Politics

Jaishankar reacts to US plan to penalize Russian oil buyers with tariffs

As US legislative actions unfold, New Delhi is likely to weigh diplomatic, economic, and strategic options to protect its trade and energy ties

PGurus Newsdesk

July 3, 2025

As US legislative actions unfold, New Delhi is likely to weigh diplomatic, economic, and strategic options to protect its trade and energy ties

Jaishankar engages US Senator over potential impact of proposed sanctions

During his four-day visit to the United States, External Affairs Minister S Jaishankar addressed concerns regarding a proposed US bill that could impose a 500% tariff on imports from countries trading with Russia, including India and China. Speaking at a press conference in Washington, Jaishankar said India had already communicated its energy security concerns to Senator Lindsey Graham, the Republican lawmaker behind the bill.

The proposed legislation targets nations that continue to import Russian oil, with India being one of the major buyers. Jaishankar confirmed that Indian officials, including those at the embassy, have remained in close contact with Senator Graham.

“Our concerns and interests in energy security have been made conversant to him. We’ll cross that bridge when we come to it, if we come to it,” Jaishankar stated.

Trump-backed bill adds pressure amid ongoing trade talks

The legislation has received support from US President Donald Trump and is part of his administration’s strategy to push Russia toward negotiating an end to the war in Ukraine. Graham’s bill specifically mentions India and China, accusing them of purchasing around 70% of Russia’s oil exports.

If passed, the bill could place a massive 500% tariff on Indian goods entering the US. However, India is currently racing to finalize a separate trade deal with the United States to prevent the reactivation of a 26% reciprocal tariff announced in April.

Impact on India’s energy strategy

India’s position is complicated by its growing dependency on discounted Russian oil. As of May, Indian crude oil imports from Russia surged to a 10-month high of 1.96 million barrels per day (bpd), surpassing traditional suppliers from the Middle East. Russian oil now accounts for 40-45% of India’s energy requirements.

This shift began after Russia’s 2022 invasion of Ukraine, which resulted in widespread Western sanctions. As Russian oil became available at lower prices, India and China increased their imports, prioritizing economic considerations and energy affordability.

The Indian government maintains that its oil import strategy is based on national interest and energy security. As US legislative actions unfold, New Delhi is likely to weigh diplomatic, economic, and strategic options to protect its trade and energy ties.

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