India vows to protect energy security as US Russia bill opens door to 100% tariffs
India is closely watching a US bill that could allow tariffs of up to 100% on countries buying Russian energy. With Russia accounting for 30.3% of India’s crude imports in FY2026, New Delhi said it would prioritise energy security, diversify supplies and protect its trade and economic interests.
India has confirmed it is monitoring the passage of the Sanctioning Russia and Iran Act by the US Congress. The legislation would allow President Donald Trump to impose tariffs of up to 100% on countries, including India, that purchase Russian oil and gas. However, the Indian Ministry of External Affairs emphasized that its energy security remains its top priority, and it will continue to diversify its crude sources based on market conditions.
The issue of India's increased dependence on Russian crude has been a point of concern for US lawmakers, particularly since 2022. In the fiscal year 2026, India purchased $40.8 billion worth of Russian crude, accounting for 30.3% of its total crude imports of $134.7 billion. Russian crude's share in India's crude imports rose to 51% by July 2026, as refineries purchased discounted barrels following the Russia-Ukraine conflict.
India's energy security priorities have been discussed at high levels with US interlocutors, and the government has conveyed the potential impact of the legislation on bilateral ties and the international energy market. Russia now accounts for 51% of India's imported crude, up from 47% during the Iran war. Any disruption in Russian crude flows could increase global oil market volatility, as replacing Russian supplies quickly may prove challenging due to limited spare production capacity.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
