Determined to protect trade, economic interests: India on US Russia sanctions bill

India on Thursday said it was determined to protect its trade and economic interests after the US Congress passed a sweeping Russia sanctions bill that gives President Donald Trump the power to impose tariffs of up to 100% on countries including India and China over their purchases of Russian oil and gas.

In a statement, the External Affairs Ministry said the government remained committed to ensuring energy security for 1.4 billion people and would continue to pursue it through diversified sourcing and based on evolving market dynamics.

It said the issue had been discussed at high levels with various US interlocutors in recent months, with India clearly articulating the potential implications of the legislation for both bilateral ties and the international energy market.

“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the ministry said, adding that it would work closely with trade and industry bodies to deal with the implications of the US move.On Wednesday, the US House passed the legislation, formally called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, by a 262-159 vote.It allows tariffs of up to 100 per cent on countries that continue buying Russian oil and gas, with India and China specifically identified during the House debate as major buyers that could be affected.The bill had already cleared the US Senate by an 86-11 vote last month and it now heads to the White House, where US President Donald Trump is expected to sign it into law.The legislation seeks to increase economic pressure on Moscow over its war in Ukraine by targeting Russia's energy and defence sectors as well as its so-called “shadow fleet” of tankers accused of helping Moscow evade existing sanctions.It also provides for additional sanctions on Iran.

India’s inclusion in the legislation does not mean that a 100 per cent tariff has been imposed on Indian goods. The bill would instead give Trump the authority to impose tariffs of up to 100 per cent on countries that continue to buy Russian oil and gas, if the relevant provisions are triggered.

The provision is still significant for India because it remains a major buyer of Russian crude.

Russian oil became increasingly important to Indian refiners after Western sanctions following the war in Ukraine reshaped global energy flows.

The US has sought to put economic pressure on countries purchasing Russian energy, arguing that oil and gas revenues provide Moscow with a key source of funding for the war.

If Washington were to use the authority provided under the legislation against India, the impact would primarily be felt through Indian exports to the US.

A tariff of up to 100 per cent could sharply raise the cost of Indian products in the American market, potentially affecting their competitiveness.- EndsPublished By: sharangee Published On: Sep 17, 2026 10:08 IST