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How US bill proposing 100% tariffs over Russian oil purchase could hurt India
India, China, Slovakia, Hungary and Azerbaijan will face tariffs as the bill aims to increase economic pressure on Moscow over its invasion of Ukraine.
India is likely to feel the heat of sanctions over its purchase of Russian oil as the US Senate on Friday approved by 86 votes to 11 a bill that would authorise tariffs of up to 100% on countries buying Russian fuel and other exports.
India is among five target economies by the bill’s sponsors even as US allies in Europe are spared for similar purchases. This sweeping sanctions legislation has been authored by late Senator Lindsey Graham and was moved in the Senate late last month.
The bill now moves to the House of Representatives, where Republicans control the floor calendar and where its passage in identical form is the last hurdle before it reaches President Donald Trump for signature. Trump, whose officials helped shape the softened text now before Congress, has signalled support for House passage.
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The countries that will face steep tariffs are India, China, Slovakia, Hungary and Azerbaijan as the bill aims to increase economic pressure on Moscow over its invasion of Ukraine.
India is the second largest buyer of Russian crude oil after China.
Introduced in April 2025, Graham earlier this year announced that the bill had been greenlit by President Donald Trump amid trade tensions between US and India.
How the bill impacts India
Since the war in the West Asia broke out in February this year, India's dependence on Russian energy has increased as the shipping route via the crucial Strait of Hormuz passage remained disrupted. The Iran-US war has choked off Gulf crude supplies that previously accounted for roughly 40% of India’s oil imports, forcing refiners to turn to Russian crude as an alternative source.
Senator Richard Blumenthal had earlier stated that the bill would make an exception for countries purchasing Russian gas if their purchase is less than 15 per cent of Russia's total gas imports.
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Exactly a year earlier, the US penalised India over its energy trade with Russia when President Donald Trump announced an additional 25 per cent tariff against India for "fueling Putin's war".
The revised tarrifs pushed the total against India to 50 per cent, the highest along with China and Brazil. The new tariff also set off tensions between the two allies as the trade negotiations also came to a halt.
Months later, when the Iran-US war caused major disruption of energy supplies, the US announced a waiver on Russian oil, which allowed India to resume its purchase.
As per the US, these purchases would not bring any profits for Russia.
Amid the waiver, Indian imports of Russian crude oil rose 34% in June 2026 to record levels. According to the Centre for Research on Energy and Clean Air, these imports were valued at €4.5 billion, accounting for roughly 36% of Russia’s crude oil export revenues.
