India has issued a carefully worded but firm warning to the United States over the new sanctions legislation targeting Russia and Iran, stressing that the move could have implications not only for the international energy market but also for the broader bilateral relationship between New Delhi and Washington.
The warning followed the passage of the Lindsey O Graham Sanctioning Russia and Iran Act of 2026 in the US House of Representatives. The legislation grants US President Donald Trump the authority to impose tariffs of up to 100% on countries that continue to purchase Russian oil and gas. India and China, as two of the largest buyers of Russian energy, could potentially be affected.
In a statement issued on Thursday, the Ministry of External Affairs confirmed that New Delhi was closely monitoring developments after the bill cleared Congress.
The MEA noted the passage of the legislation and emphasised that India was following the matter with great attention.
At the centre of India’s response lies its longstanding position that securing affordable and reliable energy supplies is a national priority. The ministry reiterated that India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to pursue diversified sourcing strategies based on evolving market dynamics.
The MEA also underlined that New Delhi had already raised its concerns with Washington at senior levels, making clear that this was not the first time India had flagged the possible consequences of the US move. The issue has been discussed at high levels in recent months with various US interlocutors.
India’s statement further highlighted that the potential implications extend beyond oil purchases. The ministry stressed that the measures could affect not only the bilateral relationship but also the international energy market.
New Delhi has signalled that it is prepared to protect its economic interests in response to these developments. The government has made clear its determination to take all necessary measures to safeguard trade and economic interests. It will work closely with Indian trade and industry bodies to manage the fallout.
The legislation passed the US House by 262 votes to 159 after clearing the Senate last month. It targets Russia’s energy and defence sectors and also seeks to expand sanctions relating to Iran. The bill now awaits Trump’s signature to become law.
For India, the issue is particularly sensitive because Russian crude has become a major component of its energy imports in recent years. New Delhi has consistently maintained that its energy purchases are driven by national requirements, prevailing market conditions and the need to ensure stable supplies.
The development comes at a delicate moment in India-US economic ties, with both countries engaged in negotiations on a bilateral trade agreement after months of discussions. The possibility of tariffs of up to 100% on buyers of Russian energy adds another layer of complexity to these talks.
Although the legislation gives Trump the authority to impose such tariffs, it does not automatically mean that India will face a 100% tariff. The actual decision, rate and scope would depend on the administration’s discretion.
Nevertheless, the timing has raised concerns in New Delhi, as any additional US trade restrictions could affect negotiations already focused on market access, tariffs and the broader economic relationship.
This episode underscores the growing tension between Washington’s sanctions-driven approach and India’s insistence on prioritising affordable energy security. It also highlights the potential for sanctions policy to spill over into wider trade and diplomatic relations.
Agencies
