Key facts
- US House passed bill threatening 100% tariffs on countries buying Russian oil.
- India is a major buyer of Russian oil and faces potential tariffs.
- India stated it will prioritize energy security and protect trade interests.
- The bill aims to stifle Russia's export revenues to force an end to the war in Ukraine.
- India has saved an estimated $12.6 billion from its shift to Russian crude since 2022.
The US House of Representatives has passed a bill that could impose tariffs of up to 100% on countries purchasing Russian oil and gas, a move that has drawn a strong response from India. India's Foreign Ministry stated it will continue to prioritize its population's energy security and take all necessary measures to protect its trade and economic interests, warning that any US action affecting energy security could sour bilateral ties. The legislation, which now heads to President Donald Trump's desk, aims to stifle Russia's export revenues and force an end to the war in Ukraine. India and China are identified as the most exposed countries due to their substantial purchases of Russian energy. According to the Centre for Research on Energy and Clean Air (CREA), China accounted for half of Russia's crude exports between December 2022 and August 2026, with India following at 37%. For India, Russia was the largest supplier of crude oil in fiscal year 2026, providing 30.3% of its imports, valued at $40.8 billion out of a total $134.7 billion import bill. In July, Russian crude constituted more than half of India's imports. Ajay Srivastava, a former Indian trade official, criticized the bill as a "blunt and dangerous attempt to pressurize India to sign the bilateral trade agreement on one-sided terms," arguing that India's purchases aim to secure affordable energy for its population and stabilize global supplies. Democratic Senator Richard Blumenthal advised India and China to seek energy sources elsewhere. While countries typically have 180 days to comply with such measures, the president can shorten this period. The US imported approximately $104 billion of goods from India in 2025, with total bilateral trade in goods and services around $240 billion. Indian exports to the US include electronics, pharmaceuticals, machinery, and textiles.
