The United States House of Representatives has passed a sweeping sanctions bill targeting countries that continue robust trade relationships with Russia, a move that analysts warn could drastically affect India's economy — particularly its energy imports from Moscow.
The legislation, which now heads to President Donald Trump for his signature, includes provisions allowing the imposition of tariffs as high as 100% on countries deemed to be facilitating Russia's war economy. While the bill was crafted primarily to pressure nations supporting Russia's military operations, experts say India is likely to be among the hardest hit given the scale of its trade with Moscow.
India has emerged as one of the largest buyers of Russian crude oil since Western nations imposed sanctions on Moscow following its invasion of Ukraine in 2022. Indian refineries have processed vast quantities of discounted Russian petroleum, re-exporting refined products to global markets. According to trade data, bilateral trade between India and Russia surged to approximately $67 billion in the last fiscal year, with energy accounting for the lion's share.
The proposed US legislation has sent shockwaves through New Delhi, where government officials have worked to balance deepening ties with Washington while preserving strategic autonomy in foreign policy. Indian diplomats have repeatedly stated that their energy purchases from Russia comply with international law and are essential to ensuring affordable fuel for domestic consumers.
Trade analysts predict that if the tariffs take effect, they could cost Indian exporters billions of dollars annually and disrupt established supply chains. The automotive, pharmaceutical, and textile sectors — all major India-US trade pillars — could face unexpected duties on goods entering American markets.
The bill also targets other countries with substantial trade links to Russia, though India remains the most closely watched due to the volume and strategic importance of the relationship. Critics of the legislation argue that punishing third-party nations for buying Russian energy at market rates may undermine the very sanctions regime Washington seeks to strengthen.
Market reactions have been cautious, with the rupee weakening slightly against the dollar in anticipation of potential trade disruptions. Government sources indicate that New Delhi is exploring diplomatic channels to seek exemptions or softer language in the final version of the law.
