US Blow to India Over Russian Oil? Move to Impose 100% Tariff;

New Delhi/Washington.
India, currently purchasing record quantities of crude oil from Russia, could face a major economic blow from the US. An amended bill has been introduced in the US Senate proposing tariffs of up to 100% on countries that purchase oil and gas from Russia. Nations such as India, China, Slovakia, Hungary, and Azerbaijan fall within the scope of this proposed measure. If passed, this bill would mark a significant shift in US trade policy regarding countries that source energy from Russia.
Strategy to Curb Russian Revenue
Backed by both Republican and Democratic parties, the bill aims to limit revenue generated from Russia's energy sales, thereby weakening its war-fighting capabilities. The proposal also calls for additional sanctions on senior Russian officials, the so-called 'shadow tanker fleet,' the central bank, and state-run energy projects.
Proposal Revised from 500% to 100%
The initial draft of the bill proposed a 500% tariff on countries buying oil from Russia. This was later revised to 100%. Nevertheless, the proposal could have a far-reaching impact on international trade.
India Purchased Record Oil from Russia in June
In June 2026, India imported 2.61 million barrels of crude oil per day from Russia, accounting for 52.4% of the country's total oil imports. This means that more than one out of every two barrels of oil imported by India came from Russia. Russian oil, available at discounted rates, has played a crucial role in keeping India's import bill under control.

What Would Be the Impact if the Bill Passes? If this bill is passed by the US Congress and enacted, it could impact America's trade relations with countries that purchase oil from Russia. However, for now, it is merely a proposed bill and has not yet become law. All eyes are fixed on its final form and potential impact.
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