PTI
New Delhi
India on Thursday warned that a US sanctions bill on Russia that provides for slapping punitive tariffs of up to 100% on top Russian crude oil importing nations carries potential implications for ties between New Delhi and Washington as well as for global energy market.
The US House of Representatives on Wednesday evening passed the Lindsey O Graham Sanctioning Russia and Iran Act 2026 that authorises US President Donald Trump to impose sanctions on Russia and steep tariffs on its leading trading partners such as India and China.
In its reaction, New Delhi also said that it will take all necessary steps to protect its economic interests and ensure energy security for the nation.
The Ministry of External Affairs (MEA) said India remains “firmly committed” to ensuring the energy security of its 1.4 billion people and will take all “necessary measures” to protect its trade and economic interests.
It said the Indian side is monitoring further developments in the matter following the passage of the Act in the US Congress.
Russia has been a leading source for India’s energy security requirements. India’s procurement of Russian crude oil has gone up significantly in the last few years.
“As stated on several earlier occasions, India remains firmly committed to ensuring energy security for its 1.4 billion people,” it said. “It will continue to do so through diversified sourcing and on the basis of evolving market dynamics,” it said.
The MEA said the issue has been “discussed at high levels in recent months with various US interlocutors”. “Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side,” it said.
The MEA further said that the Indian side has also made clear to the US side its determination to take all necessary measures to protect the country’s trade and economic interests. “The government will work closely with Indian trade and industry bodies to deal with the implications of these developments,” it said.
The sanctions bill was passed by the US Senate last month. The House of Representatives passed the bill in a 262-159 vote. It will become a law once Trump signs it.
The bill seeks to impose sanctions not only on Russia’s leadership and energy sector, but also on the “shadow fleet” of vessels that enable Moscow to evade sanctions on oil deliveries.
It also seeks to authorise Trump to impose stiff tariffs on China, India and other countries to reduce their dependence on Russian oil and gas, as well as additional sanctions on Iran.
Ajay Srivastava of economic think-tank Global Trade Research Initiative said the “threat” of American sanctions on New Delhi under the new legislation is “serious”.
“India may face more pressure than China. China buys more Russian crude than India, but Washington will put greater pressure on New Delhi, as it may fear retaliation by China,” he said.
Srivastava said India must protect its interests. “The new US Act turns sanctions into a trade weapon against India,” he said. The US may offer lower tariffs for an unequal trade deal, he said, referring to ongoing negotiations between the two sides for a trade pact.
“Washington will now threaten tariffs of up to 100% and then offer a lower rate if New Delhi cuts Russian oil purchases and accepts concessions under a deeply unequal bilateral trade agreement,” Srivastava said. “India should not trade away its energy security for temporary tariff relief,” he added.
