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Economy, business and finance
India reacts to 100% US tariff threat over Russian oil, says ‘determined to protect trade, economic interests’
India said it is ‘monitoring’ the newly passed US Sanctions on Russia and Iran Act, which risks imposing tariffs of up to 100% on Russian oil purchases. The MEA reaffirmed energy security for 1.4 billion citizens via diversified sourcing and vowed to protect India's trade and economic interests.
India reacted firmly to the passage of the Sanctioning Russia Act of 2026 in the US Congress, saying that the Indian side has "made clear its determination to take all necessary measures to protect its trade and economic interests."
The Centre said it has noted the passage of the Sanctioning Russia and Iran Act, which puts India at risk of tariffs of up to 100. "We are monitoring further developments on this matter," the Ministry of External Affairs said in a statement on Thursday.
The Sanctioning Russia Act of 2026 allows the US President to impose tariffs of up to 100% on countries, including India, that are among the largest importers of Russian oil and gas if they continue new purchases after the bill's enactment.
India faces a potential 100% tariff due to its significant purchases of Russian oil, as the US seeks to deter support for Russia's economy amid ongoing geopolitical tensions, particularly related to its war in Ukraine.
India has reacted firmly by asserting its commitment to protect its trade and economic interests, stating its intention to ensure energy security through diversified sourcing despite the tariff threats.
The US tariffs could substantially increase the cost of importing Russian oil for India, potentially leading to a decrease in imports and impacting India's energy security and bilateral trade with Russia.
India is monitoring the situation closely and is prepared to work with trade and industry bodies to address the implications of the potential tariffs, emphasizing its strategy of diversified energy sourcing.
In a statement released on Thursday, the Ministry of External Affairs said, “The Government of India has noted the passage of the Sanctioning Russia and Iran Act in the US Congress. We are monitoring further developments on this matter.”
It added, “As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics.”
The MEA said, “This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side.”
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests. Government will work closely with Indian trade and industry bodies to deal with the implications of these developments,” the ministry's statement read.
The Lindsey O. Graham Sanctioning Russia Act of 2026 was introduced in the US Senate on September 16. It proposed to "increase the rate of duty up to 100% ad valorem on all goods imported into the US from a country that was among the five largest importers of Russian-origin crude oil or natural gas if such country knowingly makes new purchases of such products after enactment of the bill."
The bill to impose sanctions on Russia and steep tariffs on countries buying Russian oil and gas, including India, could expose New Delhi to tariffs of up to 100%, think tank GTRI was quoted as saying by PTI on Thursday.
However, the actual impact of new tariffs on Indian exports can be assessed only after the US announces the tariff rates, product coverage and implementation timetable, it said.
The bill now sits on President Trump’s desk, with his signature anticipated in the days ahead.
According to MEA, bilateral trade between India and Russia reached a record high of USD 68.7 billion in FY 2024-25 and 59.863 billion for FY 2025-26.
India was the second-largest buyer of Russian fossil fuels in June 2026, importing a total of EUR 5.5 bn of Russian hydrocarbons, according to June 2026 analysis of Russian fossil fuel exports and sanctions by Centre for Research on Energy and Clean Air (CREA).
India’s imports of Russian crude oil reached a record high, rising 34 percebt month-on-month, purchasing EUR 4.5 bn of Russian crude in June
Akriti Anand is a Deputy Chief Content Producer at LiveMint. She is a digital journalist with more than six years in the news industry.<br><br> In her current role, she covers both national and international politics, and also keeps a close watch on the latest trends in science and space exploration. <br><br> Akriti joined the LiveMint team in October 2023. Before this, she built a strong career at other major media houses. She worked as a senior sub-editor at India Today. Later, she moved to CNBCTV-18. There, she covered high-pressure topics like breaking news and major elections. She spent much of her time analysing Parliament bills and complex political debates. She is also a skilled editor who knows how to polish a story for a digital audience. <br><br> One of her career highlights happened at CNBCTV-18. She made her first television debut during the Chandrayaan-3 mission. She also provided special on-air coverage for the Karnataka Elections. <br><br> When she is not busy with breaking news, Akriti loves to write explainers and interview experts on a wide range of issues. She also enjoys making complex space missions easy for everyone to understand. <br><br> Her education helps her tackle these diverse subjects. She holds a BA in English Literature, a Postgraduate Diploma in Mass Communication, and a Master’s degree in Development Studies. She is currently expanding her knowledge in climate journalism.<br><br> Connect with Akriti here<br> LinkedIn: <a href="https://www.linkedin.com/in/akriti-anand-868285199">https://www.linkedin.com/in/akriti-anand-868285199</a><br> Twitter/X: <a href="https://x.com/AkritiAnand7">https://x.com/AkritiAnand7</a><br> Email: akriti.anand@htdigital.in