NEW DELHI, September 18, 2026: A new US congressional bill targeting major purchasers of Russian oil has placed India in a difficult position, as New Delhi weighs its energy needs against the potential impact of additional US tariffs on Indian exports.
The proposed legislation would allow Washington to impose tariffs of up to 100% on countries, including India and China, that make major purchases of Russian oil. India is the world’s third-largest oil importer and one of the biggest buyers of Russian crude.
India Defends Energy Security
New Delhi has warned that the proposed measures could affect bilateral relations with the United States and disrupt global energy markets.
The Indian government has said it will continue to ensure energy security for its 1.4 billion people by sourcing crude from diversified suppliers. Russian oil currently accounts for more than 40% of India’s overall oil supplies, according to the Reuters report published by Dawn.
India significantly increased its purchases of discounted Russian crude after Russia’s invasion of Ukraine in 2022. The increased imports have provided India with substantial savings, but have also become a point of disagreement with Washington.
US-India Trade Talks Face Additional Pressure
The latest dispute comes as India and the United States continue discussions on a broader trade agreement.
Two Indian sources cited by Reuters said the latest tensions do not necessarily mean New Delhi will abandon efforts to reach a trade deal with Washington. However, additional US tariffs could increase pressure on Indian exporters and encourage India to pursue trade opportunities with other markets.
India has already signed a trade agreement with Britain, finalised one with the European Union and is seeking to conclude talks with Canada, according to the report.
Russian Oil Becomes A Political Issue In India
The issue has also become part of India’s domestic political debate, with opposition parties urging the government to take a stronger position.
The report noted that any increase in domestic fuel prices could create additional political pressure ahead of elections in Uttar Pradesh, Punjab and Gujarat, which are scheduled to begin early next year.
Indian officials have maintained that continued access to affordable and reliable energy is important for the country’s large population and growing economy.
What Is At Stake For India?
India’s situation involves several interconnected factors:
- Energy security: Russian crude represents more than 40% of India’s overall oil supplies, according to the report.
- US trade: Higher US tariffs could affect Indian exports to one of its major markets.
- Fuel prices: Reducing Russian oil purchases could put pressure on domestic fuel costs.
- Diplomatic relations: The issue comes amid already difficult trade discussions between New Delhi and Washington.
- Alternative markets: India may increasingly seek trade arrangements with other countries if US tariff pressure increases.
The ultimate impact will depend on the final form of the US legislation, whether and how tariffs are implemented, and how India responds to the measures
