India Says It Will Protect Energy, Trade Interests as US Congress Passes Russia Sanctions Bill

India on Thursday said it was closely monitoring developments after the US Congress passed legislation that could expose major buyers of Russian oil and gas to tariffs of up to 100 per cent, while reaffirming that its energy security would continue to guide its crude sourcing decisions.

The Ministry of External Affairs (MEA), in a statement, said the government had taken note of the passage of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 and was monitoring further developments.

“As stated on several earlier occasions, 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 MEA said.

The ministry added that the issue had been discussed at senior levels with various US interlocutors in recent months and that India had clearly articulated the possible implications not only for bilateral relations but also for international energy markets.

The government, it said, would take “all necessary measures” to protect India’s trade and economic interests and work with Indian trade and industry bodies to deal with the consequences.

What has happened in the US Congress?

The US House of Representatives on Wednesday passed the legislation by 262 votes to 159, completing congressional action on the measure. It now goes to President Donald Trump for his signature. The Senate had passed the bill on August 7 by 86-11.

The legislation is the culmination of more than a year of efforts originally led by the late Republican Senator Lindsey Graham. A sanctions package was introduced in April 2025 but remained stalled for months amid differences over the extent of presidential authority over sanctions and tariffs. The White House had also been reluctant to surrender control over those tools of economic policy.

A bipartisan agreement in the Senate in late July cleared the way for the legislation to move forward. The Senate subsequently passed the revised measure in August, with the bill later being taken up by the House this week.

The legislation was renamed after Graham following his death in July.

Why is India concerned?

The most consequential provision for India is the bill’s secondary tariff mechanism.

Under the Senate-passed legislation, the President would be required, within 30 days of enactment, to raise tariffs to a rate of up to 100 per cent on goods imported from countries that meet specified conditions linked to purchases of Russian crude oil or natural gas. The legislation also covers countries identified as major facilitators of Russian oil-sanctions evasion.

The bill does not specifically name India as a country that will automatically face a 100 per cent tariff. Instead, it establishes criteria based on the volume of Russian oil and gas imported and on sanctions-evasion activity. This distinction is important because the legislation provides the Trump administration with substantial discretion over how the provisions are applied.

The bill also provides for periodic reassessment of the countries ranking among the largest importers of Russian crude and natural gas. The Congressional Research Service has noted that the legislation contains several interpretive questions concerning how its tariff provisions would operate.

India remains a major Russian oil buyer

India’s exposure stems from the dramatic expansion of Russian crude imports since the Ukraine war and the Western sanctions imposed on Moscow.

Russia became India’s largest source of crude after 2022, with Indian refiners taking advantage of discounted Russian barrels. Reuters reported earlier this month that Russian crude accounted for a record 51 per cent of India’s crude imports in July 2026, although the share fell in August as Russian supplies declined and competition from China increased.

According to Kpler data cited by The Indian Express, India imported about 2.08 million barrels per day of Russian oil in August, down from 2.82 million barrels per day in July. Russia’s share of India’s crude imports consequently declined from 55.9 per cent in July to about 45 per cent in August.

That does not, however, represent an immediate withdrawal from Russian crude. India remains one of Moscow’s biggest oil customers, and Russian supplies continue to play a major role in India’s overall energy mix.

A new layer on top of existing US-India tariff tensions

The latest legislation comes against the backdrop of an already contentious trade relationship.

In August 2025, the Trump administration imposed an additional 25 per cent tariff on Indian imports specifically over India’s purchase of Russian oil, taking the total tariff on many Indian goods to 50 per cent at the time.

The new congressional legislation is different in character. Rather than imposing a tariff on India by name, it establishes a statutory framework under which countries that continue to meet specified Russian-energy criteria could face tariffs of as much as 100 per cent.

For New Delhi, therefore, the immediate issue is not that a 100 per cent tariff has already been imposed. The House passage creates the legal authority for such action, subject to the bill becoming law and the Trump administration implementing the relevant provisions.

Broader target: Russia and Iran

The legislation goes beyond the secondary tariffs affecting Russian-energy buyers.

It provides for sanctions targeting Russian officials, financial institutions and entities associated with Russia’s defence and energy sectors, while also targeting the so-called Russian “shadow fleet” used to transport oil and evade sanctions. The legislation also extends the Iran Sanctions Act of 1996, preventing the existing sanctions authority covering Iran’s energy and weapons sectors from expiring.

The broader objective is to increase economic pressure on Moscow and constrain revenues that Washington argues help finance Russia’s war in Ukraine.

For India, however, the immediate question is how Washington ultimately exercises the new tariff authority and whether exemptions, waivers or adjustments are used. The MEA’s statement indicates that New Delhi has already been engaging Washington on those implications.

For now, the bill has cleared Congress but is not yet law. Its practical impact on India will depend significantly on President Trump’s decision to sign it and, thereafter, on how his administration applies the tariff provisions.