The US threat to impose an additional tariff of up to 100% on countries importing energy from Russia remains a key concern for Indian exporters, even as New Delhi continues to engage with Washington to conclude a trade deal in line with the Joint Statement issued in February.
Acknowledging the concern, a senior official said the government was closely monitoring developments related to the proposed US legislation and remained in touch with Washington at various levels.
“The proposed Sanctioning Russia Bill is part of the legislative process of the US Congress. We are closely following developments in this regard and remain in touch with the US side at various levels,” the official said.
“In our engagements, both sides have reiterated their commitment to work towards an agreement that is balanced, mutually beneficial and in line with the Joint Statement of February 2026,” the official added.
The potential tariff threat assumes significance given India’s growing dependence on Russian crude oil. India imported $14.8 billion worth of crude oil globally in July, of which $7.2 billion came from Russia, accounting for 48.6% of total crude imports.
Russia’s share in India’s crude imports has risen sharply in recent years, from around 15% in 2022 to 30.3% in FY2025-26. Its share increased further to 48.6% in June 2026 and an estimated 52% in July, according to an analysis by the Global Trade Research Initiative (GTRI).
Russia supplied crude worth $40.8 billion, accounting for 30.3% of India’s total crude imports in FY2025-26. India is currently the second-largest buyer of Russian crude.
The US legislation could expose Indian exports to additional tariffs of up to 100% if New Delhi continues to purchase Russian crude oil and natural gas.
