India Warns Russia Sanctions Bill Threatening 100% Tariffs Could Impact US Ties, Global Energy Market

India on Thursday warned that a US sanctions bill allowing tariffs of up to 100% on major buyers of Russian oil could have implications for bilateral ties and the global energy market, hours after the US House of Representatives passed the legislation and sent it to President Donald Trump.

The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was approved by the House in a 262-159 vote on Wednesday, after clearing the Senate 86-11 on August 7. The legislation gives Trump the authority to impose tariffs of up to 100% on goods from the five largest buyers of Russian crude oil and natural gas. Based on current import volumes, the countries could include China, India, Slovakia, Hungary and Azerbaijan.

The bill does not automatically impose the tariffs. Instead, it gives the US president the authority to use them against countries that continue purchasing Russian energy. The legislation has now been sent to Trump for approval.

India Warns Of Impact On Bilateral Ties

India’s Ministry of External Affairs said New Delhi was determined to take all necessary measures to protect its trade and economic interests and would work with trade and industry bodies to address the potential impact.

The ministry said India had discussed the legislation “at high levels in recent months with various US interlocutors” and had “very clearly articulated” its potential implications for both the bilateral relationship and the international energy market.

India also reiterated that its energy purchases are guided by national interest.

“India remains firmly committed to ensuring energy security for its 1.4 billion people,” the ministry said, adding that New Delhi would continue sourcing energy through diversified supplies and according to evolving market dynamics.

Russia Remains India’s Biggest Crude Supplier

India has increased energy purchases from other suppliers, including the US and Venezuela, as part of efforts to diversify its sources. However, Russia remains a major source of crude for the country.

The new US legislation could therefore have a direct bearing on India’s energy trade if Washington chooses to exercise the tariff authority.

The bill uses a formula rather than naming specific countries. The five largest importers of Russian crude and gas would be identified based on import volumes over the preceding 12 months, with the list reassessed every 180 days.

The tariff rate, up to the 100% ceiling, would be determined by the US president.

Bill Gives Trump Broad Tariff Powers

The legislation also includes provisions related to countries importing Russian natural gas. An exemption is available for countries whose Russian gas imports account for less than 15% of Russia’s total gas exports and that are taking significant steps to reduce those imports.

The bill separately authorises tariffs of up to 500% on goods imported directly from Russia.

Trump would also have the power to waive the tariffs for a country if he certifies to Congress that doing so is in the US national interest. A permanent removal would require certification that the country has stopped buying Russian energy and provided assurances that it will not resume such purchases.

India’s Russian Oil Imports Had Surged

India’s purchases of Russian crude have been a persistent source of tension in its relationship with Washington.

After scaling back Russian oil imports amid US pressure, India increased purchases again as the conflict in West Asia disrupted energy supplies and shipping through the Strait of Hormuz.

According to data cited by the Centre for Research on Energy and Clean Air, India’s Russian crude imports rose sharply in June 2026, making the country one of Russia’s largest oil buyers.

The bill’s 12-month lookback period for identifying the largest purchasers could therefore capture the increase in India’s imports.

Impact On India-US Trade Ties

The legislation comes as India and the US continue discussions on a bilateral trade agreement. The two countries had earlier reached an understanding to reduce tariffs to 18%, although a broader trade deal has yet to be formally concluded.

The new sanctions legislation could add another complication to those negotiations.

India has previously objected to US tariff measures linked to Russian oil purchases, while Washington has repeatedly pressed countries to reduce their dependence on Russian energy.

The US House’s passage of the bill does not itself mean India will face a 100% tariff. It gives the Trump administration the authority to impose such tariffs under specified conditions.