New Delhi (Rajeev Sharma): India has warned that the latest US sanctions legislation could create fresh complications for bilateral ties, while making it clear that the country will take steps to defend its trade and economic interests.
The reaction followed the passage of the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by the US Congress. The legislation gives President Donald Trump the authority to impose tariffs of as much as 100 per cent on countries that continue to purchase Russian oil and gas.
For India, the development is particularly significant because Russian crude has become an important part of the country’s energy supply. New Delhi has repeatedly maintained that its decisions on oil purchases are driven by domestic energy requirements, market conditions and the need to keep supplies stable.
The Ministry of External Affairs said India had already raised its concerns with American officials during discussions held over the past several months. Indian officials, according to the ministry, had pointed out that the proposed measures could have consequences not only for the two countries’ relationship but also for global energy markets.
India is now assessing the implications of the legislation and has indicated that it will coordinate with domestic trade and industry groups as the situation develops.
The legislation does not automatically impose a 100 per cent tariff on Indian goods. Instead, it gives the US president the power to introduce such measures against countries purchasing Russian energy. The final impact on India will therefore depend on how Washington chooses to use those powers.
The issue comes at a sensitive time for India-US economic relations, with trade and market access already forming an important part of discussions between the two countries. Any additional tariff measures could increase pressure on Indian exporters and complicate negotiations on broader commercial arrangements.
At the same time, reducing Russian oil purchases is not a straightforward option for New Delhi. India imports a large share of its crude requirements and has sought supplies from multiple regions to protect itself from sudden disruptions in the international market.
The government reiterated that energy security would remain at the centre of its approach.
India’s strategy, it said, would continue to involve sourcing energy from different suppliers while responding to changes in global markets. That approach allows New Delhi to keep its options open as it weighs the economic consequences of the new US measures.
The coming weeks could therefore prove important for both sides. Washington will have to decide how aggressively to use the powers provided under the new legislation, while India is expected to engage with US authorities to protect its commercial interests and maintain access to reliable energy supplies.
For New Delhi, the challenge will be to manage the pressure created by the sanctions without compromising the energy requirements of a country of more than 1.4 billion people.
