External Affairs Minister S. Jaishankar met with US Secretary of State Marco Rubio on Wednesday during the 81st session of the UN General Assembly High-Level Week, where he raised India's concerns about the proposed US tariff legislation. According to Jaishankar's official statement, he discussed the Sanctioning Russia and Iran Act of 2026 with Rubio, emphasizing India's interests and concerns regarding the proposed legislation. The meeting also covered discussions on the situation in the Gulf region and Ukraine, highlighting the broader diplomatic context of India's energy security concerns.
India is actively studying the details of US tariffs on buyers of Russian oil, with trade minister Piyush Goyal confirming on Monday that the government is examining the implications of the new legislation. Addressing a press briefing, Goyal said, "Details are currently coming out. We will study them and discuss them with you at an appropriate time." This development comes days after the US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which authorizes President Donald Trump to impose stiff tariffs of up to 100% on countries that buy Russian oil and gas. As reported by The Times of India, the legislation provides the US administration with the authority to impose tariffs of up to that level, while also allowing for waivers under specified conditions. The proposed tariffs do not automatically mean that India will face a 100% duty, with the measure giving the US president the authority to impose tariffs of up to 100% on goods from major purchasers of Russian petroleum or natural gas, subject to conditions in the legislation.
Critics are calling out the Trump administration for hypocrisy and double standards after Trump announced a potash deal with Belarus, a close ally of Moscow, days after signing the bill that would punish India for buying Russian energy. According to The Times of India, Trump announced with his customary fanfare that Washington is working on a "massive Deal" to purchase potash from Belarus at prices "substantially less" than what Washington currently pays Ottawa, calling it good news for American farmers. However, Belarusian President Alexander Lukashenko said there was little or no spare potash available for western markets and his country's production was already contracted, stating "Even if we wanted to supply other markets we simply don't have the volume." This apparent double standard is drawing flak in diplomatic circles, with former administration official Evan Feigenbaum pointing to the contradiction between Washington's pressure on India over Russian energy and Trump's willingness to pursue Belarusian potash, noting the appearance of "double standards and apparent hypocrisy" can affect perceptions of the US as a negotiating partner.
The economics of Russian oil have shifted significantly, with crude no longer carrying the steep discounts that made it particularly attractive to Indian refiners in the early years of the war. According to Mint, refiners are currently paying a premium of around $1 a barrel for Russian oil, while Brent crude prices of around $103 per barrel are raising concerns over import costs. A second refinery official noted that Russian oil is now being offered at a premium, though the premium is not significant and earlier this year had gone up to around $9 a barrel. The looming US tariff could now turn the insurance of Russian oil into a liability, leaving Delhi to calculate whether the savings from Russian oil are worth the price of keeping it. Former BPCL chief G. Krishnakumar warns that replacing Russian crude could increase fuel costs, pressure refinery margins and impact inflation, noting that India imported around 35% of its crude from Russia over the last 12 months, with the share rising to nearly 50% in July. India imports more than 85% of its crude oil requirements and around half its natural gas, with its relatively limited strategic petroleum reserves leaving it more exposed to West Asia supply disruptions than China, Japan and South Korea.
Russia supplied 30.3% of India's crude imports in fiscal 2026, worth $40.8 billion out of a total crude import bill of $134.7 billion, according to the Global Trade Research Initiative (GTRI). In July, Russian crude accounted for more than half of India's imports, with other suppliers lagging far behind: the UAE accounted for 10.8%, Saudi Arabia 9.6%, Venezuela 6.3%, Brazil 5.5%, Oman 5.3% and the US 2.9%. Russia alone supplied more crude than all six combined. India and China are among those most exposed because both are major buyers of Russian oil, with China accounting for half of Russia's crude exports, followed by India at 37%, Turkey at 5% and the EU at 5% between December 2022 and August 2026, according to the Centre for Research on Energy and Clean Air (CREA). Business Standard reports that Russian oil accounted for about 45% of India's oil imports in August, with the share being higher in preceding months. Russia accounted for more than 40% of India's crude imports in August, remaining the country's largest supplier, followed by the UAE at 611,000 barrels a day, Saudi Arabia at 385,000, Venezuela at 383,000, Nigeria at 129,000 and Brazil at 120,000.
If India imports at current rates with Brent crude above $100 per barrel, it will have to spend $10 billion to $20 billion extra annually, according to Rajan Kumar, professor at JNU's Centre for Russian and Central Asian Studies. Crude oil accounts for as much as 25% of India's total import bill, with the country's crude import bill reaching $63.37 billion as of July in the current fiscal year, up 56% from a year earlier. India's overall petroleum crude imports were valued at $134.71 billion in 2025–26. For New Delhi, the question extends beyond Russian oil to the broader global fertilizer market, as India requires roughly 4-5 million tonnes of potash a year and is among the world's largest importers, with Belarus being an important source. S&P Global says alternative supplies can mean higher crude, freight and insurance costs, while longer shipping routes add to the burden. "The issue is not simply whether Russian barrels can be redirected to other buyers, but whether enough alternative crude is available to replace them without tightening the global market further," says Sumit Ritolia, an analyst at maritime intelligence firm Kpler. India has saved about $12.6 billion from its post-2022 shift to Russian crude, according to CEEW estimates.
