India’s $40bn Russian lifeline faces tariff threat
A new US Senate bill could impose a 100% tariff on Indian imports of Russian crude oil, raising concerns about India's energy policy and potential trade-offs. According to GTRI, India has been relying on discounted Russian crude to reduce its oil import bill and strengthen energy security, accounting for 30.3% of its crude imports in FY2026.
The US Senate passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which could allow the US president to impose additional tariffs on countries that continue purchasing Russian energy, including India, China, Slovakia, Hungary, and Azerbaijan. However, the bill does not automatically impose the 100% tariff on India, as it must first pass the US House of Representatives.
India is also buying more US energy, which adds complexity to the tariffs. The Senate legislation is now headed back to the House for approval, and even if it becomes law, the outcome could have significant implications for India's ability to continue purchasing Russian crude oil without facing additional US trade penalties.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
