India on US Russia sanctions bill: All measures to protect trade under consideration
Synopsis
Key Takeaways
India's Ministry of External Affairs (MEA) on Thursday, 17 September 2026 reaffirmed the country's commitment to safeguarding energy security for its 1.4 billion people, hours after the US Congress passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 — legislation that could impose tariffs of up to 100 per cent on goods from countries that are major buyers of Russian energy. New Delhi said all necessary measures to protect its trade and economic interests are under active consideration.
What the MEA Said
In a formal statement, the MEA said the Indian government has noted the passage of the legislation and is closely monitoring further developments. 'India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics,' the ministry stated.
The MEA added that the issue has been discussed at high levels in recent months with various US interlocutors, and that the potential implications — for both the bilateral relationship and the international energy market — have been 'very clearly articulated by the Indian side.' The government said it will work closely with Indian trade and industry bodies to manage the fallout from these developments.
What the US Legislation Provides
The US House of Representatives passed the bill by 262-159 on Wednesday (local time), following the US Senate's approval of 86-11 on 7 August 2026. President Donald Trump is expected to sign the measure, with his advisers having recommended approval.
According to the House Ways and Means Committee, the legislation directs tariffs of up to 500 per cent on Russian goods directly and provides for duties of up to 100 per cent on goods from countries covered by its Russian oil and gas purchase provisions. The bill targets Russian officials, banks, energy interests, and foreign entities supporting Moscow's military operations in Ukraine. Additional countries could be added following reviews by the US Trade Representative every 180 days.
India's Exposure and a Potential Exemption
India has emerged as one of the largest buyers of discounted Russian crude since Western sanctions were imposed following Russia's invasion of Ukraine. The bill's passage therefore carries direct implications for New Delhi's energy import strategy.
However, the supplied statements do not identify India as a designated target, nor do they establish an India-specific tariff rate. Notably, an exemption clause — flagged by Senator Katie Britt's office — covers countries whose Russian natural gas imports represent less than 15 per cent of Russia's total gas exports and that are taking significant steps to reduce those purchases. Whether India qualifies under this carve-out remains to be determined.
Bilateral Stakes and Diplomatic Background
This comes amid a period of complex recalibration in India-US ties, where Washington has repeatedly pressed New Delhi to distance itself from Russian energy markets, while India has maintained that energy security is a sovereign priority. The MEA's language — stressing both 'high-level' prior engagement and a determination to protect trade interests — signals that India intends to negotiate rather than capitulate.
The legislation divides the two governments at a delicate moment, with broader trade talks between India and the United States still ongoing. How the Trump administration exercises its discretion in implementing the bill — particularly the 180-day review mechanism — will likely determine whether India faces direct economic consequences.
What Comes Next
New Delhi's next moves are likely to involve diplomatic engagement at the highest levels alongside consultations with industry bodies including trade associations representing the refining and energy sectors. The MEA's pointed reference to protecting 'trade and economic interests' suggests retaliatory or hedging measures are being actively assessed, even as the government avoids escalatory language for now.