US threat of sanction on Russian oil imports violative of national sovereignty

New Delhi: The passage of Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 in the House of Representatives, which gives President Donald Trump power to impose tariffs of up to 100% on major buyers of Russian oil, including India, has come as a potentially disruptive news for New Delhi.

The bill, which had already been passed by Senate  on August 7, seeks to constrain the financial resources of Russia in order to weaken its war against Ukraine. It targets Russian banks, officials, energy interests and foreign entities supporting Moscow’s military operations.

The countries that can be affected by the new legislation are China, India, Turkiye, Azerbaijan, Hungary, Slovakia, the UAE, Singapore, Kazakhstan and Kyrgyzstan. India is one of the world’s largest importers of Russian crude.

The latest move by the US has added to the uncertainty already prevailing in the Indian market due to the ongoing conflict in the Gulf which has raised the global crude costs.

Any disruption in the supply of Russian crude would sharply increase the country’s import bill and put pressure on the rupee and current-account balance, as Russian crude had become a major part of India’s import basket since the Ukraine war. In such a situation, the country cannot replace almost half its crude imports within a short period. The US action could force Indian refiners to look for additional supplies from other producers, potentially raising the country’s import bill. Any sharp rise in crude import bill would ultimately increase the cost of Indian good for US consumers too.

India has made it very clear to the US that it “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.”

“This issue has been discussed at high levels in recent months with various US interlocutors. Its potential implications for not just the bilateral relationship but also the international energy market have been very clearly articulated by the Indian side,” a statement from the Ministry of External Affairs said.

New Delhi has stated in very clear terms that it was determined to take all necessary measures to protect its trade and economic interests.

However, the new US Bill does not automatically impose a 100 percent tariff on India. It only authorises the US President to resort to such measures after assessment of the situation.

China, another major importer of Russian crude, has said the move lacks a basis in international law or authorization from the UN Security Council.

–India News Stream