Washington/New Delhi: A new development in the US Congress has put Indias continued purchases of Russian crude oil under renewed scrutiny, after the US House of Representatives approved legislation giving President Donald Trump authority to impose tariffs of up to 100% on major buyers of Russian oil and gas. The legislation, formally known as the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, cleared the House by a 262-159 vote on Wednesday. The measure had already passed the Senate and will now move to President Trump for consideration.
Jeanne Shaheen Supports Stronger Action
Democratic Senator Jeanne Shaheen, one of the lawmakers supporting the legislation, said the US needed to send a strong signal to countries that continue purchasing Russian energy. Her argument is that revenue from Russian oil and gas sales helps Moscow sustain its war effort in Ukraine. During congressional discussions, Shaheen and other supporters of the legislation have specifically pointed to major Russian energy customers, including India and China. Shaheen has previously backed the legislation as part of a bipartisan effort to increase economic pressure on Russia and countries that continue to purchase its energy exports.
India Among Countries Facing Potential Tariffs
India has emerged as one of the countries most exposed to the proposed tariff mechanism because it remains a major buyer of Russian crude. The legislation gives the US president the authority to impose additional tariffs on countries that purchase Russian oil or natural gas. India and China are among the major buyers that could potentially come under the measure. However, an important distinction is that the bill does not automatically impose a 100% tariff on India. Instead, it gives the US president the authority to introduce tariffs of up to that level under the conditions outlined in the legislation. Whether and how that authority is ultimately used would depend on the Trump administration.
China and India at the Centre of the Debate
The debate over Russian energy purchases has increasingly focused on China and India, two of the world's largest importers of Russian crude. US lawmakers backing the bill argue that continued purchases provide Moscow with an important source of revenue despite Western sanctions. Senator Shaheen has previously said that the legislation is designed to increase pressure on Russia by targeting major purchasers of its energy. The legislation therefore goes beyond sanctions directly targeting Russian companies and officials. It also creates a mechanism through which countries purchasing Russian energy could face economic consequences in their trade with the United States.
What the New Bill Contains
The legislation is broader than the tariff provision affecting Russian oil buyers. It includes additional sanctions targeting Russia's energy and defence sectors, along with measures concerning financial entities and vessels associated with efforts to circumvent existing sanctions. One of the areas receiving particular attention is Russia's so-called shadow fleet of oil tankers. US lawmakers have argued that such vessels help Russia continue transporting energy despite international restrictions. The bill also contains provisions related to Iran, expanding the wider sanctions framework beyond Russia.
Why the 100% Tariff Provision Matters for India
For India, the proposed authority comes at a sensitive point in US-India trade relations. Russian crude has become an important component of India's overall oil supply, particularly after the global energy market was disrupted by the Russia-Ukraine war. According to data cited by the Economic Times, India imported about $40.8 billion worth of Russian crude in fiscal 2026, accounting for nearly one-third of its total crude imports. Any substantial increase in US tariffs could therefore create wider implications for India's exporters if Washington chooses to use the authority granted by the legislation. At the same time, the actual economic impact will depend on how the Trump administration implements the measure, including whether exemptions, waivers or other provisions are applied.
Bill Now Heads to Trump
The House passage represents a major step forward for the Russia sanctions package. The Senate had previously approved the legislation by an 86-11 vote, and the House has now passed its version with bipartisan support. The next major step is presidential action. If Trump signs the legislation into law, his administration will have the statutory authority to consider tariffs of up to 100% against major purchasers of Russian oil and gas. For India, the development does not mean that a 100% tariff has already been imposed. Instead, it creates a potential new source of trade pressure linked to New Delhi's purchases of Russian energy. The issue is likely to remain closely watched as Washington weighs its Russia policy, while India continues to balance its energy requirements, trade interests and relations with both the United States and Russia.
