India warns new US tariffs over Russian oil may hit ties, vows to protect energy security

New Delhi has cautioned Washington that new tariffs on Russian oil could strain bilateral relations, according to India's foreign ministry. The warning came shortly after the US House of Representatives approved a comprehensive sanctions and tariff bill aimed at pressuring Russia for its actions in Ukraine. The legislation, now awaiting President Trump's signature, grants him the authority to impose tariffs of up to 100 percent on countries reducing their reliance on Russian energy.

This move could significantly impact India, which is a major importer of Russian oil and relies heavily on the commodity for its energy security.

The Indian foreign ministry acknowledged the passage of the bill and stated that New Delhi had previously raised the issue with various US contacts in recent months. It emphasized that the country remains dedicated to ensuring energy security for its citizens and will continue to source oil from multiple suppliers depending on market conditions. The ministry also affirmed its determination to protect India's trade and economic interests by taking necessary measures in response to the legislation.

India, the world's third-largest oil importer, holds a substantial position among Russia's buyers, providing crucial financial support to the country's economy following its invasion of Ukraine in 2022. The nation has consistently resisted calls to curtail its oil trade with Russia, citing the need for affordable and reliable energy supplies for its large population and economy.

Refiners have already arranged oil supplies for September and October, including Russian oil, according to sources familiar with the situation. Two refining sources expressed concern that a further reduction in Russian oil imports could lead to a sharp increase in oil prices, which would adversely affect their profits as they currently sell fuels at below-market prices.