The Ministry of External Affairs (MEA) is watching the developments related to a new U.S. sanctions bill on Russia and Iran.

U.S.-Russia Sanctions Bill

Context

  • The Ministry of External Affairs (MEA) has said that India is monitoring developments after the U.S. Congress passed the Sanctioning Russia and Iran Act.
  • The legislation could allow the U.S. President to impose tariffs of up to 100% on countries purchasing Russian oil and gas.

Key Highlights

  • U.S. Sanctions Bill
    • The U.S. House of Representatives has passed the Sanctioning Russia and Iran Act.
    • The Bill is an amendment to the Senate’s Lindsey O. Graham Sanctioning Russia and Iran Act of 2026.
    • It will now be sent to U.S. President Donald Trump for his signature.
    • Once enacted, it could lead to significant U.S. tariffs on India.
  • Tariffs on Russian Energy Buyers
    • The Bill authorises the U.S. President to impose tariffs of up to 100% on countries that purchase Russian-origin crude oil or natural gas.
    • The measure could therefore affect countries that continue purchasing Russian energy.

India's Response

  • The MEA said that it has taken note of the passage of the Bill and is monitoring further developments.
  • India has raised the issue with various U.S. interlocutors.
  • India has clearly communicated the potential implications for:
    • India–U.S. bilateral relations
    • International energy markets
    • India's trade and economic interests
  • India stated that it remains firmly committed to ensuring energy security for its 1.4 billion people.
  • Energy security would be pursued through:
    • Diversified sourcing
    • Changing market dynamics
  • India has also stated its determination to take necessary measures to protect its trade and economic interests.
  • The government will work closely with Indian trade and industry bodies to address the possible implications.

Who Could Face Tariffs?

Countries could potentially become targets if they:

  • Are among the five largest importers, by total volume, of Russian-origin crude oil or natural gas during the 12 months preceding enactment of the law; and
  • Knowingly purchase new supplies of Russian crude oil after 30 days from the date the Bill becomes law.

Possible Exemptions

Countries may be exempt if:

  • They have taken significant steps to reduce imports of Russian natural gas; or
  • Their gas imports account for less than 15% of Russia's total gas exports.

India's Russian Oil Imports

  • India's imports of Russian oil reached an 11-month high in April 2026.
  • This increase followed the U.S. and Israel's war with Iran.
  • Earlier, India had reduced its purchases of Russian oil, with imports reaching a 38-month low in December 2025.

Earlier U.S. Tariffs on India

  • The Trump administration had announced an additional 25% tariff on India for purchasing Russian energy.
  • This was imposed on top of an existing 25% tariff.
  • The U.S. Treasury later paused sanctions on oil shipments that were already in transit before March 11, 2026.
  • The pause came as energy supplies were affected following the U.S.–Iran conflict.

Implications for India

  • Trade: Potentially higher U.S. tariffs could affect India's trade and economic interests.
  • Energy Security: Restrictions on Russian energy purchases could affect India's efforts to maintain reliable energy supplies.
  • Bilateral Relations: The issue could have implications for India–U.S. relations.
  • Global Energy Market: Changes in Russian oil and gas purchases could have wider implications for the international energy market.
  • Economic Interests: India may need to work with trade and industry bodies to address the consequences of the new measures.

Conclusion

The Ministry of External Affairs (MEA) is watching the developments related to a new U.S. sanctions bill on Russia and Iran. The U.S. House of Representatives has passed the Sanctioning Russia and Iran Act. If the law is passed, the U.S. President could impose tariffs of up to 100% on countries buying Russian oil or natural gas. India could be affected because it buys a large amount of Russian oil. The bill may target some of the biggest buyers of Russian energy. India has discussed the issue with U.S. officials and has raised concerns about its impact on trade, energy security and India–US relations. India has said that providing energy security to its 1.4 billion people is an important priority. India also wants to keep its energy sources diversified. The government of India has said that it will take necessary steps to protect India’s trade and economic interests. The issue could affect India’s trade with the US, oil supplies, and global energy markets.