By Rajwa Quasim
India has warned that new U.S. measures targeting countries that continue to buy Russian oil could affect bilateral relations, while reaffirming that it will take necessary steps to protect its energy security and economic interests.
The warning came after the U.S. House of Representatives passed a wide-ranging sanctions and tariff bill aimed at increasing economic pressure on Russia over its war in Ukraine. The bill was initially introduced by the late Sen. Lindsey Graham about a year and a half ago and is now called the “Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.”
The bill passed the House by a vote of 262-159. It seeks to target Russia’s energy and defense sectors, along with its “shadow fleet” of tankers accused of helping Moscow bypass existing sanctions. The bill would also allow President Donald Trump to impose tariffs of up to 100% on countries that rely on Russian oil and gas.
India’s Ministry of External Affairs said it has already discussed the issue with several U.S. officials in recent months, explaining how such measures could affect India-U.S. relations and global energy markets.
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The ministry said in a statement that New Delhi remains “firmly committed” to ensuring energy security for its people and will continue to source supplies from diverse sellers based on market dynamics. It added that “the Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests.”
India’s dependence on Russian oil
India is the world’s third-largest oil importer and has become one of the biggest buyers of Russian oil since European sanctions against Moscow were imposed in 2022 following Russia’s invasion of Ukraine.
New Delhi has repeatedly defended its purchases, citing its sovereignty to decide from whom it buys oil to keep energy prices affordable. Russian crude has also offered Indian refiners access to supplies during periods of geopolitical tension.
In 2022, the G7, European Union and Australia imposed a $60-per-barrel price cap on Russian oil to restrict Moscow’s ability to fund the war. The EU and UK later lowered the cap to $48 per barrel. The measures attracted buyers from countries such as India and China. In March of the same year, Russian oil was reportedly sold to India for as little as $35 per barrel.
India’s Russian crude imports peaked at $5.8 billion in October 2024 before falling to $3.2 billion in December of that year. Russia accounted for 30.3% of India’s crude oil imports in fiscal year 2026, valued at $40.8 billion.
Indian refiners have already arranged shipments of Russian oil for September and October. Two refining sources told Reuters that they want the government to acknowledge their concerns and raise them with U.S. authorities, warning that failure to do so could lead to higher oil prices.
READ: Trump to Modi: ‘I’ll be there for India’ if country faces attack (June 17, 2026)
A former Indian trade official who runs the Global Trade Research Initiative (GTRI) said the bill is “a blunt and dangerous attempt to pressurize India to sign the bilateral trade agreement on one-sided terms.”
“India buys Russian oil to secure affordable energy for 1.4 billion people, not to finance war, and these purchases have helped stabilize global supplies and prices,” he said.
Although India no longer receives Russian oil at the steep discounts seen previously and could diversify its imports, shifting away from Russian supplies on a large scale may not be possible in the short term. The Russia-Ukraine war, the U.S.-Iran conflict and other tensions in the Middle East have added pressure to global energy supplies, pushing up energy import costs. The Strait of Hormuz alone carries about 20% of global energy supplies.
Trade talks could face pressure
Trade talks between the two countries have been stalled for some time, and the proposed tariffs could further complicate negotiations. Analysts have warned that Washington could also use the tariffs as leverage during the talks.
India’s Commerce and Industry Minister Piyush Goyal is expected to travel to the U.S. later this month for a G20 trade ministers’ meeting. The meeting could provide an opportunity for discussions with his U.S. counterpart on the trade agreement and the dispute over New Delhi’s purchases of Russian oil.