New Delhi, January 9, 2026: India has stated that it is fully aware of and closely monitoring a proposed bipartisan Russia Sanctions Bill in the United States Congress, which, if passed, would allow the US to impose tariffs as high as 500 percent on countries importing Russian oil, including India, China, and Brazil. The bill, known as the Sanctioning Russia Act of 2025, has been championed by Republican Senator Lindsey Graham, a close ally of US President Donald Trump, and seeks to leverage trade measures against nations perceived to be financing Russia’s ongoing military operations in Ukraine.

Speaking to media on Friday, MEA spokesperson Randhir Jaiswal emphasized that India was “carefully monitoring all related issues and developments connected with the proposed bill.” While not elaborating on potential diplomatic or trade responses, Jaiswal reassured that India’s energy strategy remains grounded in the imperative of securing energy at affordable prices for its 1.4 billion population.

“We are fully aware of the proposed bill being discussed, and we are carefully monitoring all related issues and developments connected with it,” Jaiswal said. He also elaborated on India’s broader approach toward energy procurement, stressing that the country’s policy decisions take into account global market conditions and the environment, alongside domestic energy security considerations.

“As far as energy sources are concerned, our approach is well-known. We take into account the conditions and environment in the global market while ensuring energy availability at affordable prices for our population. Based on these factors, we determine our strategy and policy,” Jaiswal said, according to news agency PTI.

The MEA’s remarks come in response to statements by Senator Graham, who confirmed that President Trump had expressed support for the bill. The senator characterized the measure as a tool to punish countries buying cheap Russian oil that allegedly funds Vladimir Putin’s war machine in Ukraine. Graham said, “This bill would give President Trump tremendous leverage against countries like China, India, and Brazil to incentivize them to stop buying the cheap Russian oil that provides the financing for Putin’s bloodbath against Ukraine.”

The proposed legislation has attracted 84 co-sponsors in the US Senate and could be put to a vote as early as next week. While bipartisan in nature, it is expected to face scrutiny from trade experts and economists who warn that 500 percent tariffs on goods and services from India could effectively block Indian exports to the US, which currently amount to over $120 billion annually, including both goods and services.

India’s trade relationship with the US has seen steady growth despite earlier punitive measures. In August 2025, President Trump had already imposed a 50 percent tariff on Indian goods in response to oil purchases from Russia. Despite that, India’s exports to the US in November 2025 grew to roughly $7 billion, a 22 percent increase over the previous year, demonstrating resilience in the trade sector. Experts caution, however, that a 500 percent tariff would be economically catastrophic, making most Indian goods and services uncompetitive in the US market.

Global analysts are divided on the bill’s prospects. Ajai Srivastava of the Global Trade Research Initiative noted, “President Donald Trump has so far avoided taking tariff actions through Congress, instead relying on emergency powers under the International Emergency Economic Powers Act. That approach is now under legal challenge, and a Supreme Court ruling is expected shortly. By contrast, the Graham bill would require Senate approval, making its passage uncertain.”

Prerna Bountra of the Ananta Aspen Centre expressed a more cautious outlook. “Bipartisan support and endorsement from the President paint a challenging picture. While legal and political hurdles exist, the likelihood of the bill passing appears significant. India’s ongoing reduction in Russian oil purchases may help mitigate potential exposure, but the economic stakes are high.”

The bill specifies that the steep tariffs would apply to countries that knowingly sell, supply, transfer, or purchase oil, uranium, natural gas, petroleum products, or petrochemical products originating in Russia. The legislation also allows the US President to issue a one-time waiver of 180 days if it is deemed in the national security interest of the United States, providing some flexibility in enforcement.

India’s position, as articulated by MEA spokesperson Jaiswal, underscores the balancing act New Delhi faces between energy security, trade relations, and geopolitical imperatives. While the nation continues to diversify its energy sources, decisions are guided by considerations of global market conditions, price stability, and energy access for its population, particularly in the context of an economy heavily reliant on imported hydrocarbons.

The development occurs amid an ongoing stalemate in diplomatic efforts to resolve the Ukraine conflict, where Kyiv, Moscow, and Washington have been engaged in intermittent negotiations. While the Trump administration has indicated a preference for engagement with Moscow, the legislative push in Congress reflects a more hawkish approach toward Russia, aiming to constrain its global trade networks and financial inflows.

The MEA’s measured response indicates that India is carefully calibrating its diplomatic and economic strategy. “We are fully aware and closely monitoring developments. Any decisions on energy procurement or imports will remain aligned with India’s broader national interests, ensuring security and affordability,” Jaiswal reiterated. This statement signals India’s intent to maintain strategic autonomy in energy policy while navigating potential trade and diplomatic ramifications with the United States.

Senator Graham has also framed the bill as a moral imperative, suggesting that the measure targets countries contributing, through oil purchases, to what he described as “Putin’s war machine.” The language underscores the humanitarian narrative being used to justify punitive trade measures, although critics warn that such an approach could disproportionately affect developing economies that rely on cost-effective energy imports to sustain industrial growth and domestic consumption.

India’s energy strategy in recent years has included a gradual reduction in Russian oil imports, diversification into Middle Eastern and African crude supplies, and a growing emphasis on renewable energy. Despite these steps, Russia remains a significant source of energy for India due to competitive pricing and long-standing trade relationships. Analysts suggest that US tariffs of the proposed magnitude could compel India to accelerate diversification, but might also disrupt ongoing economic planning, particularly for sectors heavily reliant on energy imports such as petrochemicals, fertilizer production, and manufacturing.

Experts note that a key challenge lies in the fact that tariffs on services exports are legally complex, potentially involving taxes on payments for software, IT-enabled services, and other Indian service exports to US companies. With India’s services sector accounting for a substantial portion of bilateral trade, enforcement of a 500 percent tariff could have far-reaching consequences for employment, investment, and trade balances.

In conclusion, India’s MEA has signaled vigilance and strategic prudence in response to the US Russia Sanctions Bill, emphasizing the need to protect energy security, economic stability, and national interest. While the legislative process in the United States remains uncertain, India is carefully monitoring all developments, continuing to evaluate policy responses in consultation with trade, energy, and foreign affairs experts. The situation underscores the interconnected nature of global energy markets and geopolitics, where domestic policies in one country can have cascading effects on trade, diplomacy, and economic planning in another.

India’s approach reflects a deliberate balance between maintaining strategic autonomy, ensuring affordable energy for its population, and managing complex international relations. As developments unfold in the US Congress, policymakers in New Delhi will continue to assess the implications of potential tariffs while ensuring that India’s long-term energy security and economic growth objectives are not compromised.