The Indian government has signaled its intent to safeguard its trade and economic interests following the US Congress's approval of the 'Lindsay O Graham Sanctioning Russia and Iran Act of 2026.' The legislation, which passed the House of Representatives on Wednesday with a 262-159 vote after clearing the Senate last month, now awaits President Trump's signature to become law.
The act is designed to curtail the financial resources supporting Russia's military operations in Ukraine by targeting Russian officials, banking institutions, and energy interests. Notably, the bill grants the US president authority to impose tariffs of up to 100 percent on goods imported from countries that continue to purchase Russian oil and gas, a list that includes India. Furthermore, the legislation targets the 'shadow fleet' of vessels used by Moscow to bypass existing sanctions.
In response to the development, India's Foreign Ministry stated that it is closely monitoring the situation. The ministry emphasized that New Delhi has consistently communicated its position to US officials regarding the potential impact of such measures on both bilateral relations and the global energy market.
"As stated on several earlier occasions, India 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," the ministry said in an official statement. To mitigate risks, Indian refiners have already begun diversifying their supply chains, sourcing crude from Brazil, Canada, Venezuela, Africa, and the United States.
While the House Ways and Means Committee noted that the bill allows for tariffs of up to 500 percent on Russian goods and up to 100 percent on goods from nations identified as major importers of Russian energy, the practical consequences for Indian exports remain uncertain. The government stated that the full impact can only be determined once the US administration clarifies the specific tariff rates, the range of products affected, and the timeline for implementation. New Delhi has pledged to collaborate with domestic trade and industry organizations to navigate the implications of the new US policy.
