New York : India on Thursday said it would protect its trade and economic interests after the US Congress passed a Russia sanctions bill that could expose countries such as India and China to tariffs of up to 100% for buying Russian oil and gas. The External Affairs Ministry said the government remained committed to ensuring energy security for 1.4 billion people and would continue to pursue it through diversified sourcing and based on evolving market dynamics.
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” the ministry said, adding that it would work closely with trade and industry bodies to deal with the implications of the US move. The US House passed the legislation, formally called the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, by a 262-159 vote.
The bill had already cleared the US Senate by an 86-11 vote last month and it now heads to the White House, where US President Donald Trump is expected to sign it into law. The legislation seeks to increase economic pressure on Moscow over its war in Ukraine by targeting Russia’s energy and defence sectors as well as its so-called “shadow fleet” of tankers accused of helping Moscow evade existing sanctions.
The bill would instead give Trump the authority to impose tariffs of up to 100 per cent on countries that continue to buy Russian oil and gas, if the relevant provisions are triggered. Russian oil became increasingly important to Indian refiners after Western sanctions following the war in Ukraine reshaped global energy flows. The US has sought to put economic pressure on countries purchasing Russian energy, arguing that oil and gas revenues provide Moscow with a key source of funding for the war.
If Washington were to use the authority provided under the legislation against India, the impact would primarily be felt through Indian exports to the US. According to the House Ways and Means Committee, the bill directs tariffs of up to 500 per cent on Russian goods. It also provides for duties of up to 100 per cent on goods from countries covered by its Russian oil and gas purchase provisions.
Those provisions cover major Russian energy importers and leading facilitators of oil sanctions evasion. The committee said additional countries could be added following reviews by the US Trade Representative every 180 days. 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.
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