100% tariffs loom: Will US sanctions bill make India stop buying crude from Russia?

India pledged on Thursday to employ all essential steps to safeguard its economic interests following the US House of Representatives' approval of sanctions aimed at crippling Russia’s economy amid its Ukraine conflict. The legislation zeroes in on Russia’s energy and defense sectors, President Vladimir Putin, and high-ranking officials, as well as the nation’s "shadow fleet" of tankers that exploit loopholes to evade Western sanctions.

Additionally, it empowers US President Donald Trump to impose tariffs up to 100% on significant Russian oil and gas importers, potentially including China and India, to stymie revenue supporting Moscow's war efforts.

Despite these sanctions, India's foreign ministry underscored its "unwavering commitment to guaranteeing energy security for its 1.4 billion citizens." It will continue sourcing energy from diverse suppliers, adapting to evolving market conditions. India and Russia share a strategic partnership and crucial military support. The ministry emphasized India's resolve to protect its trade and economic pursuits, acknowledging previous discussions with US officials regarding the sanctions' implications for bilateral ties and the global energy landscape.

In March, India significantly ramped up crude imports from Russia, reaching 2.25 million barrels daily, primarily due to temporary US waivers. Shipments peaked at 2.81 million barrels in July, according to trade data from Kpler, but have since declined to 2.07 million barrels in the latest report.