India has confirmed it is closely monitoring the progress of the US Senate‑passed Sanctioning Russia and Iran Act of 2026, which authorises tariffs of up to 100 per cent on nations buying Russian oil and gas.

The legislation, passed with an 86‑12 vote, now moves to the House of Representatives, raising potential implications for India as one of the largest importers of Russian crude.

The Ministry of External Affairs stated that New Delhi is tracking developments in Washington with care.

MEA spokesperson Randhir Jaiswal emphasised that India’s energy policy is firmly rooted in national interest and the need to secure fuel supplies for its 1.4 billion citizens. He reiterated that India’s sourcing strategy is diversified and includes imports from the United States.

Jaiswal underlined that India remains engaged with relevant stakeholders in the US at multiple levels. He noted that dialogue continues across official channels to ensure clarity on the proposed measures and their potential impact on bilateral trade.

The Senate’s passage of the Sanctioning Russia and Iran Act of 2026 marks a significant step in Washington’s attempt to intensify pressure on Moscow.

The bill grants President Donald Trump broad executive authority to enforce primary and secondary sanctions against Russia and associated entities. It also empowers the administration to impose trade duties of up to 100 per cent on goods imported from countries purchasing Russian hydrocarbons or facilitating sanction evasion.

Section 113 of the Act specifically targets the five largest importers of Russian energy. India, China, Slovakia, Hungary and Azerbaijan are named as countries that could face punitive tariffs.

The provision also extends to nations enabling sanctions evasion through shadow fleet tanker operations, a mechanism widely used to bypass restrictions on Russian oil exports.

The legislation requires the US Trade Representative to conduct biannual reviews every 180 days. These evaluations will reassess the top purchasing nations and adjust tariff structures according to changing procurement patterns. This mechanism ensures that the sanctions framework remains dynamic and responsive to shifts in global energy trade.

The Act goes beyond tariffs. It includes prohibitions on investment in Russia’s energy sector, restrictions on sovereign debt purchases, bans on uranium imports, and measures against Russian financial institutions. It also extends the Iran Sanctions Act of 1996, thereby broadening the scope of punitive measures to Tehran.

India has consistently defended its reliance on Russian crude as essential for energy security and consumer affordability. Officials argue that discounted Russian oil helps stabilise domestic fuel prices and supports broader economic resilience.

At the same time, New Delhi has expanded imports from other suppliers, including the US, Middle Eastern producers and African exporters, to maintain diversification.

The MEA’s cautious response reflects the delicate balance India seeks to maintain. On one hand, it must safeguard affordable energy supplies; on the other, it faces mounting pressure from Washington to reduce dependence on Russian hydrocarbons. The outcome of the House review will be closely watched in New Delhi, as the legislation could reshape trade dynamics and impose significant costs on Indian exports if tariffs are enacted.

ANI