New Delhi: External Affairs Minister S Jaishankar has responded cautiously but firmly to growing concerns over a proposed US bill that could impose up to 500% tariffs on countries continuing trade ties with Russia, particularly in energy sector. Speaking to the reporters on Tuesday, Jaishankar confirmed that India is in contact with US lawmakers and has conveyed its concerns over the potential fallout of such punitive measures.
The bill, introduced by US Senator Lindsey Graham and backed by President Donald Trump, seeks to penalize nations—including India and China—that continue to import Russian oil. Under the proposed legislation, these countries could face steep tariffs on their exports to the United States unless they take steps to reduce economic engagement with Moscow and support Ukraine.
Asked about the matter, Jaishankar stated, “We are aware of the bill. Our embassy has been in touch with Senator Graham. We have conveyed our concerns and we will see how it progresses. We’ll cross that bridge when we come to it.”
India, which has significantly increased its imports of Russian crude since the Ukraine conflict began in 2022, maintains that its energy purchases are driven by national interes-t and affordability. Russia now accounts for more than 40% of India’s total oil imports. While India has defended these purchases on economic and strategic grounds, the proposed U.S. legislation raises the prospect of a direct economic challenge to its position.
Although the bill has not yet passed into law, its aggressive language and bipartisan backing have raised alarms in New Delhi. Indian officials believe the measure could strain the country’s trade ties with the U.S., particularly in high-value export sectors like pharmaceuticals, textiles, and information technology.
#WATCH | Washington, DC | On a question by ANI regarding US plans to impose 500% Tariffs on import of the Russian Oil, EAM Dr S Jaishankar says, “Regarding Senator Lindsey Graham’s bill, any development which is happening in the US Congress is of interest to us if it impacts our… pic.twitter.com/CvhbT6zMmH
— ANI (@ANI) July 2, 2025
However, American lawmakers have hinted that exemptions could be considered for countries that take a clearer stand on the Ukraine conflict or assist Kyiv militarily or diplomatically. India, so far, has maintained a non-aligned position, calling for a cessation of hostilities and a return to dialogue.
The External Affairs Ministry is expected to continue diplomatic outreach to Washington in the coming weeks as the bill moves through the U.S. legislative process. While the Centre has not committed to any policy change regarding Russian oil, the possibility of U.S. trade retaliation adds a new dimension to India’s geopolitical balancing act between East and West.
