The US Senate approves a comprehensive sanctions bill targeting Russian energy, prompting India to reconsider its economic strategy amid growing US pressure and strategic rivalry with China.
The US Senate has approved a sweeping Russia sanctions bill in an 86-11 vote, moving the measure closer to giving President Donald Trump authority to impose tariffs of up to 100% on countries that continue buying Russian oil and gas. According to reporting by Axios and The Associated Press, the legislation would deepen pressure on Moscow over the war in Ukraine and sharpen the economic risks for major buyers of Russian energy, including India and China.
For India, the immediate concern is not just the scale of the proposed tariff threat but the message it sends about Washington’s direction, said Sushant Sareen, a senior fellow at the Observer Research Foundation, speaking to Business Today. Sareen argued that New Delhi should begin “de-risking” from the United States in much the same way it has tried to reduce exposure to China, saying the economic relationship could not be considered stable if it was being placed under this kind of pressure.
The bill, named for the late Republican senator Lindsey O. Graham, has drawn bipartisan support and was advanced in the Senate after a year-long push by Graham, according to The Associated Press. Axios reported that the package also renews sanctions on Iran and would extend the Iran Sanctions Act until 2031. A separate Axios report said the measure would give Trump, and potentially future presidents, a clearer legal basis for punitive tariffs against major purchasers of Russian energy, even as his wider tariff agenda faces legal challenges.
Sareen also questioned whether Washington would apply the same approach to China, suggesting that retaliation from Beijing could deter the White House. He said the United States has already shown it is willing to move against India while being more cautious with China. His comments underline a broader anxiety in New Delhi: that strategic rivalry between Washington and Beijing may leave India exposed to unilateral economic pressure even as it seeks deeper ties with the US.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
