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India Says It Will Continue Diversified Oil Sourcing After U.S. Lawmakers Approve Sanctions

India has said it will continue to protect its trade and economic interests while ensuring energy security for its 1.4 billion people after the U.S. Congress passed legislation that could impose tariffs of up to 100 per cent on major purchasers of Russian energy.

India’s Ministry of External Affairs said New Delhi had taken note of the passage of the Sanctioning Russia and Iran Act 2026 and was closely monitoring further developments surrounding the legislation.

The bill targets Russia’s energy sector, senior officials and networks accused of helping Moscow circumvent existing sanctions, including vessels associated with Russia’s so-called “shadow fleet.” It also gives the U.S. president authority to impose significant tariffs on goods from countries that continue purchasing large quantities of Russian energy.

India is currently a major purchaser of Russian crude oil, making the potential use of the tariff provisions particularly significant for New Delhi. However, Indian refiners have also been expanding purchases from other suppliers, including the United States, Canada, Brazil, Venezuela and African producers, as they diversify sources of crude.

“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 of External Affairs said.

New Delhi said India’s energy relationship with Russia and the possible consequences of U.S. measures have already been discussed with American officials at senior levels in recent months.

The Indian government said it had conveyed to U.S. interlocutors the potential implications for bilateral trade and economic relations as well as wider energy markets. New Delhi maintained that it would continue to safeguard India’s trade and economic interests as developments surrounding the legislation unfold.

The legislation does not mean that a 100 per cent tariff has automatically been imposed on Indian goods. Rather, it provides the U.S. president with authority to apply penalties under the conditions established by the law, making any eventual impact on India dependent on how the provisions are implemented.

The measure adds another issue to the U.S.-India economic relationship as New Delhi balances its longstanding energy ties with Russia against efforts to deepen trade and strategic relations with Washington.

For India, the government’s stated priority remains maintaining access to affordable and reliable energy while diversifying supply sources and responding to changing international market conditions

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