Indo-Pacific — 2026-09-20

India Warns New US Russia Sanctions Bill Could Harm Bilateral Ties as Delhi Imports 45 Percent of Oil From Moscow

BLUFTrump almost certainly signs the bill into law within 30 days, forcing New Delhi into a costly choice between absorbing punitive tariffs or unwinding its deep dependence on Russian crude.

The US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 by a 262-159 vote on Wednesday, following Senate approval by an 86-11 vote on August 7, and the bill now awaits President Trump's signature 1. The legislation authorizes tariffs of up to 100 percent on countries including India and China that purchase Russian oil and gas, alongside sanctions targeting Russia's energy and defense sectors, President Putin and other officials, and vessels linked to sanctions evasion, while also expanding sanctions on Iran 12. India's Ministry of External Affairs said on Thursday it had raised the issue with US interlocutors in recent months and had "very clearly articulated" the potential implications for bilateral relations and the international energy market, adding that India "has also made clear its determination to take all necessary measures to protect its trade and economic interests" 123. The ministry said India remains "firmly committed to ensuring energy security for its 1.4 billion people" through diversified sourcing and would work with domestic trade and industry bodies on the bill's implications 13. India ranks as the world's third-largest oil importer and among the biggest buyers of Russian crude 23.

Analysis
Enactment shifts the confrontation from congressional politics to implementation, forcing New Delhi to choose between absorbing tariffs up to 100 percent or accelerating diversification away from Russian crude at scale, a ceiling down from the 500 percent floated during July's Senate deliberations. Trump almost certainly signs the act within 30 days, given the veto-proof 86-11 Senate margin, the 262-159 House vote, and no signaled White House objection. We hold high confidence in this judgment based on consistent statutory language across both chambers' texts and the absence of any veto threat. Sourcing rests on two independently reported primary accounts corroborated without contradiction by two additional outlets, producing broad convergence on the MEA's position. India's statement may function primarily as domestic signaling to reassure trade and industry stakeholders rather than mark genuine rupture, since New Delhi has resisted similar pressure before without altering purchases. If signature lands within the window, Indian refiners and the finance ministry must move immediately to substitute crude or absorb the cost, while any slippage past 30 days preserves a narrow negotiating window for carve-outs.

4 sources

'We will protect our interests': India reacts as US Congress passes Russia sanctions bill - The Week
India warns new US tariffs over Russian oil could impact ties - Al Jazeera
India warns U.S. new tariffs to deter buyers of Russian oil could impact ties - The Japan Times
India Warns US Oil Sanctions Bill Could Hurt Bilateral Ties - Bloomberg