New Delhi: A proposed US sanctions bill targeting Russia has triggered fresh concerns over the future of India’s trade ties with Washington after it advanced in the US Senate with overwhelming bipartisan support. The legislation, if eventually enacted into law, could empower the US President to impose tariffs of up to 100% on imports from countries that continue purchasing Russian crude oil and natural gas, placing India among the nations that may come under increased scrutiny.
Although the proposed measure does not automatically impose tariffs, it grants the US administration broad discretionary powers to take trade action against major buyers of Russian energy. The development comes at a time when India has significantly increased its imports of discounted Russian crude to safeguard its energy security amid persistent geopolitical tensions and volatility in global oil markets.
The legislation, formally titled the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, recently cleared a key procedural hurdle in the US Senate after lawmakers voted 86-12 to invoke cloture, paving the way for a final vote. Should it receive Senate approval, the bill must still pass the House of Representatives and be signed by US President Donald Trump before becoming law.
Under the proposed framework, the Office of the United States Trade Representative (USTR) would conduct reviews every 180 days to identify the world’s five largest importers of Russian energy. Based on present import patterns, India is expected to feature alongside countries such as China, Slovakia, Hungary and Azerbaijan.
However, the legislation does not mandate automatic penalties. Instead, it authorises the US President to determine whether tariffs should be imposed, identify the countries to be targeted and decide the applicable tariff rate, with the maximum capped at 100%.
For India, the issue assumes considerable importance because Russia has emerged as the country’s largest supplier of crude oil. During FY2026, Russia accounted for approximately 30.3% of India’s total crude imports, supplying oil worth nearly $40.8 billion out of India’s overall crude import bill of $134.7 billion.
Following Western sanctions on Moscow after the Ukraine conflict, India increased purchases of discounted Russian crude, enabling domestic refiners to secure affordable supplies while cushioning consumers from steep fluctuations in international oil prices. The strategy has also helped moderate inflationary pressures and strengthen India’s long-term energy security.
The importance of Russian crude has grown further following disruptions in global energy supply chains caused by conflicts in the Middle East. Uncertainty surrounding shipping through the Strait of Hormuz has affected traditional oil supply routes, encouraging India to diversify its procurement sources and reduce dependence on any single region.
According to reports, India’s imports of Russian crude touched a record 2.6 million barrels per day in June 2026, with similar import volumes expected during July. The continued purchases reflect New Delhi’s policy of prioritising affordable energy supplies in the national interest.
Trade experts believe that while China remains the world’s largest importer of Russian crude, India could still face greater attention under the proposed US legislation because the President retains wide discretion in deciding which countries to target.
Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), observed that previous US trade measures have, at times, affected India more directly than China despite differences in import volumes. He cautioned that the proposed legislation could once again expose India to higher trade risks if Washington chooses to employ tariffs as a strategic policy tool.
The bill also expands America’s broader sanctions regime against Russia by introducing secondary sanctions on shipping companies, insurers and vessels associated with Russia’s so-called “shadow fleet”. Additionally, it proposes stricter measures against major Russian financial institutions, oligarchs and senior political figures while extending provisions of the Iran Sanctions Act through 2031.
Despite the emerging concerns, analysts emphasise that the proposed legislation remains several legislative steps away from implementation. Even if enacted, exemptions are available for countries importing less than 15% of their total energy requirements from Russia while demonstrating efforts to reduce dependence.
For India, however, the broader issue extends beyond immediate tariff risks. New Delhi has consistently maintained that its energy procurement decisions are guided by national economic interests, affordability and strategic autonomy rather than geopolitical pressure. Successive governments have reiterated that ensuring uninterrupted access to affordable energy remains essential for sustaining economic growth, controlling inflation and protecting the interests of over 1.4 billion citizens.
Experts argue that India is likely to continue engaging with the United States through diplomatic and trade channels while safeguarding its sovereign right to pursue energy policies that best serve its developmental priorities.
