India warns US that potential Russian oil tariffs could impact bilateral ties
India responds to US Congress bill authorizing up to 100 percent tariffs on buyers of Russian oil and gas.
Quick Look
India warned the US that new measures to levy tariffs on Russian oil purchases could harm bilateral ties, following a US Congress bill authorizing President Donald Trump to impose up to 100 percent tariffs on buyers of Russian energy.
AI-generated summary
Why It Matters
India has maintained economic ties and imported oil from Russia despite Western sanctions following the invasion of Ukraine in February 2022.
India has warned the United States that new measures to levy tariffs over the purchase of Russian oil could impact bilateral ties, hours after the US Congress approved a bill that would give President Donald Trump new abilities to punish buyers of Russian oil.
The US House of Representatives on Wednesday passed a sweeping sanctions and tariff bill intended to increase economic pressure on Russia over its invasion of Ukraine.
The bill targets Russia’s energy and defence sectors, President Vladimir Putin and other senior officials, as well as Moscow’s so-called shadow fleet of tankers used to circumvent Western sanctions.
It also authorises President Donald Trump to impose stiff tariffs of up to 100 percent on countries, including India, to reduce their dependence on Russian oil and gas, and extend sanctions on Iran.
The bill has been sent to Trump to sign into law.
India’s foreign ministry said on Thursday that it “remains firmly committed to ensuring energy security for its 1.4 billion people”.
The Indian foreign ministry said that it had noted the bill’s passage, adding that New Delhi had raised the issue with various US interlocutors in recent months, and had “very clearly articulated” the potential implications for the bilateral relationship and the international energy market.
“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” it said in a statement.
The government would work closely with trade and industry bodies to deal with the legislation’s implications, it added.
India, the world’s third-biggest oil importer, is among the biggest buyers of Russian oil, which is seen as helping Moscow replenish its budget since it launched its full-scale invasion of Ukraine in February 2022 and was hit with sweeping Western sanctions.
New Delhi has repeatedly sought to resist pressure to reduce its oil trade with Russia, saying its large population and economy need secure, affordable and reliable energy supplies.
What to Watch
AI outlook — possibilities, not facts
President Donald Trump will receive the bill to sign into law.
Very likely · Within days
Open Questions
- Will President Donald Trump sign the bill into law?
- What specific countermeasures will India take to protect its trade interests?
