India monitoring proposed US bill on steep tariffs for Russian oil buyers

By Admin

10 Jan, 2026

Background of the Proposed US Legislation
India has said it is closely monitoring developments around a proposed bill in the United States that seeks to impose punitive tariffs of up to 500 per cent on countries purchasing Russian crude oil. The legislation, introduced by US Senator Lindsey Graham, targets nations that continue to buy and resell Russian oil despite Western sanctions imposed on Russia following its invasion of Ukraine in February 2022.

India and China Among Key Buyers
Since the imposition of sanctions by Western countries, India and China have emerged as the largest buyers of discounted Russian crude. India, in particular, significantly ramped up its imports to manage rising energy costs and ensure supply stability in a volatile global market.

Official Response from New Delhi
Confirming New Delhi’s position, External Affairs Ministry spokesperson Randhir Jaiswal stated during a weekly media briefing that the government is aware of the proposed US legislation and is tracking the situation closely. He reiterated that India’s energy sourcing decisions are driven by market realities and the need to ensure affordable energy for its population of around 1.4 billion.

“Our position on energy sourcing is well known,” Jaiswal said, adding that India’s approach is shaped by global market conditions and the imperative of energy security. He further emphasised that India is guided by evolving global dynamics and the need to secure affordable energy from diverse sources.

Role of US Political Developments
Earlier this week, Senator Graham said he had a “very productive meeting” with former US President Donald Trump, claiming Trump had approved moving forward with the Russia sanctions bill, which has been under discussion for several months. According to Graham, the bill would give the US president significant leverage to impose severe penalties on countries buying discounted Russian oil.

“This bill would give President Trump tremendous leverage against countries like China, India and Brazil to incentivise them to stop buying cheap Russian oil,” Graham said in a social media post. The legislation proposes a steep 500 per cent tariff on secondary purchases and resale of Russian crude.

Claims on India Reducing Russian Oil Imports
Graham also claimed that India’s Ambassador to the US, Vinay Kwatra, had informed him that New Delhi was reducing its purchases of Russian oil and had requested the US administration to consider easing tariffs imposed on India. However, India has not officially confirmed these claims.

US Pressure and India’s Energy Security Concerns
The United States has been urging India to scale back its Russian oil imports, arguing that Moscow is using oil revenues to fund its military campaign in Ukraine. India, on the other hand, maintains that its decisions are purely economic and aimed at safeguarding national energy security.

Sharp Rise in Russian Oil Share
India began significantly increasing its imports of discounted Russian crude after Western sanctions were imposed. As a result, Russia’s share in India’s total crude oil imports rose sharply from just 1.7 per cent in 2019–20 to 35.1 per cent in 2024–25, underlining the growing importance of Russian oil in India’s energy basket.

Conclusion
As global geopolitical tensions continue to influence energy markets, India remains firm on its stance of prioritising affordability and energy security. While monitoring the proposed US bill closely, New Delhi has made it clear that its energy sourcing strategy will continue to be guided by market conditions and the needs of its people rather than external pressure.