Why India's Russian oil trade faces a fresh US threat?
New Delhi: Just months after the US “temporarily” allowed India to purchase Russian oil amid tensions in the Middle East, fresh concerns have emerged for New Delhi as the US Senate has overwhelmingly passed a Bill that could impose tariffs of up to 100 per cent on countries that continue to purchase Russian oil and gas, potentially putting India and other major buyers in Washington's crosshairs.
The Sanctions is seen as one of Washington’s strongest attempts yet to squeeze countries accused of helping finance Moscow’s war in Ukraine.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 passed 86-11 and now heads to the House of Representatives. The tariffs would not take effect automatically: the bill must first become law, and Trump would then have discretion over whether to impose them.
If enacted, the Bill would empower President Donald Trump to impose tariffs of up to 100 per cent on goods from countries that are among the largest importers of Russian crude oil or gas and are deemed to be enabling Russia to evade sanctions.
Earlier, the Donald Trump-led administration put pressure on India - a major buyer of Russian energy - to stop buying its oil in an effort to reduce money flowing to fund the invasion.
Russian oil makes up an estimated 20% of India's total imports. The waiver marks a notable shift in the US approach to India's Russian oil imports.
In August 2025,Trump imposed 50% tariffs on India, including a 25% levy for importing oil from Russia. Trump alleged India's purchase of Russian oil was helping fund Russia's war in Ukraine.
New Delhi has always defended its purchase of Russian crude, saying that it needs to meet the energy needs of its vast population and has the right to do business with its trading partners.
In February, Trump announced a trade deal with India which slashed tariffs to 18%. As per the deal, New Delhi agreed to stop purchasing Russian oil. Subsequently, Trump issued an executive order to remove the additional 25% punitive levy linked to the purchase of Russian oil.