India Closely Monitoring US Bill Proposing Up to 100% Tariffs on Buyers of Russian Oil

India has said it is closely monitoring a proposed US law that could impose tariffs of up to 100 per cent on countries purchasing Russian oil and natural gas. The legislation, which recently cleared the US Senate, could have significant implications for global energy trade if it becomes law.

The Ministry of External Affairs (MEA) reaffirmed that India's energy policy remains guided by national interests and the country's long-term energy security requirements.

India Reiterates Energy Security Is a National Priority

During the weekly media briefing, MEA spokesperson Randhir Jaiswal said the government is carefully following developments related to the proposed legislation.

He emphasised that India's energy decisions are based on ensuring affordable and reliable supplies for its population through diversified sources.

According to the MEA, India's energy strategy is driven by national priorities rather than geopolitical considerations, while maintaining engagement with multiple international energy partners, including the United States.

India Engaging With US Stakeholders

The government also confirmed that discussions with relevant stakeholders in the United States are continuing.

Officials said India remains in regular contact with US counterparts regarding the proposed legislation and broader issues related to bilateral energy cooperation.

What Does the US Bill Propose?

The proposed legislation, titled the Sanctioning Russia and Iran Act of 2026, was approved in the US Senate with strong bipartisan support.

If enacted, it would authorise the US President to impose:

• Primary sanctions on Russia.
• Secondary sanctions on entities supporting Russia's war effort.
• Tariffs of up to 100% on imports from countries purchasing significant quantities of Russian oil or natural gas.
• Additional penalties on countries helping Russia evade existing sanctions.

The bill will now move to the US House of Representatives for further consideration.

Which Countries Could Be Affected?

According to the proposed legislation, the five largest buyers of Russian fuel or countries accused of facilitating sanctions evasion could become subject to additional tariffs.

Countries mentioned in the proposal include:

• India
• China
• Slovakia
• Hungary
• Azerbaijan

The legislation also requires US authorities to review the list every 180 days, allowing tariff rates to be revised based on changes in purchasing patterns.

Potential Impact on India

India has significantly increased purchases of discounted Russian crude since the Ukraine conflict began, making Russia one of its largest energy suppliers.

Any future US tariffs, if implemented, could affect trade dynamics and increase pressure on countries importing Russian energy.

However, no immediate changes take effect, as the legislation must still clear the House of Representatives before it can become law.

India's Position Remains Unchanged

India has consistently maintained that its energy procurement decisions are made in accordance with national economic interests and energy security needs.

The government has repeatedly stated that diversified sourcing remains essential for meeting the energy demands of more than 1.4 billion people, while continuing to engage constructively with international partners.

Key Highlights

• India is monitoring a US bill proposing tariffs of up to 100% on buyers of Russian oil and gas.
• The MEA says India's energy policy is guided by national priorities and energy security.
• The legislation has passed the US Senate and now awaits consideration in the House of Representatives.
• India remains engaged with US stakeholders regarding the proposed law.
• The bill could impact major importers of Russian energy if enacted.

FAQs

Why is India monitoring the US sanctions bill?

The proposed legislation could impose tariffs on countries purchasing significant quantities of Russian oil and gas, potentially affecting India's energy imports and trade.

Has the bill become law?

No. The bill has passed the US Senate but still requires approval from the House of Representatives before it can become law.

Why does India import Russian oil?

India has increased imports of Russian crude in recent years to ensure affordable energy supplies while diversifying its sources of oil.

Which countries could face the proposed tariffs?

The legislation identifies major buyers of Russian fuel, including India, China, Slovakia, Hungary and Azerbaijan.

Has India changed its energy policy?

No. The government says its energy procurement strategy continues to be based on national interests and long-term energy security.