’s Russian oil purchases under fresh pressure, while New Delhi warns of risks to energy security, bilateral ties and global oil markets
India could face fresh tariff pressure from the US as President Donald Trump prepares to sign a Russia sanctions bill that gives him the power to impose tariffs of up to 100 per cent on countries buying Russian oil and gas.
A White House official told news agency ANI on Thursday that “the President plans to sign the bill”. The US House of Representatives passed the legislation 262-159 on Wednesday after the Senate had already approved it.
The bill, called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, does not automatically impose a 100 per cent tariff on India. Instead, it gives Trump the authority to impose tariffs of up to 100 per cent on countries that continue to buy Russian oil and gas. India and China are among the major buyers that could potentially face the measures.
India puts energy security first
New Delhi has warned that the legislation could affect both India-US relations and global energy markets.
The Ministry of External Affairs said India is monitoring developments and remains committed to securing energy for its 1.4 billion people.
“India remains firmly committed to ensuring energy security for its 1.4 billion people,” the ministry said.
India will continue to source energy from different suppliers based on changing market conditions, it said.
The MEA also said the issue had been discussed with US officials at senior levels in recent months. India had conveyed its concerns about the possible impact of the legislation on bilateral ties and international energy markets.
More from BusinessNew Delhi said it would take all necessary measures to protect its trade and economic interests.
India’s Ambassador to the US Vinay Mohan Kwatra also defended the country’s approach to energy sourcing. In comments reported by ANI, he described energy sourcing as a “fundamental national responsibility” linked to the needs of India’s population.
Why Russian oil matters to India
India imports more than 88 per cent of the crude oil it consumes, according to data cited by the Global Trade Research Initiative.
Russian crude has become a major part of India’s oil supply since the Russia-Ukraine war changed global energy trade.
Indian refiners have continued to buy Russian oil based on factors including price, availability and market conditions.
The new US legislation could therefore create a difficult choice for Indian refiners if Washington decides to use the tariff powers.
A major reduction in Russian supplies could push Indian refiners towards other sources. The cost of replacing Russian crude would depend on global oil prices, supply availability and transport costs.
Indian refiners have also sought discussions with Washington over possible exemptions or quotas, Reuters reported. Refiners have warned that cutting Russian supplies could increase costs at a time when global oil markets are already under pressure.
But the bill itself does not mean that India will immediately face a 100 per cent tariff.
The actual impact will depend on whether Trump uses the powers after signing the legislation and what conditions his administration sets.
Russia says sanctions could hurt peace efforts
Russia has also criticised the bill. Kremlin spokesman Dmitry Peskov said additional US sanctions would make efforts to reach a peace settlement in Ukraine more difficult.
“We are, of course, monitoring the progress of this document,” Peskov said, describing the measure as an unfriendly action. He added that further US sanctions would complicate efforts to find a peaceful resolution in Ukraine, according to Reuters.
The legislation targets Russia’s energy and defence sectors, officials, financial institutions and vessels linked to what Washington calls its shadow fleet.
The US measure is aimed at increasing economic pressure on Moscow by targeting revenue and entities connected to Russia’s energy trade.
China rejects US ‘long-arm jurisdiction’
Chinese Foreign Ministry spokesperson Guo Jiakun said normal economic and trade cooperation between countries should not be disrupted or coerced by a third country.
Beijing also rejected what it called US “long-arm jurisdiction” and said it opposes unilateral sanctions that lack a basis in international law or authorisation from the UN Security Council.
China is another major buyer of Russian energy and could also come under pressure if the Trump administration uses the new tariff powers.
Fresh pressure on India-US trade talks
The bill comes at a sensitive time for India-US trade relations. New Delhi and Washington are still working towards a broader bilateral trade agreement. The issue of India’s Russian oil purchases has already been a source of tension between the two countries.
The new legislation could add another issue to those negotiations.
For Indian exporters, the concern is not only the potential tariff itself but also the uncertainty over which products could be targeted and at what rate.
For the energy sector, the bigger question is whether India can continue buying Russian crude without facing additional costs on its exports to the US.
The US legislation gives Trump the power to impose tariffs of up to 100 per cent. It does not require him to impose the maximum rate on India..
