U.S. Russia sanctions bill threatens India’s reliance on discounted crude amid potential tariffs

The U.S. Senate’s approval of a broad sanctions bill targeting Russia could force India to diversify its oil sources and confront higher import costs, stirring economic and trade uncertainties.

The U.S. Senate’s passage of a sweeping Russia sanctions bill has put India in a bind, potentially forcing a rethink of its reliance on discounted Russian crude while also threatening its exporters if Washington turns tariff powers into law. According to ThePrint, the legislation would allow the U.S. president to impose tariffs of up to 100% on buyers of Russian oil and gas, including India and China, although it still needs approval from the House of Representatives and the president’s signature before it can take effect.

India’s exposure is significant because Russian oil has become central to its import mix. Kpler data cited by ThePrint show Russia’s share of India’s crude imports rose to about 55% in July 2026, with total inflows of roughly 2.6 million to 2.7 million barrels a day in June and July. Analysts told ThePrint that any adjustment would likely be gradual, not abrupt, because refiners typically lock in cargoes weeks or months ahead and sanctions regimes often include a wind-down period for already booked shipments. The paper cited estimates of 45 to 60 days for that transition.

Even so, the direction of travel is clear: if Washington enforces the law aggressively, Indian refiners may have to lean more heavily on Iraq, Saudi Arabia, the United Arab Emirates and, potentially, the U.S., West Africa, Latin America and Venezuela. But that shift could come at a cost. Reuters has previously reported that India’s purchases of Russian oil have helped cushion its import bill, while other recent reporting has shown that tighter U.S. sanctions on Russia have already disrupted global crude flows, revived demand for non-Russian grades and pushed up shipping and insurance costs. A Carnegie Endowment analysis last year said similar sanctions pressures could lift India’s annual oil import bill by $6 billion to $7 billion if global prices rise.

The bill could also hit India on the trade side. Prerna Prabhakar of the Centre for Social and Economic Progress told ThePrint that sectors such as apparel, machinery and electronics, which rely heavily on the U.S. market, could face higher barriers if tariffs are used as leverage against Russian oil buyers. Axios reported that the Senate approved the measure by an 86-11 vote, underscoring bipartisan support for tougher action on Moscow. For now, though, analysts told ThePrint that the most likely outcome is uncertainty rather than an immediate break in Russian purchases, with the final effect depending on how the legislation is written and whether waivers are granted.