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NEW DELHI — The Indian government on Friday issued a measured but firm response to a proposed U.S. bill that threatens punitive tariffs of up to 500% on countries continuing to purchase Russian crude oil.
The Ministry of External Affairs (MEA) reiterated that India’s energy procurement strategy remains centered on the “imperative to secure affordable energy” for its population of 1.4 billion, signaling that New Delhi will not easily be swayed by economic pressure from Washington.
The “Sanctioning Russia Act of 2025”
The controversy centers on the Sanctioning Russia Act of 2025, a legislative push led by U.S. Senator Lindsey Graham. According to Graham, President Donald Trump has “greenlit” the bill, which seeks to give the U.S. administration unprecedented leverage to halt the flow of Russian oil.
The bill proposes:
Massive Duties: A minimum 500% tariff on all goods and services from countries that continue to import Russian oil, gas, or uranium.
Secondary Sanctions: Targeting third-party nations and entities to dry up the revenue streams funding the Kremlin’s operations in Ukraine.
Presidential Discretion: Granting the U.S. President the power to waive these tariffs for 180-day periods if it is deemed in the U.S. national interest.
India’s Strategic Pushback
During a weekly media briefing on January 9, 2026, MEA spokesperson Randhir Jaiswal stated that India is “closely following the developments” but remains steadfast in its current policy.
“Our position on the larger question of energy sourcing is well known,” Jaiswal told reporters. “We are guided by the evolving dynamics of the global market and by the imperative to secure affordable energy for our 1.4 billion people through diverse sources.”
The statement echoes India’s long-standing policy of “Strategic Autonomy,” where the country refuses to align with any single power bloc at the expense of its own domestic stability. Analysts note that India has already faced a 50% cumulative tariff on certain goods under the Trump administration—25% of which was directly linked to Russian oil purchases.
Economic Stakes and Market Impact
The threat has already sent ripples through the Indian economy. On Thursday, the NSE Nifty and BSE Sensex both saw steep declines of nearly 1% as investors reacted to the potential disruption of India’s $120 billion export market to the U.S.
Key Challenges for India:
Trade Vulnerability: Experts from the Global Trade Research Initiative (GTRI) warn that a 500% tariff would effectively “shut down” Indian exports to the U.S.
The China Discrepancy: New Delhi has expressed private frustration that while both India and China are major buyers of Russian crude, U.S. punitive measures have focused disproportionately on India.
Refining Pivot: Some of India’s largest private refiners, including Reliance Industries, have already begun reducing Russian imports to avoid secondary sanctions, though state-run refiners continue to seek discounted barrels.
What Lies Ahead
As U.S. Ambassador-designate Sergio Gor prepares to arrive in New Delhi this weekend, the tariff bill is expected to be the primary point of contention. While Washington views the move as a necessary tool to isolate Russia, New Delhi views it as “unfair, unjustified, and unreasonable” economic coercion.
