New Delhi: Warning the US of “potential implications” to bilateral ties, India Thursday underlined that it will take all measures necessary to protect its economic interests following the passage of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which allows imposition of sanctions and tariffs on countries trading with Russia and Iran.
“India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics,” the Union Ministry of External Affairs said in a statement.
“This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side.”
The MEA statement underlined that India has “made clear its determination to take all necessary measures” to protect its trade and economic interests.
“The Government will work closely with Indian trade and industry bodies to deal with the implications of these developments,” added the statement.
The sweeping sanctions bill championed by the late senator of South Carolina, Lindsey Graham, empowers the US President to impose tariffs of up to 100 percent on countries like China and India that continue to trade with Russia. It also allows the US government to sanction Russia’s banking system and its shadow oil fleet.
The bill had earlier passed the US Senate with bipartisan support. Over 50 Democrats bucked the party-line to vote in favour of the bill in the US House of Representatives allowing for smooth passage of the legislative document. The bill showcased a rare moment of unity between the Republicans and the Democrats.
Democratic Senator Richard Blumenthal called on India and China to “clean up their act”, and to purchase oil from other sources.
For India, the potential implications are huge. Russia remains the largest source of crude oil for India. New Delhi has consistently maintained that the purchase of energy is dictated by the market conditions and its need to support an economy of 1.4 billion people.
The US under President Donald J. Trump has, in the past, attempted to push India from purchasing Russian oil through the usage of tariffs. Washington had imposed tariffs of up to 50 per cent on Indian goods between August last year and February 2026. The penalty tariff of 25 per cent was removed following the announcement of a bilateral trade agreement between the two countries.
The overall tariff architecture was struck down by the US Supreme Court in February 2026. However, the new bill, which is expected to be signed into law by Trump, will give his administration flexibility to impose tariffs on countries continuing to trade with Russia.
The passage of the bill also comes at a time when global oil prices have spiked past $100 a barrel on the Brent crude index. The deteriorating situation in West Asia, especially with the Houthis in Yemen capturing the Red Sea coast and threatening Saudi Arabia’s refining capacity coupled with the situation in the Strait of Hormuz continues to threaten global energy supplies.
(Edited by Niyati Kothiyal)
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Apart from all else, 100% tariffs for purchase of Russian oil would make the trade deal, under negotiation for one and a half years, meaningless.