New legislation could expose India and China to additional tariffs of up to 100% as major buyers of Russian oil and gas
India has said it remains “firmly committed” to ensuring energy security for its 1.4 billion people, in response to the threat of steep new tariffs from the Russia sanctions bill that cleared the US Congress on Wednesday.
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the Indian Foreign Ministry said in a statement on Thursday.
The new US bill mandates up to 100% additional trade tariffs on the top buyers of Russian oil. India is the second-largest buyer of Russian oil, after China.
Russian crude accounted for 45% of Indian oil imports in August, at around 2.1 million barrels per day. New Delhi bought $40.8 billion of Russian crude in the financial year that ended in March, or about 30.3% of its total crude imports, according to the Global Trade Research Initiative (GTRI) think tank.
The House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 in a 262-159 vote on Wednesday, following the bill’s approval by the Senate last month. The legislation now goes to US President Donald Trump to be signed into law.
Our statement on passage of the Sanctioning Russia and Iran Act in the US Congress
The Indian Foreign Ministry said the issue had been discussed at high levels in recent months with US officials, and that New Delhi had clearly conveyed the potential implications for both bilateral relations and the international energy market.
The Indian government will work closely with trade and industry bodies to deal with the implications, the Foreign Ministry said, adding New Delhi would continue to ensure energy security through diversified sourcing and on the basis of evolving market dynamics.
The pressure on India to cut off Russian oil also comes amid the conflict in the Middle East, triggered by the US-Israeli attacks on Iran, which have disrupted energy flows through the Strait of Hormuz and stoked energy prices.
The legislation does not automatically impose additional tariffs on Russian energy buyers, although it does give Trump the authority to impose extra duties on the top five importers of Russian-origin crude oil or natural gas. India has held off on signing a trade deal with the US despite months of negotiations.
Analysts have said Trump could use the new tariff bill to pressure India to make unilateral trade concessions. The bill, named after late Republican Senator Lindsey Graham, a known Russia hawk, also targets Russia’s energy and defense industries and vessels Washington claims are used to evade existing sanctions, while extending sanctions on Iran.
