RoydadNaft –  India could face serious economic repercussions as the United States considers a sweeping new sanctions bill that would impose a 500% tariff on countries importing Russian energy products. With Russian oil now accounting for more than a third of India’s total crude imports, the proposed legislation threatens to disrupt a key component of the country’s energy strategy and raise oil prices at home.

The bill—Sanctioning Russia Act of 2025—was introduced in April by U.S. Senators Lindsey Graham (Republican) and Richard Blumenthal (Democrat), and has recently gained momentum with former President Donald Trump publicly stating that he is “strongly considering” supporting it.

India has been among the biggest beneficiaries of discounted Russian crude since the start of the Russia-Ukraine war in 2022. In 2024, Russian oil made up roughly 35% of India’s crude intake, helping cushion the country from global price volatility and reduce its energy import bill. The new sanctions could abruptly curtail this arrangement, raising costs for refiners and potentially leading to domestic fuel inflation.

Speaking during a cabinet meeting, Trump said, “It’s totally my option. They pass it, and I terminate it—totally at my option. And I’m looking at it very strongly,” adding that he is increasingly frustrated with Russian President Vladimir Putin over the ongoing conflict in Ukraine.

The proposed sanctions go beyond just tariffs on oil, gas, and uranium imports. They also include measures targeting Russian state-owned enterprises, financial institutions, and senior officials. But the centerpiece—and the most controversial provision—is the tariff penalty on countries continuing to purchase Russian energy, namely India and China.

“If you are buying energy from Russia and not helping Ukraine, your goods will face a 500% tariff coming into the United States,” Senator Graham said in an interview. He described the legislation as a “breakthrough” in exerting global pressure on Moscow and noted that Trump had encouraged lawmakers to move forward with the bill.

India has not officially responded to the U.S. proposal, but diplomatic sources suggest the matter is being closely monitored. New Delhi has consistently defended its energy purchases from Russia as driven by national interest and market economics, not geopolitics.