US Russia Sanctions Bill: India Warns of ‘Potential Implications’ for Bilateral Ties as Trump Gets Tariff Powers

Yugcharan News / 18-09-2026

New Delhi: India has cautioned that the latest move by the United States to strengthen sanctions against Russia could have implications for New Delhi-Washington relations, as the US Congress has approved legislation that gives President Donald Trump the authority to impose tariffs of up to 100 per cent on countries continuing to purchase Russian oil and gas.

The development comes at a sensitive time for India and the United States, with the two countries working to advance discussions on a bilateral trade agreement after months of negotiations. New Delhi has also repeatedly maintained that securing affordable and reliable energy supplies remains a key national priority.

The US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by 262 votes to 159 on September 16. The legislation had already cleared the Senate and has now been sent to President Trump for his consideration and signature.

The bill is aimed primarily at increasing economic pressure on Russia, particularly over its energy exports. However, because countries such as India and China remain major buyers of Russian energy, the legislation has implications beyond the US-Russia relationship.

India’s Ministry of External Affairs said it was monitoring developments following the passage of the legislation. The ministry reiterated that India would continue to focus on energy security for its 1.4 billion people and would pursue diversified sources of energy based on changing market conditions.

The MEA also said the issue had been discussed at senior levels with American officials in recent months. According to the ministry, India had clearly communicated its concerns about the possible consequences of the proposed measures, not only for bilateral relations but also for international energy markets.

US Bill Gives Trump Wide Tariff Authority

The legislation represents a significant expansion of the tools available to the US administration in dealing with countries that continue energy trade with Russia.

The House-approved measure gives the US President the authority to impose tariffs of as much as 100 per cent on countries purchasing Russian oil and natural gas. India and China are among the major countries that could potentially face the consequences of such action because of their energy trade with Moscow.

However, the passage of the legislation does not itself mean that a 100 per cent tariff has automatically been imposed on Indian goods. The legislation provides the authority, while any decision to exercise that authority would remain with the US administration.

The bill passed the House with support from members of both major parties. According to the reported vote, 203 Republicans, 58 Democrats and one Independent supported the legislation, while 152 Democrats and seven Republicans voted against it.

The measure was initially associated with the late Senator Lindsey Graham and has since been named the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. Its stated objective is to increase economic pressure on Russia and restrict revenue streams associated with its energy sector.

Some US lawmakers have nevertheless expressed reservations about giving the President extensive tariff powers. Critics have argued that broad tariff authority could have consequences for the US economy and international trade, while supporters have presented the measure as an additional instrument to pressure Russia.

India Highlights Energy Security

For New Delhi, the central issue is the availability and affordability of energy.

India imports the overwhelming majority of the crude oil it consumes, making international prices, supply disruptions and geopolitical developments important factors in domestic energy planning. The Indian government has repeatedly said that its purchasing decisions are guided by national interests, market conditions and energy security.

The MEA said India would continue sourcing energy from diversified suppliers. It also stated that the government would take necessary measures to protect India's trade and economic interests and work with domestic trade and industry bodies to address the consequences of the latest developments.

The ministry's response was carefully worded. Rather than announcing any immediate change in India's purchases from Russia, it said the government was monitoring further developments and had already raised the possible consequences with US interlocutors.

India has maintained extensive economic, defence and diplomatic ties with Russia for decades. Russian energy supplies became particularly important for India after the global energy market was disrupted following Russia's invasion of Ukraine in 2022.

According to data cited in the source report from the Centre for Research on Energy and Clean Air, India's spending on Russian energy reached €5.5 billion in June 2026. Crude oil accounted for the largest share of that spending, at approximately €4.5 billion.

The figures underline why any major change in the terms of India's Russian energy purchases could have wider economic implications.

Pressure Comes Amid India-US Trade Negotiations

The latest development also arrives as India and the United States are attempting to advance bilateral trade negotiations.

The two countries have been engaged in discussions aimed at strengthening their economic relationship, but tariff-related disagreements have complicated the process. The new Russia sanctions legislation introduces another issue into those negotiations because its potential tariff provisions could affect countries that continue importing Russian energy.

Indian officials have conveyed their concerns to senior American representatives, including US Secretary of State Marco Rubio and US Ambassador to India Sergio Gor, according to the source report.

External Affairs Minister S Jaishankar is also expected to travel to the United States for the United Nations General Assembly session. This could provide an opportunity for further discussions between Indian and American officials on the sanctions legislation, energy trade and broader bilateral issues.

The two sides are also expected to remain engaged through upcoming diplomatic meetings, including discussions involving the Quad.

Potential Impact on Global Energy Markets

India's concerns are not limited to its own trade relationship with Washington.

The MEA has also pointed to possible consequences for the international energy market. Russia remains one of the world's major energy producers, and changes in its ability to sell oil and gas to major customers could influence global supply patterns and prices.

For India, a reduction in access to Russian crude could require increased purchases from other suppliers. Such a shift could alter India's import mix and expose the country to different prices, transportation costs and supply arrangements.

At the same time, any significant increase in tariffs on Indian exports to the US could create challenges for businesses that depend heavily on access to the American market. The actual impact would depend on whether and how the US administration chooses to use the powers provided under the legislation.

The legislation therefore creates a new layer of uncertainty for businesses and policymakers while leaving several important questions unresolved.

India Signals It Will Protect Economic Interests

The Indian government's response indicates that New Delhi is preparing to address the issue through diplomatic and economic channels.

The MEA said India remained committed to protecting its trade and economic interests and would work with Indian industry to deal with the consequences of the developments.

For now, there has been no indication from the Indian government that it intends to abruptly end its Russian energy purchases solely because of the US legislation. Instead, the official position remains focused on energy security, diversification and monitoring the evolving situation.

The passage of the bill also does not establish that India will definitely face a 100 per cent tariff. That would depend on subsequent action by the US administration and the implementation of the legislation.

The immediate focus, therefore, is expected to remain on diplomatic engagement between New Delhi and Washington, particularly as the two countries continue discussions on trade and economic cooperation.

The latest US move places India in a complicated position, balancing its long-standing energy relationship with Russia against its expanding strategic and economic partnership with the United States. How Washington ultimately uses the new powers and how New Delhi responds could influence not only bilateral trade discussions but also India's broader energy strategy in the months ahead.

For India, the government's stated priority remains clear: maintaining energy security while protecting its economic and trade interests as the international situation continues to evolve.